Property Health Check by fishergermanllp

Property Health Check

Review your property, protect your interests and enhance your assets. For most of us our house is not only our home but also our principal financial asset. This asset needs to be carefully protected to retain its intrinsic worth. There may also be lucrative opportunities to enhance its value. The definition of ‘property’ is of course not restricted simply to the bricks and mortar of the house, but encompasses gardens, grounds and land, plus outbuildings and other ancillary accommodation. These additional elements may also provide current and future opportunities to enhance value, improve enjoyment and to increase future saleability.

Working together in your best interests Fisher German is a leading property consultancy whose experienced professionals offer a range of advice that could protect and enhance the value of your property. We are offering a review service to property owners to help ensure that they are well positioned to meet any upcoming challenges and to maximise the value of their home. Such challenges may relate to the day to day management of a property, the transfer of property to a future generation, a possible sale within the next few years or perhaps refinancing. The aim of this ‘Property Health Check’ is to protect and enhance value.

undertaken. We look at the possible need to investigate any building defects and, most importantly, assess ways in which capital or rental value may be improved. By identifying such issues, we hope to assist you, possibly working in conjunction with your other advisors to minimise future difficulties. If not addressed at an early stage, these difficulties can have a detrimental effect on both the value and day to day running of your property.

The Property Health Check may highlight some administrative property issues, or the need to explore potential legal matters which often come to light when a transaction of some kind is

Please note the Property Health Check is not a formal valuation or a building survey and should not be relied upon as such.

The Property Health Check includes: Title and boundary issues • Is your property registered with the Land Registry? If not, why not? • A re the boundaries on the ground reflective of your Land Registry title and/or title deeds? • Has your neighbour adversely registered any part of your land? • Have you checked your title deeds to ensure that there are no restrictions? • A re you at risk of neighbours claiming rights across your property? • Do you own the mineral or sporting rights on your property? • Is your property affected by any restrictive covenants?

Building Works and Regulation • Have you carried out any alterations to your property and where required, have you obtained appropriate building regulation consent? • A re you aware of the implications of ownership of a listed building? • If you have private drainage, do you know where your septic tank discharges to? Is it compliant with current legislation?

Rights of Way, Easements and Wayleaves • A re you aware of all the third-party rights which affect or benefit your property e.g. public and/or permissive footpaths? Do these follow designated routes? • Do you have services that cross or benefit your land and are these adequately documented and regulated? • A re you collecting payments due to you for utility apparatus?

Tenancy and occupancy • If you allow the use of your property by a third party, is it adequately documented? If not properly documented, it is possible that an occupier will be able to claim possession/rights. • A re you protected against unlawful occupation of your property? • A re you receiving appropriate remuneration for the arrangements? • A re these arrangements structured appropriately to optimise financial planning?

Land Management • Is your property located in a flood risk zone? • Are you aware of tree preservation orders, public rights of way and other environmental designations which effect your property?

Planning • It is important to ensure that your property has the benefit of appropriate planning consents and these are adequately complied with. • Are you in a conservation area? • The value of many properties can be enhanced through identifying planning potential and securing permission for extension, conversion, new plots and change of use.

Sample case study one

HOME FARM

Fee: £900 + VAT

A detached farmhouse, a range of farm buildings, a let cottage and approximately 40 acres of arable land and 20 acres of permanent pasture. The client’s long term aspirations are to pass the Property on to their only daughter and her family.

The Health Check inspection highlighted six key opportunities/threats. 1) The neighbouring farmer’s sheep were grazing some of the client’s land, but the occupation was undocumented. 2) Our client explained that they have had continual problems with trespass and members of the public not sticking to proper Rights of Way. 3) One parcel of land abutted the nearby village, our research showed that the Local Plan had identified the subject village to be a settlement where future expansion might be considered. 6

4) We checked the online domestic register and discovered that the cottage did not have an Energy Performance Certificate (EPC). 5) There were two large trees to the rear of the garden, an online search identified the trees to have Tree Preservation Orders (TPO) in place. 6) We highlighted several areas where the tax position of the Property could possibly be improved.

We recommended six courses of action to protect the client’s interest and enhance value. 1) We recommended that the occupation of the grassland was documented via a grazing licence to help prevent a claim for a tenancy arising and we suggested some key heads of terms for the licence. 2) We advised that a statement and declaration under Section 31(6) of the Highways Act 1980 is submitted, to stop the clock and prevent new public rights of way accruing through long term use. 3) We explained the different options available for developing the land; self-promotion, option agreement or promotion agreement. We recommended a meeting took place with the Fisher German Development Team to discuss development potential in further detail.

4) We explained the implications of the Minimum Energy Efficient Standards (MEES). We recommended that an EPC assessor undertook an inspection to determine the EPC banding of the cottage. This would in turn confirm compliance with the standards, or otherwise. 5) We explained the significance of a TPO and the restrictions and rules which are in place if they wished to undertake works to these trees. 6) We recommended that the client engaged with his accountant to discuss the current tax position of the Property, and in particular the areas we highlighted during our inspection.

Matters Arising

Benefits

Fisher German’s Rural team have agreed terms and prepared and issued a grazing licence for the pastureland.

The occupation has now been formally documented, so all parties are clear on the position, the agreed terms and each parties’ responsibilities and rights. This should help prevent any future disputes arising between parties, due to unclear parameters. Documenting the grazing licence will also help prevent a claim for a tenancy arising.

