Fisher German magazine issue 9 Winter 2012 by fishergermanllp

www.fishergerman.co.uk

W inter 2012 | Issue 09

fisher german magazine Changing tax New charges for non natural UK residents

Hitting the right stride

Jim Cullotyâ&#x20AC;&#x2122;s successful equestrian business

Estate of independence Developing and diversifying income

farm for all seasons A

An unusual business partnership has helped drive success

Welcome

Welcome to our winter edition of the Fisher German magazine. Through the excitement of the Olympic summer we saw several signs of improving economic conditions in a number of the sectors that we work in. This was supported by the one per cent growth in GDP reported at the end of the second quarter of the year. However, market conditions in some economic and geographic areas remain difficult and these have not been helped by a very wet summer and autumn, particularly for those clients in agriculture. We suspect that this slow path will continue for some time as the UK economy claws its way back to full recovery over the next few years. The importance of quality and innovation will be paramount in order to succeed in the competitive economy we live in and what is, undoubtedly, a changed world. Our investment in partners and staff continues and is showing benefit as evidenced by a growth in market share in all areas. Ultimately this growth is judged by our clients where we continue to focus on delivering client service in niche markets. We hope that this magazine gives you an insight into the areas we are involved in and some of the exciting opportunities that exist.

Estate of independence Business diversification strategies ensure a self sufficient and profitable future

A farm for all seasons

Caveat vendor

An unusual business partnership has helped drive Willows Farm Village to success

An art bargain can mean serious losses for the unwary seller

20 Bowled over by success

Down to earth loans

A spectacular new cricket pavilion combines heritage with outstanding new facilities

Farmers and landowners looking to diversify their businesses should consider AMCâ&#x20AC;&#x2122;s favourable loans

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Changing tax

A great shop window

New legislation could impact non natural owners of properties worth £2m and above

New high street offices in Thame

10 The CAP takes shape

A great partnership

Capping provisions could cause problems for some businesses

Fisher German announces promotions

Hitting the right stride

A resourceful nature

Helping Jim Culloty’s move from successful jockey to leading horse trainer

A groundbreaking wind turbine build will ensure energy security for a long established farming business

Interesting times

Making the grade

Robust business plans are important in accessing favourable lending rates from banks

The advantages and disadvantages of owning and selling a listed property

Sector insight

Sector directory

Fisher German’s sector heads forecast market conditions for 2013

Contact details for Fisher German’s 14 national offices

34 fisher german magazine

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ÂŁ2

properties worth ÂŁ2m and over, and owned by non natural persons will be targeted

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of the value is derived from UK residential property

Changing TAX

New taxation rules could impact non natural persons owning residential property in the UK worth £2m and above

udgetary changes planned by the UK Government are targeting residential properties valued at £2m and above owned by non natural persons. A recently published consultation paper sets out proposals for an annual tax on these properties and the extension of the capital gains tax (CGT) on their sale by non natural persons who are non UK residents. An announcement is expected in early December with the new rules set to take effect in April 2013. The aim of both taxes is to prevent avoidance of stamp duty land tax (SDLT) and CGT by owners of high value residential property, to act as a deterrent to the enveloping of such properties and to create a more level playing field between UK residents and non residents.

Non natural person A non natural person is a company, including landed estates companies holding significant residences, partnership (where at least one of the partners is a company) or collective investment vehicle. Communal residential accommodation, corporate trustees, charities and, in certain circumstances, property developers are excluded from the proposals.

Annual charge The annual charge will be based on the market value of the property at 1 April 2012 or the date of acquisition if later. The definition of market value will be as described in guidance from the Royal Institution of Chartered Surveyors. Valuations for the annual charge will be self assessed and submitted as part of an annual tax return. Under HM Revenue & Customs guidance a valuation by a suitably qualified valuer should provide protection for the taxpayer from possible penalties if it was established that the property had been incorrectly valued within the return.

Capital gains tax

The proposed annual charge is: £15,000 – £2m to £5m £35,000 – £5m to £10m £70,000 – £10m to £20m £140,000 – £20m The charge will increase annually in line with the consumer price index and properties will need to be revalued every five years.

2013 disposals of UK residential property worth £2m and above by non natural persons who are non UK residents would fall within the scope of CGT. The definition of a non natural person for the purpose of CGT is wider ranging and differs from the definition for the annual charge. CGT would apply to the disposal of UK dwellings and the disposal of assets that represent such property. These assets would include shares, interests or securities in property owning companies where more than 50 per cent of the value is derived from UK residential property. Any gains will be calculated in accordance with current rules.

Advice While this targeting appears misplaced, the forthcoming changes could have significant ramifications for a wide range of clients. However, any immediate action is premature and it is important to wait until full details are revealed on 11 December 2012. In the meantime, if you would like to discuss this further, please do not hesitate to contact Fisher German. An update bulletin will be produced once the rules and regulations are known; please contact us to receive a copy. For further information contact James Ingestre on 01785 273987 or email james.ingestre@fishergerman.co.uk

The consultation paper proposes that from April

The forthcoming changes could have significant ramifications for a wide range of clients” fisher german magazine

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A site of success The new, upgraded LinesearchbeforeUdig site is going from strength to strength as its expanding membership illustrates

ugust and September saw an increased take up of the new LinesearchbeforeUdig service. Enquiries exceeded 80,000 in September with more than 3,000 users accessing the service in the same month. LinesearchbeforeUdig is a free to use, internet based, search enquiry system available 24/7 to any third party company or private individual to make asset enquiries online while planning or before starting work. The site acts as a single point of contact for all enquiries relating to the apparatus owned and/or operated by the

asset owners protected by LinesearchbeforeUdig. The system now totals over 200,000km of assets including underground and overhead transmission and distribution electricity networks, transmission gas/oil pipelines and fibre optic cable networks. The upgraded service means that every initial enquiry receives an instant response advising if his or her location is inside or

Wind gains momentum Investing in wind farms is good news thanks to the Government’s commitment and the public’s growing acceptance of wind as a clean energy resource

nvestors in wind farms received good news in late July. Despite continued bad press and political unease, the Government stood firm on Renewables Obligation Certificates (ROCs) for onshore farms. ROCs have fallen to just 0.9 per MW (down from the current level of 1.0), and not the expected 0.75. A more significant reduction, says Mark Newton of Fisher German, would have rendered many wind developments south of the Scottish border no longer economic. The 0.9 ROCs are guaranteed until March 2014 after which they are likely to be reviewed if two factors come into play – a dramatic fall in costs due to overseas production in India and China and political manoeuvring by more than 100 Tory MPs with seats in the Shires who are adopting a strong anti wind farm stance.

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However, despite some opposition, wind farms are increasingly becoming the acceptable face of renewable energy. A ComRes poll for The Independent in September revealed that 68 per cent of the public believes that new wind farms are “an acceptable price to pay” for greener energy in the future. Eighty per cent of those polled aged between 18 and 44 backed wind farms, compared with 59 per cent of those aged 45 and over. Adding further power to the argument is the fact that, post 2015, the UK could be at risk of power cuts due to the closure of coal fired power stations and nuclear power stations not being replaced. Mark says: “If the lights start going out after 2015, this will lead to much greater acceptance of wind turbines, as

outside the zone for the LinesearchbeforeUdig asset owners. This filtering process means that enquirers receive faster response times and asset owners only receive relevant (inside zone) enquiries, negating the need to check enquiries that are not near their asset base. Western Power Distribution and Electricity North West Limited both protect their infrastructure via the

Wind farms are increasingly becoming the acceptable face of renewable energy”

domestic fossil fuel reserves become increasingly depleted, so that renewable resources can provide alternative energy security and investment opportunities.” The UK’s target for the next seven years is an increase in renewable energy from 3.8 per cent to 15 per cent and wind farms have a vital role to play. Wind energy currently powers nearly 5m homes in the UK and this is set to

The upgraded service means that every initial enquiry receives an instant response” LinesearchbeforeUdig service. September saw in excess of 26,000 enquiries and 16,000 plan responses created and sent back to the recipients within an average of well under ten minutes each. The service is continuing to increase in popularity – Seabank, Transmission Capital, Sea Fibre & EirGrid have all become members recently, with many more companies in the process of joining. In an additional exciting new development, Openreach has mandated the use of the LinesearchbeforeUdig service for all internal enquiries.

