Categories:Real Estate,Tax,UK

Real Estate newsletter — March 2013

This month’s Real Estate newsletter from Nabarro discusses residential tenancies, explains how to avoid stopping up and explores the various types of tenant security. This issue’s tax update focuses on residential tax attack and the preservation of legal professional privilege.

By definition, an investor in commercial property should not need to worry about residential tenancies. However, mixed-use buildings are surprisingly common, particularly in towns and cities, and a predominantly commercial investment with even a small residential element can be an expensive trap for the unwary investor. The implications for a purchaser of a mixed-use building will depend  largely on the type of residential element involved.

Modern, purpose built mixed-use developments tend to comprise an element of commercial space let on rack rent leases coupled with long residential leases at a premium. In order to create a clean freehold investment, the residential element and common parts of the building are often let to a residential management company on a long lease at a peppercorn. The freehold investment can then be sold with the benefit of the residential ground rents and commercial rack rents without the need to consider the rights afforded to long residential leaseholders under the Landlord and Tenant Act 1987. If properly structured, this type of development should not cause an investor much trouble…

If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.

 

Briefings from Nabarro

View more briefings from Nabarro

Analysis from The Lawyer

  • pro neg

    Professional negligence: Claims vs reality

    Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem 

  • Google HQ

    Number crunching: Nabarro’s real estate

    Real estate continues to be the key money spinner for Nabarro, which has always been known for its work in the UK property market, (although) last year results were up across the firm.  Google’s ...

View more analysis from The Lawyer

Overview

Lacon House
84 Theobald's Road
London
WC1X 8RW
UK
http://www.nabarro.com

Turnover (£m): 116.30
No. of Lawyers: 360