The client took our advice and they have since instructed Fisher German to submit a Section 31(6) statement and declaration under the Highways Act 1980, on behalf of the Landowner.

The clock has been stopped to prevent new rights of way being created through long term public use. If no action had been taken, new rights could have been achieved, which would have inevitably had a detrimental impact on the value of the Property.

The Fisher German Strategic Development Team have been instructed to find a development partner for the land adjoining the village.

Fisher German have expertise and experience in this area and will ensure a reputable partner is obtained on competitive terms. Fisher German will work together with the client’s other professional advisers to ensure the client is best represented.

The client has met and discussed the tax position of the Property with his accountant and subsequently we understand that some restructuring of the farming/occupation arrangement of the land has been made.

Considerable improvements have been created in respect of taxation including Capital Revenue, Inheritance and Value Added Tax.

Sample case study two Smallholding in Derbyshire

Fee: £700 + VAT

A detached farmhouse, two holiday cottages, outbuildings, manège, and grazing land. In all approximately 9.22 acres.

The Health Check inspection highlighted six key opportunities/threats. 1) The property’s outflow from its septic tank drains into a nearby brook. 2) We identified an opportunity to capitalise a payment for electrical apparatus on the land. 3) We noted potential in one of the buildings for possible residential expansion. 4) We established that the client did not have a valid planning consent for the manège. 5) Through discussions with the client, it was clear that their maintenance obligations if any, of an access track to the property was unknown. There were also other covenants on the title which the client was not clear on. 6) No independent right of way was provided to the grazing land. .

We recommended five courses of action to protect the client’s interest and enhance value. 1) We explained the new Environment Agency General Binding Rules and recommended a drainage specialist attended site to discuss any required changes needed to the drainage system.

4) We recommended retrospective planning consent was applied for the manège. We also explained that depending on how long the manège had been in situ they could be eligible to apply for a Certificate of Lawful Development instead.

2) We advised that initial conversations were entered into with Northern Powergrid over capitalising the wayleave payment for the electrical apparatus and instead negotiating a one-off capital payment.

5) We advised that our client reviews their title documents in detail to clarify any maintenance liabilities in respect of the access to the property. We also suggested that the client may wish to consider taking out a Restrictive Covenant insurance policy to insure the possible risk of a third party enforcing any of the covenants on the title.

3) We recommended that in the first instance a structural survey of the building is undertaken to see if conversion to residential use would be feasible. If suitable, measured plans could then be drawn up.

Matters Arising

Benefits

Fisher Germans Building Consultancy Team have been asked to quote for a structural survey of the building being considered for residential expansion.

The client will be clear on whether the conversion is structurally feasible and whether they in turn could proceed with investigating planning potential. By obtaining planning permission the client would be adding value to an asset which is not currently being utilised.

Fisher German have been asked to proceed with negotiations with Northern PowerGrid over capitalising the wayleave for the electrical apparatus on the land.

The client is happy with the presence of the electrical apparatus and it is not hindering the use of the property, therefore instead of receiving small annual payments, a one-off capital payment could instead be more useful to the client.

The client quotes:

‘

Forewarned is forearmed’ is how my psychology works. With that in mind recently I commissioned a Property Health Check from Fisher German. It was time and money well spent. If I were to consider a sale in the future, I would ideally like to anticipate or remove any likely ‘gremlins’ for when the time comes. The exercise did this very effectively. It confirmed and clarified some thoughts that I had regarding land access, buildings’ planning and septic tank replacement. The process also proactively identified some options and opportunities that I hadn’t considered, for example capitalising wayleave agreements with utility suppliers. The exercise was, for me, very reassuring. It has helped me to prioritise the essential tasks and has provided me with a clear roadmap for the future.’

Ashby de la Zouch

Banbury

Bedford

Birmingham

Canterbury

Chester

Cwmbran

Doncaster

Exeter

Glasgow

Head Office

Hereford

High Wycombe

Hungerford

21 8 15

Knutsford

London

Market Harborough

Newark

1 11 17

4 25 12

Newcastle

Richmond

7 14

Rossendale

Stafford

Southampton

Thame

Worcester

16 5

23 9

Get in touch… The Property Health Check is a national Fisher German initiative. Your Property Health Check will be undertaken by qualified Chartered Surveyors and your key Bedford Office contacts are:

Molly Dickson MRICS FAAV

Rebecca Ruck Keene MRICS FAAV

Rural Surveyor

01234 827119

01234 827118

molly.dickson@fishergerman.co.uk

rebecca.ruckkeene@fishergerman.co.uk

Other Property Services from our Bedford office: Melissa Balk MRTPI

Simon Patrick MRICS

Planning

Commercial

07810 752115

07887 594684

melissa.balk@fishergerman.co.uk

simon.patrick@fishergerman.co.uk

Paul Brown MRICS

Matthew Ayres

Building Consultancy

Agribusiness

07974 954998

07718 524823

paul.brown@fishergerman.co.uk

matthew.ayres@fishergerman.co.uk

Ben Marshalsay

Matthew Allen MRICS

Development

Agency

07771 974322

07810 378190

ben.marshalsay@fishergerman.co.uk

matthew.allen@fishergerman.co.uk

Stephen Rutledge MRICS FAAV

Darren Edwards MRICS

Valuations

Sustainable Energy

07919 693401

07918 677571

stephen.rutledge@fishergerman.co.uk

darren.edwards@fishergerman.co.uk

fishergerman.co.uk