For further information contact Marcus Edwards on 0845 301 1442 or email marcus.edwards@pelicancorp.com

A question of accommodation

Negotiating contracts between a landlord and tenant can be, to say the least, challenging. Chris Hicks of Fisher German recently dealt with such a contract between the owners of a mill and its telecom tenants

he Whitworth Brothers, suppliers of flour throughout the UK, recently found it necessary to undertake repairs to the roof of one of their properties, Dogsthorpe Mill. The mill is also rented out as a site to five telecom operators – Vodafone, O2, Orange, T-Mobile and H3G – and the repair work meant that an urgent relocation of the telecoms equipment was essential to avoid business interruption. Chris Hicks of Fisher German was instructed by the Whitworth Brothers to find both temporary and permanent sites for the equipment and to

“In addition, operators are protected by the Telecommunications Act of 1984 as amended by the Communications Act of 2003.” Key to renegotiating any contract is a good working relationship and Chris and his team worked hard with the operators to exceed his client’s expectations. “By autumn of 2011, T-Mobile, H3G and Orange had relocated their equipment. This was achieved within six months of instruction and at their cost. Just six months later Vodafone had, again at its own cost, relocated and O2 has now relocated according to the agreed timetable,” says Chris. Chris also negotiated substantial increases in rental for the landlord with a 50 per cent rise for three of the leases. “We had extremely close contact with the client, as well as the tenants, which always helps when working on any contract, and we all had the same common goal,” explains Chris. “It was a successful outcome for all parties.”

The task was challenging as the original leases were fraught with problems”

increase to 17m by 2020. The majority of this additional capacity will come from offshore projects, but these are twice the cost of onshore wind farms.

For further information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

renegotiate all five leases with the telecom operators as they had either expired or were just about to. The task was challenging as the original leases were fraught with problems. “There were no rights for the landlord to seek temporary accommodation, there was also the problem of protected business tenancies under the Landlord & Tenant Act 1954 and, furthermore, there were no lift and shift clauses,” explains Chris.

For further information contact Chris Hicks on 01858 411202 or email christopher.hicks@fishergerman.co.uk

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An unsatisfactory proposal Landlord owners of property affected by the first phase of HS2 must respond to the unsatisfactory provisions recently announced

he Department of Transport has announced provisional compensation measures for those affected by Phase One of HS2, the proposed high speed railway between London, Birmingham and Lichfield. These measures are largely for the benefit of owner occupiers and will provide little comfort for landlord owners of property. The compensation provisions are for consultation only at this stage and have not been confirmed and it is important that those affected by HS2 are aware of its contents and respond to the document before 31 January 2013. The consultation is available from the Department for Transport website. Once consultation has taken place, the line of route and 60m either side (with some limited exceptions) will be safeguarded (the Safeguarded Area) with rural areas 60â&#x20AC;&#x201C;120m from the railway set within the Voluntary Purchase Zone. Safeguarding will prevent new development that would obstruct the railway.

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Owner occupiers within the Safeguarded Area and the Voluntary Purchase Zone will be able to apply for HS2 to purchase their properties at unaffected market value with property loss payments in some cases under the proposed Voluntary Purchase Scheme. Those outside the Voluntary Purchase Zone may be able to apply for the Long Term Hardship Scheme. This scheme is very similar to the existing Exceptional Hardship Scheme as it will apply where owners of property experience exceptional hardship where they cannot sell their property due to the effect of HS2. Where owners retain property, they are entitled to compensation once Notice of Entry is served upon them (where land is to be taken) or for far more limited compensation one year after trains are running where no land is taken, but there is a loss of value due to the running of the trains. Properties above tunnels are largely

exempt from the schemes described above, but the Government has offered limited measures to protect the value of this type of property. Fisher German has experience of representing property owners on similar infrastructure projects, including the West Coast Mainline upgrading, Evergreen 3 (Oxfordâ&#x20AC;&#x201C;Bicester) railway and various road schemes. The firm is also advising those potentially affected by the proposed HLOS railway electrification and reopening scheme. It provides advice to a large number of property owners along the proposed route of HS2 with 4 of 14 national offices strategically placed close to the line of route.

For further information contact Jonathan Perks on 01295 226282 or email jonathan.perks@fishergerman.co.uk

UKBS – building for the future Fisher German is part of the impressive UKBS – a national network of companies with local skills and expertise

isher German’s building consultancy team is part of an innovative joint venture company, UKBS Plc, property consultants, and Richard Benson, head of planning and construction at Fisher German, is operations director at UKBS. Richard explains that UKBS, with 14 member companies and 34 offices spread throughout the UK, provides national coverage. “The member companies are well established local firms with offices from Truro to Tyneside, Edinburgh to Exeter and Cardiff to Cromer. They provide local skills and expertise across the UK to their clients,” he says. UKBS operates on a postcode basis and the separate companies that make up UKBS undertake work in specific areas/ regions. For example, Fisher German, with strong roots in the East Midlands, is the UKBS firm in Leicestershire, Derbyshire, Northamptonshire, Nottinghamshire, parts of Warwickshire and Oxfordshire. Richard adds that UKBS was set up specifically to facilitate work for regional firms on a national basis and that the company has distinct advantages over its

competition. As well as the considerable office network, UKBS boasts: •a pproximately 200 qualified building consultancy staff •v aried support/specialist disciplines such as civil and structural engineering, planning, mechanical and electrical engineering •a ‘group’ turnover approaching £30m a • dedicated website portal to facilitate communications and client access to databases •a n established and separate national identity Over the past five years, the firm has successfully completed projects, on a national basis, for the Salvation Army, the Post Office, the Royal Mail Group, Paddy Power, Aurora Fashions, Abbeyfield Residential Care, Peveril Property Management and the Royal British Legion. UKBS provides its clients with a coordinated service throughout Great Britain and Ireland and offers dedicated key account managers and a consistently high standard of service and delivery.

For further information contact Richard Benson on 01530 410825 or email richard.benson@fishergerman.co.uk

Fisher German works with EFA As part of UKBS Fisher German is documenting the condition of all state schools in the East Midlands on behalf of the Education Funding Agency (EFA). The project is part of the EFA’s wider scheme to record the condition of all schools throughout England and Wales over the next 12–18 months. Fisher German will be working with lead consultant Davis Langdon Aecom who has responsibility for recording the condition of schools in the Midlands and the North West of England. Richard Benson explains: “Our surveyors will undertake high level condition surveys of all school buildings in the region. The condition of the respective school is recorded on site using iPads. As the surveys are completed the data is automatically transferred to a web based portal. This makes great use of information technology, allowing us to maximise surveying time, thereby reducing costs and providing value for our client. “This is a major undertaking and we had to increase our initial resource shortly after the commission commenced in order to satisfy the EFA’s programme requirements.”

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A great shop window Business expansion has seen a move to new premises in Thame for the Fisher German team

he expansion of the Fisher German team in Thame has resulted in a move to new, larger and more high profile offices on the high street. The location will provide an ideal shop window for property sales, more space to accommodate its growing team and enable the firm to provide enhanced service lines with meeting room facilities for clients. Office partner Stephen Rutledge comments: “This is an exciting development in the growth of our Thame business and represents a consolidation of our work there.” The move is a result of the expansion of the Fisher German team to keep pace with client demand in the region. Stephen continues: “The move will heighten our local profile considerably. We have a very capable team in our Thame office and a strong core business.

This move offers us an exciting opportunity to grow our business. We very much value our close links with the Thame livestock

The move is the result of the expansion of the Fisher German team to keep pace with client demand” market and we will continue to have a presence there and be on hand to provide top class advice to their farming client base.”

For further information contact Stephen Rutledge on 01295 226292 or email stephen.rutledge@fishergerman.co.uk

Going for Olympic gold P hil George, office assistant at Fisher German Denton Clark in Chester, had an unforgettable summer. He was one of the thousands of volunteers at the 2012 Olympic Games an experience, says Phil, that he would recommend to everyone. Three years ago Phil saw an article about volunteering at the Games and thought: “I’m 53, my children are grown up and it’s time that I tried something completely different.” After a series of interviews he was selected. “I

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think the fact that I can sign and have studied communication skills was key,” says Phil. Phil says that his particularly memorable moments from the Olympics 2012 include watching Nicola Adams from Team GB win the first ladies’ gold boxing medal and having a chat with Princess Anne. “I loved helping the public and making the Games a special experience for them. It really was an unforgettable two and a half weeks,” he recalls.

