IN THIS ISSUE
THE FORMALITIES
!"
FOREWORD A letter from our Founder, Matt Siddell
HERITAGE
!# DUTTON HOMESTEAD By Emma Morby
PROPERTY
$! MARKET Doug
By Gary Hersham
Energy, tells us about his pioneering Jersey hotel development with ultra low energy ambitions on p. 52.
ISSUE NO. 18
Johnson, Founder of Mesh
INTERIORS
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PROPERTY FINANCE
#$ By Roxana Mohammadian-Molina
By Holly Gannon
## ARCHITECTURE By Jake Pearlman
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By Michael Bristow
By Giovanni Patania
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By George Ttouli
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By Lee Langley
MEMBER PROFILE
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COVER: ENERGY
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By Doug Johnson
FOREWORD _______________________________ Qandor Founder Matt Siddell Partner, Head of Content & Marketing George Le Roux Partner, Head of Membership Simon Podd Events & Publishing Manager Tess Lawson Photographer/Videographer James Evans Membership Manager Jordan Brown _______________________________ For editorial and advertising enquiries, please email: magazine@qandor.org Visit our website www.qandor.org Contributors Doug Johnson Emma Morby Gary Hersham George Ttouli Giovanni Patania Holly Gannon Jake Pearlman Lee Langley Mike Bristow Ricky McLarnon Roxana Mohammadian-Molina _______________________________ Legal Qandor Ltd does not endorse any of the members or contributors to this publication. Always seek your own independent advice prior to investing or agreeing terms of business.
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It is a fact that the built environment contributes to around 40% of the UK’s carbon footprint. Whilst many developers already know this and have been actively finding ways to decarbonise their developments and front-run a future demand in sustainable homes and commercial buildings, conversations at COP26 in Glasgow will hopefully accelerate the pace of change. Qandor members ahead of the curve include Doug Johnson of Mesh Energy. We can read on page 52 how he worked with a pioneering hotel developer in Jersey to optimise sustainable building practices and deliver against ultra-low energy ambitions. Meanwhile, Giovanni Patania talks to the benefits, limitations and challenges of undertaking sustainable retrofitting of commercial buildings in his article on page 44; whilst Mike Bristow of Crowd Property, notes how ESG is having an increasing impact from a lending perspective (p. 70). Changing tack, I must say it’s been fantastic to be able to share a drink and some good times with many of you at both the recent Diwali Dinner and Christmas drinks (see photos on page 86) and hear how you’ve learnt, adapted and even prospered after yet another challenging year. It’s so heartening to see that your appetite for meeting and engaging with each other remains strong. Please be rest assured that we will continue to adapt and strive to ensure our role as a quality connector and a place of learning for our members continues to evolve. Wishing you all a Merry Christmas, a much-needed break and prosperous 2022.
M! Sidd" Matt Siddell Founder
HERITAGE PROPERTY
DUTTON HOMESTEAD EMMA MORBY Director of Land Acquisition Heritage England www.heritageengland.co.uk
If jaw dropping beauty is what you are looking for, then this property has the wow factor! The property is steeped in history and dates 006 – Qandor – Issue No. 18
back to the 14th century. It started life as a hunting lodge for Edward III’s son and then became a farm house, but by 1903 it was derelict. In 1907 Lord Dewar bought and restored The Homestall, added a substantial service wing, remodelled the gardens and bought in two farms to the north to create a grand estate.
HERITAGE PROPERTY
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Lord Dewar died in 1930 and left the estate to his nephew who married in 1932, and soon after his wife declared the house was not big enough for the lavish entertaining that she had in mind. He bought Dutton Hall, a large Tudor manor house in Cheshire dating from the 1580s, had it dismantled and then rebuilt alongside The Homestall. The grander and 012 – Qandor – Issue No. 18
much larger house became known as Dutton Homestall. During the Second World War Dewar offered the house as an auxiliary hospital to the nearby Royal Victoria Hospital. During the 1950s the house was bought by the owner of The Brunswick School and then in 1965 Stoke House School joined and amalgamated to become The Stoke Brunswick School.