The

CAP takes

shape CAP reforms are finally taking shape and, although mostly good news, capping provisions could cause problems for some businesses

Greening requirements are a sticking point for CAP reforms

The reduction in the €250,000– €300,000 claim range is

housands of amendments to the European Commission’s (EC’s) original proposals for Common Agricultural Policy (CAP) reform are currently lodged by MEPs. This is likely to slow progress but the Commission remains committed to concluding negotiations by the end of 2012 in order for a vote at the beginning of 2013. If passed, the reforms would come into operation from January 2014. The EC’s proposed reforms have three

being met. But while most European politicians are in favour of greening, there are strong concerns that it can only be applied by increasing cost and administration for European states and increasing bureaucracy for farmers. The EC proposes to make farmers place 7 per cent of their land under ecological focus areas (EFAs), freezing permanent grassland and introducing a three crop rule for farms over 3 hectares to qualify for full payments. Many farmers are concerned that these Capping is still a central impositions will restrict food part of the proposed changes production and affect food security. Farmers’ and a risk to some businesses” organisations such as COPA-COGECA are underlying goals: to reduce the demanding that farmers are given a bureaucracy of CAP, to increase flexibility choice of an extended list of greening for EU member states to account for measures post CAP 2013, options primarily Europe’s widely differing agriculture and to to reflect the versatile and diverse nature provide market measures to help farmers of European agriculture. manage price volatility. There is also an aim This issue is dividing member states, with to increase agricultural potential to meet the UK, France, Germany and Italy all increasing demand for food. voicing concerns that the one size fits all But a key sticking point is ‘greening’ – approach proposed by the Commission is increasing biodiversity – a policy directly fundamentally flawed. However, it is aimed at maintaining taxpayer support for unlikely that a perfect alternative the agricultural sector. The Commission’s approach to the Commission’s proposals proposals post CAP 2014 suggest that 30 will be found and that any choice per cent of direct payments to farmers will inevitably will involve compromises, with a be contingent on greening requirements trade off to be made between

80%

environmental additionality and administrative simplicity. The active farmer test seems to be less important and has been moved to a negative list basis. The activities excluded from the scheme are defined and include mining businesses, airports and hunting estates. The RPA, however, still requires proof from the applicant that the land is being actively farmed. Capping is still a central part of the proposed changes and a risk to some businesses. While it remains much the same, the reduction in the €250,000– 300,000 claim range is now 80 per cent and not 70 per cent. Capping provisions still apply to the basic payment element only and are still subject to the offset of labour costs. The provisions exclude cooperatives, although the precise definition of a cooperative is less than clear. Anti avoidance measures for capping largely preclude splitting businesses to mitigate this unless there are genuine reasons and separation of the business ownership.

For more information contact Richard Sanders on 01858 411234 or email richard.sanders@fishergerman.co.uk

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A great partnership A number of partnership promotions have been announced across Fisher German

eptember was a memorable month for many members of the Fisher German team. Matthew Allen in the Banbury office, Kate Kingsley and Seb Kingsley in the Ashby de la Zouch office, Hugh Maxfield in the Knutsford office and Rebecca Seaman in the Market Harborough office all became partners. In addition, 15 surveyors from 6 Fisher German offices were promoted to associate level. The promotions continued into October when James Goodson was promoted to fixed share partner. James joined Fisher German from Brown and Co five years ago and is based in the Newark office but

September was a memorable month for many members of Fisher German” also carries out work from the Market Harborough office and across central England. James works in the farms department, where he advises on business structure, strategic direction, business reviews and appraisals, as well as managing a large number of inhand farms, contract farming and joint venture arrangements. He also advises clients on Single Farm Payment matters, as well as EU legislation, Entry/Higher Level Stewardship and diversification grant schemes. Senior partner John Pitts says: “I am delighted to announce the promotions and on behalf of the partners congratulate all of the staff on their advancement within the business. It is very pleasing to announce these promotions at a time when Fisher German continues to grow and our range of work gets stronger.”

For further information contact John Pitts on 01530 410810 or email john.pitts@fishergerman.co.uk

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Partner spotlight

Racing ahead

Darren Edwards joined Fisher German as a graduate trainee. The youngest person to make partner level, his competitive nature has shaped both his professional and amateur careers

arren Edwards enjoys the involved in renewables for eight years accolade of being the youngest and I have spent my professional life in member of staff to reach the sector. The work has changed over the partnership in Fisher German’s years from focusing on large scale multi history. Such notoriety is something megawatt wind farms to smaller single that Darren is accustomed to – alongside turbines, solar PV and more complex his professional career as a chartered AD plants. We have a growing client surveyor he is a highly successful base in Northern Ireland and I really amateur jockey racing in Fisher German enjoy travelling there to visit clients and colours and has racked up nearly 150 to promote our services. We also work wins since he started racing at the age closely with the NFU, whose members we of 16, including a Cheltenham Festival exclusively advise, and banks including winner. the Lloyds Group, RBS and HSBC on Darren joined the Market Harborough renewable projects. We have worked office of Fisher German in 2006, as a graduate of the Royal Agricultural College, Cirencester. “I grew too big to be a professional jockey and as my roots are very much in the country – home is a farm on Exmoor – joining a firm of chartered surveyors was a natural step for me. Fisher German seemed to offer great career opportunities,” he explains. After taking his RICS qualifications Darren became an associate in 2010 and closely with these three lenders and was made a local partner in April this helped shape their lending policy, which year. Working alongside Mark Newton has given me great insight into how best in renewables, Darren describes the to advise our renewable clients.” sector as “niche but growing”. He says Over the last three years Darren has that he enjoys working in renewables as also been heavily involved with Fisher every day brings a German’s graduate different challenge. recruitment and “It’s a sector that training programme. Responsible from inception to completion has undergone rapid “It has been a great for the delivery of Fisher German’s first expansion and Fisher experience, both single wind turbine project under the German is a market challenging and Feed-in Tariff 2010–12. Darren ran the leader which is great rewarding. The £1.2m project: “I was proud of helping to bring the project to fruition.” for me professionally. growth of the firm The firm has been since I joined has

We have worked closely with the lenders giving me great insight into renewables”

Career

The personal touch Education? Degree in Rural Land Management from the Royal Agricultural College, Cirencester. Married? Not married, lives in Kibworth. Pets? Horses at home. Sports? Darren has ridden ever since he could walk and regularly competes in National Hunt and point to point racing. He has managed to remain relatively unscathed throughout his racing career but has broken several bones including his wrist, collar bone and nose! Darren attributes his fascination with racing to his father who has a racing permit.

been tremendous and we now take on between 10 and 15 graduates a year. Having been through the process with Fisher German myself, I appreciate the importance of properly integrating graduates into the firm and it has been very satisfying seeing them develop into young professionals who can go on and flourish in their careers,” he explains. A competitive person by nature, as his racing career illustrates, Darren says he likes to succeed. “It’s wonderful to be part of Fisher German’s successful renewable team. I aim to keep renewable energy at the forefront of the business and continue to help develop our client base.”

For further information contact Darren Edwards on 01858 411236 or email darren.edwards@fishergerman.co.uk

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Estate of independence The business diversification strategies underway at Belvoir Estate will ensure a self sufficient and profitable future

he Belvoir Estate in Lincolnshire is set in 16,000 glorious acres. The ancestral home of the Eleventh Duke and Duchess of Rutland and their five children, Belvoir is becoming as well known for its entrepreneurial spirit as it is for its illustrious past. The present castle at Belvoir is the fourth to have stood on the site since Norman times and is renowned as a tourist attraction with many notable pieces of art on display in its stunning interior. A third of the estate is managed inhand with the remainder let to tenants who run a range of diverse enterprises from traditional farms to public houses, playgrounds, telecom mast lettings and recreational facilities. However, aware that the commercial potential of Belvoir was not performing to its maximum capability, Her Grace, The Duchess of Rutland, recently employed

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David Merton of Fisher German to oversee the management of the estate’s tenanted properties and land. The appointment was a natural step for Her Grace who already has strong ties with the firm as Richard Sanders has managed Belvoir’s inhand farming operations for the last four years.

Innovative solutions David’s remit is to build on the successes achieved so far at Belvoir and bring new innovative solutions to the estate’s management practices on the let agricultural and commercial portfolio. “The intention is to increase financial returns from the estate’s varied assets and there are already a number of projects under way by managing the portfolio as a modern and innovative business. This is being achieved by bringing in new management practices,

many from outside the industry and developing a hybrid of arrangements that bring additional value beyond conventional estate management. We are finding new uses for redundant buildings, restructuring existing tenancies for the benefit of both landlord and tenant along with securing grant aid where this is available. It is not what we are doing that is different but just the way we are implementing the restructuring, which when viewed at a macro position adds so much more value,” he explains.

9,000

acres of arable land at Belvoir Estate

client case study – business diversification

were also revisited so a plan as to how these might be restructured could be considered. This was to benefit not just the landlord but also the tenant and new terms and conditions are being put in place where necessary.” The Belvoir Estate might trace its heritage back to the 11th century, but its current Chatelaine, Her Grace, very much lives in the 21st. The Duchess is always eager to embrace any new ideas and developments that could benefit Belvoir and a biomass boiler is being installed at the castle. This will not only reduce the castle’s carbon footprint but save £70,000 a year on fuel through burning woodchip produced from the estate’s 2,000 acres of woodland.

Financial return There is also a sawmill on the estate which produces some of the 100 tonnes of firewood that Belvoir sells every year. The mill is currently being relet and will be run as a joint venture company to maximise the use of the estate’s timber and the financial return from this valuable asset. In addition to the estate’s extensive woodland, Belvoir’s natural resources also include a large and successful partridge

Commercial opportunities There are some exciting commercial opportunities currently available for various lettings at Belvoir Estate and David is keen to identify suitable tenants and partners. For more information contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

explains: “Belvoir has the most fantastic natural resources and is now being proactively managed. We are all working as a team with other advisors and the clients to ensure the basic foundations are such that we can build a formidable modern business from a traditional base. Belvoir, unlike many other country estates, has the critical mass to achieve this. It is

Belvoir is set to be a major player within the country estate corporate world” Belvoir’s tenanted properties and land consist of nearly 400 properties and 9,000 acres and is a traditional mix of farms ranging from large arable enterprises to livestock farms and small holdings. The commercial properties located on the estate also vary from office accommodation to public houses, riding stables and workshops. While some businesses were thriving at Belvoir, others were failing to maximise their potential and David and his team embarked on meeting the estate’s tenants and inspecting each and every property at Belvoir within their management remit within the first few months. “It was vital to understand the history and background of the properties as with any existing letting, in order to ensure that the business as a whole could look at all the opportunities,” explains David. “All the tenancy terms on the properties

and pheasant shoot, three lakes, which offer coarse fishing, and a superb hunt with one of the UK’s few remaining packs of Old English Foxhounds. Belvoir’s stunning setting has made it the ideal location for weddings and a semi permanent marquee is now being installed in the park. Numerous weddings will be held there every year, which will bring in a further valuable source of income and work with other successful local businesses to provide the structure and catering. As a venue, Belvoir is also popular with corporates that enjoy team building events and the estate has, understandably, proved an ideal film and television location for a variety of productions. David is adamant that Belvoir is set to be a major player within the country estate corporate world. While that might sound something of an oxymoron he

the perfect location for a huge variety of businesses, both existing and new, and when considered as a whole will deliver a truly modern holistic management plan. David meets regularly with Her Grace and estate representatives to ensure that Belvoir is being run in a manner that both upholds its heritage and looks forward to the future. “We are working with one of the finest estates in the country and we hope to continue to develop the estate and diversify and grow its income streams over the coming years, so that the estate can successfully meet the challenges of the 21st century, to the benefit of its owners, tenants and the local community.”

For further information contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

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Hitting the right stride Jim Culloty was one of National Hunt’s finest jockeys. He is now carving a successful career as a race horse trainer from his five star facilities in County Cork, Ireland

im Culloty lives his life by the proverb: “It is better to have lived and died than not to have lived at all”. Now a successful horse trainer, trader and farmer based in Mount Corbitt, Mallow, County Cork, Jim is one of the elite of the National Hunt racing world. In his ten year career as a professional jockey he stacked up 394 wins, including a remarkable three consecutive victories on Best Mate in the Cheltenham Gold Cup and in 2002 went on to triumph at the Aintree Grand National on Bindaree just 23 days later – a magnificent double. However, horse racing is an arduous, not to say dangerous, and fairly short term career. Jim decided in 2005 the time was right to start to divert his passion for horses into training. “It was a natural step,” he explains. “I had bought a farm, Mount Corbitt, in County Cork just before the boom in the Irish property market and decided it was the right time to focus on training. I never do things half heartedly

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– you can’t with horses – so after getting my trainer’s licence I put all my energy into developing the farm into a top class National Hunt training yard.” Jim’s commitment to establishing a first rate yard has resulted in stunning and unparalleled facilities including a four and a half furlong uphill sand and fibre gallop, a four furlong round sand fibre gallop, a state of the art all weather schooling ground, horse walkers, a horse spa, a loose school and 300 acres of grassland. His investment has paid off and Jim scooped his first winner as a trainer in November 2006 when Braun Star won at Thurles. Since then he has trained in excess of 30 winners and currently has 20 horses

394

is the number of wins that Jim Culloty stacked up

in training with Tom Doyle as his race jockey.

Cashflow problem Jim says that the first few years at Mount Corbitt were tough. “I wondered whether I had done the right thing and if I should carry on. I had just got married to Susie and we were starting a family. We seemed to be spending more money than we had coming in and cashflow was starting to be a problem. I had committed 100 per cent to the business which was a big risk for all of us.” Henry Sale of Fisher German persuaded Jim that he needed to review his business practice and both Henry

300

acres The yard is set in extensive acreage

client case study – growing the business

Mount Corbitt has fantastic facilities

Jim’s career

The main stable yard

Galloping ahead: the schooling ground

and Holly Richardson-Parry, a Fisher German colleague, visited Mount Corbitt to overhaul how the farm was being run. “Before Henry’s input we kept running into cashflow difficulties. I was working 24/7 but not getting any financial rewards out of the business. It was worrying and frustrating and all a bit chaotic – we

helped us to produce staff job descriptions, review health and safety policies and set goals for Mount Corbitt. He also advised us on general property matters – we have several houses, cottages and outbuildings on the farm.” Jim says that he was surprised to find out what was and wasn’t making money at Mount Corbitt. “It turned out that the racing business was profitable but trading wasn’t. Trading is becoming profitable now as we are seeing the returns on our investments at last. We have rationalised and streamlined the business and, following Henry’s advice, have even managed to reduce insurance costs by a third.” With Mount Corbitt now profitable Jim is looking forward to further expanding both horse training and horse trading at the farm. “The farming side of the business doesn’t make money but complements training and racing. We put the very best into our horses so, inevitably, we aren’t the cheapest of trainers. But we’re not the most expensive by a long shot and have superb facilities with excellent staff. For example, this year we’ve had to use Canadian hay as the harvest was so terrible but you have to put the best into the horses or you can’t expect the best out of them.” Jim hopes to attract more owners to his yard and is continuing to invest in buying youngstock with the hope that he will one day find his own personal Best Mate. “I buy four or five foals a year and keep the

We have rationalised and streamlined the business and managed to reduce insurance costs by a third” were doing a bit of farming, horse trading and horse training but with no clear strategies. Henry gave us a lot of very good advice. For example, we installed a better computer system for accounting purposes, which meant we could analyse which part of the business was making money and which wasn’t. Henry then

After finishing school Jim spent a year riding point to pointers for David Bloomfield in Cornwall, where he ended up champion novice point to point rider. From there he spent two years with Jackie Retter before moving to Henrietta Knight’s yard where he became champion amateur in his first season. Jim turned professional and was stable jockey to Knight for ten years. He rode a total of 394 winners as a professional with big race wins including three Gold Cups, an Aintree Grand National, an Irish Grand National and a King George, to name just a few. Jim is one of eight brothers and sisters, none of which followed him into racing instead choosing university and more sedentary careers. He married Susie Samworth in May 2004, a former successful amateur jockey who now events and helps to run the horse trading side of the business. The couple have three children, Art, Eliza and Hugh: all are showing the same passion for the horse world as their parents.

best. We’re buying better quality stock each year and we’ve got some potentially very good youngsters on the yard at the moment. We’re looking forward to watching them develop.” Jim’s racing pedigree is such that he has two bars named after him – the Jim Culloty bar at Killarney, near to where he was born, and the Jim’s next to the Best Mate Enclosure at Cheltenham, the namesake of Jim Culloty and Jim Lewis, Best Mate’s owner – a fitting accolade for one of racing’s finest jockeys. As for the future, it goes without saying that Jim’s talent, determination and drive will inevitably establish him as one of the industry’s leading trainers.

For further information contact Holly Richardson-Parry on 01858 411225 or holly.richardson-parry@fishergerman.co.uk

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A resourceful

nature

The Strawson brothers’ commitment to renewable energy sources has driven the build of North East Lincolnshire’s first wind turbine

nergy production over the long term is a major concern for many. Farmers and property developers M F Strawson of Great Coates recently took matters into their own hands when they built North East Lincolnshire’s first 500kW wind turbine. Measuring 50m from ground to hub with a 54m rotor diameter, the turbine, which was built on a farm close to Grimsby, will provide a long term energy solution (20 years) to the business. M F Strawson is a family owned business that integrates traditional farming and land management with property development. Two brothers run the business, which was founded by their grandfather, from the farm offices at Pyewipe Farm. The company farms and concentrates its activities in the East Midlands area and has completed a number of development schemes across the region. The brothers’ decision to build a wind turbine to offset

5O0 18

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North East Lincolnshire’s first wind turbine of this size

client case study – renewable energy

%years is the length

of the firm’s of time that profits are now the resultthe of Strawson recovering the brothers have value in waste

the electricity use of the farming and property development businesses was driven by their commitment to produce energy from renewable sources. “We are a traditional farm business that has been established in the region for around 70 years and wanted to secure our long term energy production at a time when future energy resources are looking increasingly uncertain,” says Paul Strawson, director of M F Strawson.