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HERITAGE PROPERTY
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understood to be over
The school closed in 2009, and since then the house has fallen under private ownership. The house is full of character, with an Entrance Door understood to be over 1000 years old and from a monastery in France. There is original flagstone flooring, a stunning Baronial Hall open to full height with wonderful timberwork, a Central Hall with a carved wood ceiling believed to come from the last man of war to sail into battle. To add to its age, there are also carved stone fireplaces with the inscription “This being made in the year of our Lord 1585”. These are only a handful of amazing historic features hidden within this beautiful home. The property is set back from the road with a long driveway and has approximately 3 acres of private garden. This 6/7 bedroom home also has a golf course, a swimming pool and tennis courts for those who enjoy the outdoorsy activities. Inside the property there are a further 2 studies, kitchens and a cellar. If seclusion and history are what you are looking for then, this property really is the perfect match and will set you back a cool £2,900,000. Q. 018 – Qandor – Issue No. 18
PROPERTY
ST JOHN’S WOOD – PRIME CENTRAL LONDON’S EVERGREEN GROWTH MARKET GARY HERSHAM Founder Beauchamp Estates www.beauchamp.com
St John’s Wood, the leaf y residential enclave immediately north of London’s Regent’s Park, has proven to be a resilient and increasingly ‘evergreen’ star of London’s ultra prime property market, experiencing increases in values and volumes. 020 – Qandor – Issue No. 18
Popular with people of all nationalities who appreciate its relaxed urban village lifestyle, proximity to good schools and historical and leafy features, St John’s Wood is finding new and increasing relevance and value in a much-changed world.
The latest market research report from Beauchamp Estates reveals that St John’s Wood has unexpectedly benefitted from the pandemic pandemonium that has hit many of the world’s prime property markets hard. House sales in the leafy prime central London market have increased by 41% in volume and 12% in value (year on year). The in-depth report looks at the history of St John’s Wood, its appeal, the performance of the property market, sales and lettings, over the last 10 years and compares its performance to both Mayfair and Knightsbridge. Interestingly the price premiums per square foot for both areas remain high at 69.3% and 57.6% respectively, yet St John’s Wood has outperformed both areas in terms of average year-on-year price
growth at +9.8%, compared to average price decreases of -7.2% and -6.3% respectively. What is clear, in all three markets, is that there is a very clear divide in performance between the sale of apartments versus houses. As buyers have experienced changes in their domestic arrangements, driven by the pandemic, such as home schooling, home working, quarantine and have generally seen the amount of time spent at home (inside and outside) increase, many have reviewed their needs, placing greater importance on internal space (volume) and access outside space, ideally private.
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PROPERTY
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The apartment market in all three areas has seen a decrease in volumes and values, particularly in Knightsbridge, with sale volumes down -25.8% year on year and where there is a greater reliance on international buyers who have been absent from the market due to international travel restrictions. In comparison St John’s Wood apartment volumes were down only -14.1% and Mayfair -7.4%. The picture for house sales is quite a different view where volumes in Mayfair, Knightsbridge and St John’s Wood were up year on year, +14.3%, +11.5% and +41% respectively, with only St John’s Wood recording a price per square foot increases at +12.1%.
Despite there being generally fewer houses available in Mayfair and Knightsbridge, making volume analysis sensitive, there is little price premium on a cost per square foot basis for houses over apartments, something that does not hold true in St John’s Wood, where the premium per square foot for houses can be as high as 45%. This extraordinary increase in premium is driven predominantly by the size of plot on which a house is located and access to both outside space and private outside space: something that has been a key performance driver in the market in general. The larger houses in St John’s Wood (many found on Avenue Road, Cavendish Avenue (West Side), Acacia Road and Hamilton Terrace) come on exceptionally large plots, far greater than comparable
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“The latest market research report from Beauchamp Estates reveals that St John’s Wood pandemonium that has hit many of the world’s prime property markets hard. House sales in the leafy prime central London market have increased by 41% in volume and 12% in value (year on year).”
properties in Mayfair and Knightsbridge and generally speaking are subject to less restrictions in regard to development activity of single dwellings – something many Belgravia residents might well envy. Houses on these larger plots are set to become increasingly prized, not necessarily as much for their development or redevelopment potential, but for the ability to secure and manage the integrity of private outside space. This will be increased further by the extremely limited opportunity for legitimate new build houses, placing an ever-increasing premium on existing stock. St John’s Wood is the only area in prime central London that offers houses with gardens, many with large gardens.