Minimising the impact Darren Edwards, partner at Fisher German, advised on the feasibility, planning and construction process to minimise the impact on local residents and businesses. He also dealt with the stakeholder consultation, planning and turbine procurement. Concerns expressed by Ofcom and the British Horse Society were allayed by Darren, who also ensured that M F Strawson’s requirements were not in any way compromised throughout the build. “We received very few objections to the project, which allowed us to push ahead with the development and reduce our carbon footprint,” explains Paul. Establishing the best location for the turbine was key to the project’s success and Darren worked closely with the farmers to determine the prime location

farmed in the area

and throughout the build to ensure that all project milestones were met. “We faced many development challenges along the way due primarily to this being a groundbreaking project within North East Lincolnshire. I am delighted to have worked with M F Strawson on this project and to have enhanced their green credentials as a longstanding business in the area,” Darren adds. In such a complex and challenging build it is essential to keep all the key stakeholders, such as the Highways Authority and the turbine supplier, informed of the project’s progress and to maintain close contact post planning. The project was completed in just over six months, a remarkable achievement for such a complex build. A viable grid connection for 500kVA is now secured and a Turbine Supply Agreement is now in place. In fact, the project is proving to be such a success that Darren is already working with the Strawsons on a second build on another of their farms.

For further information contact Darren Edwards on 01858 411236 or email darren.edwards@fishergerman.co.uk

The turbine … will provide a long term energy solution to the business”

Rapid progress: the turbine build was completed in just six months

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A farm for all

seasons Willows Farm Village in Hertfordshire just gets bigger and better every year. Andrew Wolfe explains how an unusual business partnership has helped drive the farm to success

nyone visiting Willows Farm Village can see why it was awarded Farm Attraction of the Year in 2011. Set in 450 acres of Hertfordshire countryside, the attraction promises a spectacular day out with a huge variety of activities to choose from including farmyard animals, an adventure playground, indoor soft play centre, falconry displays and a tractor ride. An additional 400 acres are home to two fishing lakes and a plantation of more than 6,000 trees. Willows Farm Village is the largest farm attraction in the UK in terms of footfall – it welcomed 450,000 visitors over the last 12 months. Andrew Wolfe, the tenant farmer along with his wife Anna, believes that a great deal of its success is due to the innovative and successful business relationship that he has developed with two joint partners, one of whom, unusually, is the landowner.

A resounding success The Wolfes moved to Willows, which is set on the Tyttenhanger Estate, in 1997 to manage the business for the previous tenant farmer. Upon the tenant’s retirement in 2001 the Wolfes, along with the former tenant’s family, took on the tenancy of the estate on the advice of Henry Sale of Fisher German. Willows Farm Village was then launched in 2002 as a joint venture with a partner from Warwickshire. The business relationship, with Henry representing the landowner, has been a resounding success. In 2007 Henry facilitated a further, more complex deal whereby the Wolfes and their shareholders formed a new joint venture company with the owners of Tyttenhanger Estate. “Henry showed great foresight

Lambing time is very popular

The Easter Bunny visits Willows

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client case study – rural management

in constructing the deal – he could see the benefits for all sides and ensured that the trustees of the estate appreciated how this new arrangement would be of benefit to all parties,” says Andrew. Willows Growing The venture might be Patch is unusual but is mutually educational beneficial with all three partners investing in and sharing the successes of remarkably loyal, large and, mostly, Willows Farm Village. “I have a great local customer base of over 17,000 working relationship with Henry,” members, which represents over 40 per explains Andrew. “He has tremendous cent of Willows Farm Village footfall. experience across a wide range of “Ninety per cent of our visitors live businesses and robustly challenges while within a twenty minute drive of Willows allowing the executive team to manage Farm Village,” explains Andrew. “We the business. The relationship works very pride ourselves on offering a local well for all the shareholders and provides attraction for local people.” a structure for the business to succeed.” Known to visitors as ‘the farmers A seasonal programme at Willows’, the Wolfes both trained The varied and seasonal programme in agriculture and worked in more of events offered by Willows follows traditional farming businesses before the farming calendar and, to maximise moving to Hertfordshire and launching footfall, coincides with school holidays. Willows Farm Village. Andrew’s Lambing in February is followed by an abundance of chicks over Easter and a maize maze in the summer. There is potato picking in September, the Pumpkin Festival in October with Santa’s Grotto, which extensive experience is not limited to includes a nativity story with live just practical farming expertise. He was animals, providing a festive end to the estate manager at Brooksby College in year. Leicestershire for ten years, has served In such a competitive market, Andrew as a branch chairman and headquarters’ is careful to develop appropriate delegate for the NFU branch, is a director concepts for Willows Farm Village and of Meadow Quality Livestock, a large is constantly looking for ways to improve farmers owned cooperative, and has just the experience and customer service for become a governor of a Midlands based college following eight years as a governor all its visitors. “While Willows Farm Village has been developed with children of a similar college in Hertfordshire. in mind, it is crucial that the adults are Andrew and Anna’s passion to provide kept happy too,” he says. “There are the best farm based leisure attraction many activities that families can enjoy possible for their visitors has built a together and they can bring their own food to picnic in the provided areas or enjoy tasty food in Woolly Jumpers Coffee Shop or The Farmhouse Restaurant.” Never one to rest on his laurels, Andrew is continuing to develop Willows Farm Village and is opening Willows Farm Day Nursery and PreSchool in January 2013. The venture has been developed in

The Wolfes and their shareholders formed a new joint venture company with the owners of Tyttenhanger Estate”

The spectacular Pumpkin Festival

ooo 450, visitors over 12 months

partnership with Kids Play Childcare, offering Ofsted registered childcare for children aged from six weeks to five years old. “I am a big fan of joint ventures. I don’t want to be just a landlord,” says Andrew. “Kids Play Childcare has been running holiday clubs at Willows Farm Village for several years and this is a natural progression for us both.” Andrew is hoping to build a 10,000 sq ft covered area that will enable Willows to display even more farmyard animals and offer live demonstrations and animal based shows throughout the winter. He says that Henry’s advice has been a major contributor to the success of Willows Farm Village. “We really value Henry’s input as chairman of Willows and his extensive experience means that he gives us an excellent and independent overview of how the business is performing and advises on our development plans.” As this year’s financial performance demonstrates, despite terrible weather, the business partnership with its complementary set of skills and experience looks set to drive Willows Farm Village to even greater success.

For further information contact Henry Sale on 01858 411217 or email henry.sale@fishergerman.co.uk

Santa’s Grotto is a hit with children

fisher german magazine

Friedrich Wilhelm Keyl (1823–1871)

Caveat vendor

Priceless pieces of art may be few and far between. However, it is always wise to establish the value of your possessions before parting with them, advises Nick Williams, principal of Holloway’s

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e frequently read about valuable items turning up in car boot sales and flea markets – only a few months ago a painting by Renoir was apparently bought in an American flea market for just US$7. Its happy appearance in such unlikely circumstances, however, now seems to be connected to the fact that it was stolen in 1951 from a Baltimore museum and that, sadly, will often turn out to be the case with such ‘finds’. But how often does something appear in a car boot sale simply because the seller – who has every right to sell it – has absolutely no idea of its value? While the many television programmes devoted to antiques often lead people to have an inflated idea of the value of some of their possessions – for example, a lot of people now expect anything old and Chinese to be worth hundreds, if not thousands, of

£1

The purchase price then sold for £1,700

guest article

Giuseppe Carelli (1858–1921)

pounds – it is surprising how often people casually dispose of things without a second thought as to whether they may be valuable or not.

Unearthing hidden gems Some charities now employ book specialists to sift through thousands of donated books before they go into their shops in order to ensure that a particularly rare book is not sold for a song to a knowledgeable buyer who will then make a large profit at the charity’s expense. We are not suggesting that people shouldn’t give rare and valuable things away for the benefit of others; merely that some knowledge may be needed to make sure that it is the intended recipient who benefits most from the donor’s generosity. Some years ago, a charity shop in Banbury asked Holloway’s to look at a small oil painting of a ewe and a lamb that had been found in the bottom of a bag of mixed goods donated for sale; it was by a German artist called Friedrich Wilhelm Keyl (1823–1871) and was clearly

worth a great deal more than it would ever make if sold in the shop. We offered it in a picture sale and it sold for £350. But the most salutary lesson does, predictably, come from a good old Sunday morning car boot sale at which a young couple were disposing of unwanted things found in the attic of a house they had inherited. Among them was an unframed oil painting depicting the Bay of Naples, which was bought by a regular client of Holloway’s. He brought it to us on a valuation day; the signature on the painting wasn’t immediately legible, but it wasn’t hard to work out what it was and therefore to identify the artist as an Italian called Giuseppe Carelli (1858–1921). We felt that it would make £600–700 and the client consigned it to our next sale, where, thanks largely to interest from Italian buyers generated by the internet, it sold for a hammer price of £1,700. Only after the sale did our client confide in us that he had paid just £1 for the picture! Thinking this made rather a good story, we included details of the picture and a photograph of it in a press release on the sale. The following week’s Banbury Guardian ran the story, accompanied by a large photograph captioned ‘Did you sell this painting for £1?’ This was not quite how we had intended it to be publicised, but it did serve to emphasise the danger of simply sticking everything you think you don’t want into a car boot sale without first taking some advice. It still seems inconceivable that neither of the sellers realised that this was an original oil painting that had to be worth more A Ruskin Pottery vase, 1911

than a few pounds. One lady who did think to check first was glad she had done so when she came in on a free valuation day with a car load of things destined for a car boot sale the following weekend. Everything in her car could, we felt, happily be disposed of in that way, apart from one brightly coloured vase. This was identified by one of my colleagues as by the Ruskin Pottery and kept back for a sale at Holloway’s,

Always take advice if you are in any doubt as to something’s value” where it made £1,300. Being able to tell a client what something is and, occasionally, that it is worth far more than they could ever have imagined is, of course, one of the more enjoyable aspects of an auctioneer’s life. While we are not talking about life changing sums of money, the fact remains that in these straightened times nobody wants to give away something that could have netted them a few hundred pounds. Or if they do want something to be sold for charity, they will want the charity to benefit to the greatest extent possible rather than leaving a substantial profit to be made by someone else. So always take advice if you are in any doubt as to something’s value. In short – caveat vendor!

For further information contact Nick Williams on 01295 817777 or email nwilliams@hollowaysauctioneers.co.uk

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Interesting times Banks are demanding more than just collateral from farmers keen to access todayâ&#x20AC;&#x2122;s favourable lending rates. David Kinnersley advises that a robust business plan needs to be in place

anks have the money, interest rates are historically low and the Government is keen for them to lend it to businesses. However, despite efforts led by the Financial Services Authority to stimulate lending to businesses and households, lending is expected to contract sharply this year. For many landowners, the barriers to getting loans seem higher than ever. The reality is that banks are extremely cautious and have put more controls in place. They need to prove that their customers can service the debt and not just have plenty of equity to underwrite the debt; the security of the farm as collateral is no longer enough. What lenders are looking for is consistent income generation creating a cashflow that gives them confidence that the levels of debt in the business can be serviced, along with a reasonable buffer.

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Consistency is the operative word and, of course, farming is by its nature not always the most consistent of businesses. This means that any project under consideration which requires funding will be closely scrutinised for both its short and long term potential.

Strong businesses can raise finance The good news is that UK banks are continuing to favour agricultural businesses. Increased commodity prices, and consequently profits, across most agricultural sectors during the last few years has meant that lending to strong performing and traditionally based businesses has continued. With agriculture doing better than many other sectors in the UK economy, generating cash surpluses and raising the value of estates, the banks are getting the comfort they need. Banks continue to look

favourably at lending to commercial agricultural businesses for agricultural land purchase, fixed asset expenditure and refinancing. Indeed, the Government led National Loan Guarantee Scheme (NLGS), part of a package of measures to support the UKâ&#x20AC;&#x2122;s small and medium sized enterprises, including agricultural businesses, has enabled banks to offer discounted lending rates for a range of purposes including the finance of land purchase and capital improvement projects. Increasingly the banks want to see covenants on lending linked to earnings. Interest rates will be linked to earnings before interest and taxes (EBIT) or earnings before interest, taxes, depreciation and amortisation (EBITDA) ratios. This means it is projects where consistency of cashflow is harder to demonstrate historically or project into the future where finance can become more difficult to obtain. Renewable energy projects are a case in point. It is fundamentally difficult with many renewable schemes to link responsible lending with the ability to service debt with a high degree of

GENERAL BANK lending

certainty. While many proposals involve significant expenditure, the technology is not always proven, or at least not proven in financial terms. Lenders therefore remain cautious and are often unwilling to take into account any predicted future income from the renewable energy project in assessing service ability. They want to avoid the risk of lending to businesses that find themselves in difficulty because

lending. Unless the existing business is capable of standing the debt for a prolonged period, bridging finance will often not be readily available. While it may be frustrating for those looking for finance to develop their business, lenders reasonably argue that they are not just protecting themselves but ensuring that their customers do not back themselves into corners and get into financial trouble.

UK banks continue to favour agricultural businesses” of failing technology. Consequently, lenders will look solely at the existing core business and lend on the basis of that to service the debt from the proposed renewable energy project, ignoring the income it might generate. A similar reluctance to lend can be found with other types of developmental or diversification project. An element of uncertainty or risk – especially where the projected income is required to service the debt – means lenders are likely to decline. Bridging finance is another area where the banks are holding back on their

Planning is essential What this means is that those who are planning projects requiring loan finance need to ensure their proposals are extremely well thought through, including getting professional, expert advice on all the aspects – technological, legal and financial. Fisher German is helping clients to achieve their lending requirements by providing business plans and financial forecasts that satisfy the banks’ credit teams as well as valuations before and after to show how value can change. A support function between

banks and clients to monitor projects and explain variances between budgets and actual outcomes can also be provided. The current low interest rates provide an opportunity as well as a threat. Securing lending now at current rates is attractive as the cost of borrowing is historically low and is only likely to go up – possibly before the Bank of England raises base rates. Also, when interest rates eventually go up, it could lead to less interest in farming as an investment sector and so produce a downward pressure of land prices, thereby providing a lower asset base to provide collateral. The lending environment has changed but banks still favour farming and are keen to lend into the sector. Farmers and landowners may have to work harder to access lending, but with the aid of clear and robust proposals the additional hurdles are not insurmountable.

For further information contact David Kinnersley on 01295 226294 or email david.kinnersley@fishergerman.co.uk

fisher german magazine

Post Cottage, Northamptonshire

Making the grade The benefits of owning a listed building usually more than outweigh any of their disadvantages, says Stuart Flint

wning a listed building is both a pleasure and a responsibility and, contrary to popular belief, listed buildings can be altered, extended and sometimes even demolished, subject to government planning guidance. Listing is not a preservation order but an identification stage which marks and celebrates a building of exceptional architectural or historic special interest. Fears about the costs of maintaining a listed building and restrictions with regards to its use are often unfounded, although there are often extra hoops to jump through. While consent must be applied for in order to make any changes to the building that might affect its special interest, local authorities balance this against other issues, such as its

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function, condition and viability. Authorities would prefer a building to continue to be used than be left to decay. There are around 375,000 listed buildings in England and, in general, the older a building is the more likely it is to be listed. There are three grades of listed building, reflecting the relative importance of the building in question. Grade I buildings are deemed to be of exceptional interest, often of international importance. Most of these are major public buildings, churches and stately homes. Grade II* buildings are considered to be of more than special interest and Grade II are those that are nationally important and of special interest. Some 92 per cent of all listed buildings fall into this last category and it is the most usual grade for

residential and agricultural buildings. The higher the grade, the higher the level of protection that is provided to the building. However, listed building consent is required from a local planning authority from those wishing to alter, extend or demolish a listed building of any grade in a way that affects its character as a building of special interest. That includes internal as well as external changes. It is always advisable to get specialist professional advice and to consult a conservation officer at the local authority before starting any detailed plans. Of course, most owners of listed properties are proud that their building is considered to be nationally important – that status will often increase the value of the property. In recognition of the additional costs involved in preserving the nation’s heritage, some grants are available to listed buildings for certain repairs and alterations. In addition to the maintenance obligation owners have as ‘custodians’ of these buildings, careful consideration is often given to such properties by prospective purchasers when they come up for sale. Generally, listed buildings are seen in a positive light by potential purchasers who attribute ‘kudos’ to the architectural heritage but this varies hugely between individuals and from property to property. Buyers who have

ooo 375,

listed buildings in England

residential property

Broom House, Worcestershire

Agden Hall, Cheshire

Fears about the costs of maintaining a listed building are often unfoundedâ&#x20AC;? had a poor past experience with trying to alter a listed building baulk at the thought of English Heritage intervention or the possible time delays in gaining consents. Others may be oblivious to their potential undertaking or simply disregard the ramifications, focusing on the fascinating property they seek to acquire and finding comfort in the listing status. Some historic buildings are incredibly difficult to adapt to modern living. If they havenâ&#x20AC;&#x2122;t been remodelled in the past, harmoniously or not, they may prove very difficult to sell where major alterations will be necessary to create a residential property fit for 21st century living. There may be no alternative uses for the building creating a conundrum where a disposal is desired. In these instances, early presale consultation with the local conservation officer is advised and possibly listed building consent sought for modifications to create a reasonable target audience. In percentage terms, the numbers of listed buildings are relatively small. But given our market positioning Fisher German is consistently dealing with the sale of listed buildings of all shapes and sizes.

The Grey House, Derbyshire The Bass Wing, Staffordshire

For more information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

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Bowled over by success A great team effort has resulted in a spectacular new cricket pavilion at Barkby Village, combining the club’s heritage with outstanding new facilities

ew things are more quintessentially English than a village cricket match, at least in the mind of many a tourist: gentlemen in whites playing cricket on the green before retiring to the club house for afternoon tea. However, while the sport might have its roots fixed firmly in the 17th century, the role it plays in village life is very much based in the present with an eye on the future as the splendid new cricket pavilion in Barkby Village illustrates. Mr John Pochin, owner of the Barkby Estate, has played a key role in rebuilding the village’s cricket pavilion and transporting it into the 21st century. While Barkby Village has been host to a local club since 1850, its fortunes have

which had to be removed prior to play, including their ‘calling cards’. Over the years this situation was gradually improved, mainly by fencing off the entire ground, and also by extending the pavilion to provide better changing and washing facilities and secure accommodation for mowers. During this time the youngest members were coached to better and better standards, with excellent results, forming a good basis for the club’s future. Barkby’s fortunes were invigorated in more ways than one and the club started to climb up the county league table. However, its facilities still left a lot to be desired and were both outdated and unsuitable for a modern day cricket club. Initially it was decided that a programme

Barkby’s progression to the Leicestershire Premier League meant that a modern pavilion was essential to the club’s future” varied over the years. During the 1970s, the club fell on hard times, there was no money in the kitty, membership had fallen, and its constitution did not allow play on Sundays. Club officials met Mr Pochin’s father with a view to closing the club. However, he donated some money, and more importantly gave them permission to play on Sundays. In the 1970s the club house was a fairly spartan wooden building with just a couple of changing rooms and a veranda. The cricket pitch itself was fenced off, while the outfield remained open to a herd of cattle,

30% 28

The reduction of the total building costs

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of renovation and repair to the existing wooden structure was the best plan of action. However, Barkby’s progression to the Leicestershire Premier League meant that a modern pavilion was essential to the club’s future.

Community spirit “The pavilion was very sad around the seams and its days were numbered. There were various schemes to renovate the club house but they kept getting grander and grander and more and more costly,” explains Mr Pochin. Eventually Mr Pochin, with the assistance of club chairman John Lee, and substantially aided by another key club official, organised the build of a new pavilion. The club itself undertook to raise £25,000. Significant savings were made by using the joinery business of yet another club member, James Storer, who project managed the whole scheme

as well as constructing the new building. Securing the help of club members, not only in site clearance and building, but also for additional fund raising, is a very important factor to Mr Pochin, as it is to John Palmer of Fisher German. “It took just nine months and involved creating a new access, home and away rooms with showers, new WCs, catering facilities and electronic score boards. The new facility means that we can hold functions and continue fund raising. It’s been a tremendous success and the cricket club plays an important role in the village community. I was very pleased to open the pavilion,” says Mr Pochin.

Tradition reborn “The youngsters in the village are really benefiting from the facilities both socially and health wise and the setting of the club house is stunning. There is a herd of cows to one side of the road and the pavilion to the other. It is a traditional English setting and part of our heritage,” he adds. Although the club house is nearly three times the size of the original building, it is in keeping with the original pavilion. This was very important to Mr Pochin who worked closely with Andrew Nourish of Fisher German on the design and always insists on high quality buildings across his estate. “We didn’t want it to look too different so we incorporated a veranda and broke up the roof of the club house with the electronic score board. Little details have helped the pavilion to blend into its surroundings,” explains Mr Pochin. The state of the art pavilion is testament to the dedication and hard work of Barkby residents and highlights the fact that the village has a truly first class team in more ways than one.

For more information contact John Palmer on 01858 411216 or email john.palmer@fishergerman.co.uk

client case study â&#x20AC;&#x201C; COMMUNITY INVOLVEMENT

Clockwise: Fisher German team photograph; the splendid new pavilion; a wonderful setting; and the action.

fisher german magazine

years The time frame for loans

Down to earth F

armers and landowners face unique financial challenges which often mean that access to financial loans can make or break their businesses. While banks have historically seen agriculture as a safe sector to lend to, finding the most suitable loan at the best rate to improve or diversify a business can be a challenge. However, help is at hand from Agricultural Mortgage Corporation (AMC), specialists in providing mortgage finance for land based commercial businesses and currently offering highly

competitive and reasonable rates to farmers looking for finance. Founded in 1928 to lend exclusively to the agricultural industry, AMC is now responsible for 30 per cent of the sector’s medium to long term lending and provides loans developed specifically to meet the needs of farms and rural businesses. The recent fall in the cost of funds, combined with the impact of various Government sponsored lending schemes, has meant that AMC has significantly reduced its pricing. The current deals available for borrowing, including fixed rate loans, are highly favourable due to significant reductions in lending margins. The finance deals on offer • term funding: five years or more. Standard loans only, flexible facility not included from AMC can be further • discounted rate: 0.65% below AMC normal pricing for improved with the European the first 10 years Investment Bank (EIB) • rate type: base rate linked or fixed interest rate discounted rates for loans • repayment options: interest-only or repayment other than land purchase. • availability: funds must complete by December 2013 AMC has negotiated access to a multimillion pound fund

Details

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provided by the EIB aimed at stimulating investment and job creation in small and medium sized businesses, including farming. Borrowers eligible for the EIB scheme will receive a significant discount of 0.65 per cent off AMC’s normal loan margin and the range of investments that the discounted funds can be used for is extensive.

Valuable opportunity The discounted loans provide an opportunity for farmers who are considering expanding or investing in improving farm efficiency to access favourable loan rates at a time when interest rates are already historically low. A loan can be an important tool in helping reduce the effects of price fluctuations and mitigate the likely reduction in Single Payment income, as an AMC spokesperson explains: “A ten year fixed rate at today’s cost of funds may be a very good option for a customer who is looking to control costs as well as to refinance

FOCUS ON AMC lENDING

The wide range of loan purposes vary from buildings and equipment to vehicles and renewables

loans AMC is currently offering highly competitive and reasonable rates to farmers looking for finance” some hard core debt.” However, loan applicants need to act quickly to access the preferential rates available. Borrowing is for a minimum of £25,500 and application for the loans must be completed by December 2013. The discount is available on loans of up to ten years for projects that have a definite start and end date. AMC will subsidise loans for a wide range of farm improvement and diversification projects including building works and livestock housing, machinery and equipment purchases, farm shops,

Farmers and landowners looking to diversify their businesses should consider the favourable loans currently available from AMC

milking parlours and farm energy schemes. Farmers with a particular project in mind who want to make the most of the offers from AMC should get in touch with Fisher German as soon as possible to discuss their individual requirements. Funds available at the discounted rate are in limited supply so anyone interested should act sooner rather than later. There are some eligibility criteria that must be met and each case will need to be discussed with AMC on a proposal by proposal basis. The funding offers a real financial boost at an important time for many farm businesses and it is worth considering how your farming business could benefit from such a loan in the long term.

For more information contact Tim Shuldham on 01777 860755 or email tim.shuldham@fishergerman.co.uk

Example lending purpose The following are examples of loan purposes that will qualify for the discounted rates. The range of loan purposes is wider than the examples shown so applicants need to check with AMC on a proposal by proposal basis. • buildings: general purpose shed, hay/straw storage, livestock housing, grain store, potato store, chicken sheds, milking parlours • equipment: grain drying, robotic milking equipment, milking parlour equipment, chicken shed equipment, vegetable processing lines, milk processing equipment • vehicles: tractors, combines, potato harvesters, lorries • renewables: photovoltaic panels, wind turbines, water turbines, anaerobic digesters • storage: reservoirs, slurry store • general: opening or expansion of a farm shop, orchard establishment, dairy cows, purchase of wholesale business (max £1m), farm field draining, research and development

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Sector insight Continued expansion

Cornerstone to the economy

Positive progress

Stuart Flint, head of property agency

David Merton, head of rural consultancy

Richard Benson, head of planning & construction

The year 2012 has generally been a year to forget for the residential property market (that is, outside London and the Home Counties) with stagnated prices and transactional volume levels at a low point not seen for more than three decades. While Fisher German can report a pretty good year, with some excellent market share increases as part of our continued expansion in the agency sector, it has been very hard work indeed. Most buyers are incredibly fickle, and often lethargic, but there remains a great shortage of stock, and it is this restricted supply that has held the market back. It is too early to tell but there seem to be some genuine signs of intention to move in 2013 that point to significantly greater activity next year. I pray for a swift winter! In contrast, the agricultural land market remains buoyant and some dramatic prices have been produced for clients this year on blocks of all sizes. Again, limited supply has frustrated buyers and led to some highly competitive bidding. The story looks set to be repeated next year.

Every day sees a further impact on the rural economy whether it is positive or negative. These are, in the main, influenced by factors outside its control whether international, national or regional. There can be no other industry that has so little control over its profitability. At the commencement of the operation being, for example, cereals or livestock the end result by way of sale is neither assured nor agreed and is dependent on trends and the world economy. This is so different to the majority of industries which have a clear cost structure and, in many cases, an agreed sale price for the product on its commission. Add to that, other day to day issues such as the Government’s decision to postpone the trial badger cull for practical reasons, along with very serious implications of the ash tree disease, Chalara fraxinea and its impact, one sometimes wonders what the positives are for the rural industry. The sector will always be a cornerstone to the British economy and a way of life, defining what is good about Britain.

The recent party conferences illustrated that construction is moving up the political agenda. Minister for Business Michael Fallon has threatened to name and shame banks that won’t lend and Government departments will be under pressure to procure efficiently. The Government Procurement Service is striving to ensure that professional services work is awarded to SMEs. The development market is also under scrutiny with councils being lambasted for insisting on too much red tape and bureaucracy. Two of the Government’s latest proposals to resolve these issues include: the relaxation of residential permitted development rights, which will allow larger household extensions without formal consent; and time extensions for planning permissions that have not been implemented. We await formal confirmation of these proposals in the hope that they will ‘make a difference’. Planning applications involving the five year housing land supply argument continue to dominate the development sector, jumping the traditional local plan allocation route for securing large scale residential sites. Any land on the edge of towns and villages should be regularly reviewed to ensure opportunities are not overlooked. We are reviewing a number of large property portfolios, acting for developers as they activate previously dormant sites, and land promotion work is rocketing. We have also been instructed by the Education Funding Agency to prepare condition reports on schools throughout the Midlands.

For further information contact Stuart Flint on 07501 720422 or email stuart.flint@fishergerman.co.uk

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For further information contact David Merton on 01530 410806 or email david.merton@fishergerman.co.uk

For further information contact Richard Benson on 01530 410825 or email richard.benson@fishergerman.co.uk

sector spotlight

Fisher German’s sector heads look forward to what 2013 holds in store for the firm and its clients

Careful consideration

Continuing investment

Renewables power up

Kevin Benson, head of commercial

Andrew Bridge, head of utilities & infrastructure

Mark Newton, head of renewable energy

This issue we are focusing on is telecoms as EE – the owner of the T-Mobile and Orange mobile brands – is launching its 4G mobile service across 16 cities by the end of 2012, with 98 per cent population coverage by 2014. It will be the first operator to roll out 4G with others following in 2013. Also, EE’s main rivals, O2 and Vodafone, have gained Ofcom approval to launch a new core grid that combines their existing network infrastructures. Landlords with mobile phone masts should now be considering carefully: a) any applications received to assign leases into joint names with other mobile phone operators; and b) applications received to install equipment in excess of permitted equipment rights. Where such applications are received, a one off premium and/or additional rental payments plus a modernisation of the lease terms is reasonable. Where landlords have masts separately let to T-Mobile and Orange or Vodafone and O2, landlords are also at risk of one of the masts being decommissioned as they seek to consolidate two into one and should treat, with caution, applications received to assign or share leases. Landlords in such situations should also carefully consider termination notices as, quite often, the operator will contractually not have the right to break the lease.

Asset owners continue to invest in their infrastructure, driven by legislative commitments and refinements in technology utilised to measure stress points or potential defects. Alongside this ongoing maintenance and management plan, strategic reviews are taking place to establish the future use for their assets. As the energy market evolves, the infrastructure used to transmit and store the end product mix has to be fit for purpose and suitably geographically positioned. Renewable energy sources and new methods of extraction of existing energy sources may reinvigorate sites previously mothballed or, alternatively, lead to upgrading sections of network to deal with the increase in requirements. In conjunction with this, maintaining the integrity of apparatus remains key to the success of the sector, with safety featuring highly in most discussions from board level to subcontractors on site. All persons involved with the sector, be it the multinational utility PLC or a ditching contractor working in a farmer’s field, have to work in harmony to protect not only the asset, but also the environment and their own personal wellbeing.

Surveys have revealed that 30 per cent of farmers and landowners are now either involved in or have built a renewables project, so what new developments are expected over the next six months? Solar PV, the big growth market 12 months ago, with a large number of commercial and domestic projects being built, is fading in popularity as the Government’s reduction in Feed in Tariffs has meant returns are down to 8–10 per cent, despite a 250 per cent reduction in the price of panels. While this dramatic fall in the cost of panels and double ROCs rejuvenated the development of large solar parks, this renaissance may be short lived as the Government proposes to reduce its support. With returns of 15–20 per cent possible, single onfarm wind turbines are showing the biggest growth in the renewables market. However, gaining planning permission is a major problem – it can also be costly and lengthy for larger wind turbines. On a smaller scale, compared to wind and solar, hydro and AD plants are seeing gradual growth. The new big growth area is renewable heat. Currently restricted to commercial projects, the domestic property sector is set to grow significantly as house owners replace their old inefficient oil boilers with wood chip boilers and receive renewable heat incentives, which are due to come in summer 2013.

For further information contact Kevin Benson on 01777 719148 or email kevin.benson@fishergerman.co.uk

For further information contact Andrew Bridge on 01530 410828 or email andrew.bridge@fishergerman.co.uk

For further information contact Mark Newton on 01858 411215 or email mark.newton@fishergerman.co.uk

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Sector directory Contact details for Fisher Germanâ&#x20AC;&#x2122;s 14 national offices St Helens Phone 01744 451145 sthelens@fishergerman.co.uk Rainford Hall Crank Road WA11 7RP

Chester Phone 01244 409660 chester@fishergerman.co.uk 4 Vicars Lane CH1 1QU

Knutsford Phone 01565 757970 knutsford@fishergerman.co.uk 2 Royal Court Tatton Street WA16 6EN

Stafford Phone 01785 220044 stafford@fishergerman.co.uk 2 Rutherford Court ST18 0AR

Worcester rural Phone 01905 453275 worcester@fishergerman.co.uk 2 Birch Court Blackpole East WR3 8SG

Worcester agency

Bromsgrove

Phone 01905 726220 worcesteragency@fishergerman.co.uk City Wells House Sidbury WR1 2HZ

Phone 01527 575525 bromsgrove@fishergerman.co.uk 8 New Road B60 2JD

sectors and underlying services

commercial

planning & construction

property agency

renewable energy

landlord & tenant property management sales & lettings telecommunications

applications & appeals architectural design building surveying development & promotion environmental management project management

auctions development equestrian estates farms and land residential

anaerobic digestion biomass eco friendly buildings hydro solar pv wind energy

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sector spotlight

Retford Phone 01777 709943 retford@fishergerman.co.uk 21 Exchange Street DN22 6BL

Ashby de la Zouch Phone 01530 412821 ashby@fishergerman.co.uk The Grange 80 Tamworth Road LE65 2BY

Newark Phone 01636 642500 newark@fishergerman.co.uk 12 Halifax Court Fernwood Business Park Cross Lane NG24 3JP

Market Harborough Phone 01858 410200 harborough@fishergerman.co.uk 40 High Street LE16 7NX

Hungerford Phone 01488 662750 hungerford@fishergerman.co.uk The Cuttings 120 High Street RG17 0LU

Banbury Phone 01295 271555 banbury@fishergerman.co.uk 50 South Bar OX16 9AB

rural consultancy

utilities & infrastructure

compulsory purchase estates expert witness farms rural valuations sporting

electricity fibre optics gas Linesearch.org oil & chemicals water

Thame Phone 01844 212004 thame@fishergerman.co.uk 17 High Street Thame OX9 2BZ

For more information visit:

www.fishergerman.co.uk

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080 0 1075522 www.fishergerman.co.uk