The Head of our St John’s Wood office, Rosy Khalastchy, who has lived and worked in the area for over 30 years and has always seen the appeal of area commented, “The High Street and its urban village feel appeals to a wide range of people, but recent changes in buyers’ priorities have seen unprecedented interest in the area, particularly for larger houses. Houses in the very best locations, turnkey, ready to move into can command over £45 million – pre-pandemic there was greater buyer appetite for development properties, but the challenges of undertaking work at this time coupled with people’s desire not to wait has created a demand at the very top end of the market.
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PROPERTY The market changes have also impacted the stock that is currently available: two years ago there were a number of larger houses that were experiencing difficulties finding buyers: two years on they have either been sold or secured long-term tenants. Currently there is little quality stock available. While there are no genuinely ‘new’ standalone houses coming to market, the pipeline of new developments will bring a limited number of houses and apartments to the market over the next five years or more. Planning consent has been granted for over 490 privately owned homes to be built, many
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of which are being built to a high specification and come with a range of services and private facilities – this includes projects like One St John’s Wood, St John’s Wood Square, The Landseer and a small development in the prestigious location of Hamilton Terrace, which we are working on with the developer. The advent of COVID has impacted many prime real estate markets around the world, primarily in terms of buyer priorities, none of which has resulted in the mooted mass exodus from cities, though it has reshaped demand and for some changed choice of location.
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I have experienced some clients trading Mayfair and Knightsbridge for Surrey, but many more have traded them for Regent’s Park and St John’s Wood – on a long-term basis property close to central London and protected green space is always likely to see positive capital growth and yield increases. The prime central London market has been increasing its geographical spread over recent years, creating the ultra prime sales and letting market in Regent’s Park, the subject of a 2019 report by Beauchamp Estates, moving on through to the northern reaches of St John’s Wood, to gradually connect with Hampstead.” The appeal of St John’s Wood shows no sign of diminishing, and its upward trajectory of appeal and price seems set to continue, as buyers place an ever-greater emphasis on space, green space and living local, particularly in times of restricted or curtailed freedoms, such as those brought about by Coronavirus. While house prices in St John’s Wood have increased in the last year by +12.1% to an average price per square foot of £1,604, this is still some 30% less than Mayfair or Knightsbridge, representing real value
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to potential buyers. The combined price advantage, lifestyle benefits and location of St John’s Wood all conspire to indicate that there remains substantial scope for further growth in this evergreen market for both sales and lettings. Q.
Beauchamp Estates’ St John’s Wood office is located at 80, St John’s Wood High Street, London NW8. A full copy of ‘Prime Central London Markets: St John’s Wood’ report is available to download free of charge from the Beauchamp Estates website, under Publications. For further information on Beauchamp Estates, please visit the website: www. beauchamp.com or telephone T: +44 (0)20 7722 9793.
We work collaboratively with developers and their architects at any stage of a project to guarantee optimised and low-energy compliant buildings at minimal cost. We’re with you every step of the way.
Planning approval
Avoid surprises
You’ll have a greater chance of being granted planning permission as a result of the sustainability criteria being thoroughly addressed
You’ll avoid surprises that ensure the smooth design, build and completion of low-energy commercial developments
You’ll have an increased
You’ll increase desirability for
design and knowledge of the local planning compliance framework
low energy and low running cost solutions for occupants
Visit mesh-energy.com for more information or call 01420 481573 or email info@mesh-energy.com to discuss your project
INTERIOR DESIGN
CASE STUDY: ONE BISHOPSGATE PLAZA, LONDON HOLLY GANNON Design Manager Milc Interiors www.milcstyle.co.uk
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Our brief was to create an aspirational environment for prospective purchasers and to showcase the development that considered both the interior space and the architecture of the impressive building, with its 43-storey tower clad in bronze. The aesthetic of the sky residences followed the overall ambience from the hotel; calming, textured and refined. Milc worked to create three separate schemes which related to varying aspects of the Pan Pacific brand whether it be clientele, the sites rich history and or views of the city.
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INTERIOR DESIGN
Using the Pan Pacific brand, the aim was to create high-end, welcoming spaces with a focus on layout, luxe materials and considered finishes, across entrances, bedrooms, reception and dining areas. THE CONCEPT Milc set to work developing ideas that would work for guests and residents from all over the world, settling on East-meetsWest that allowed the team to marry the Pan Pacific’s roots with the locality of the building. Playing into the ‘Proudly Singaporean in the heart of the city’ line the client had given us. The team explored the history of Pan Pacific and the South-East Asian heritage. The aesthetic was developed from the 038 – Qandor – Issue No. 18
imagery found in the researching phase and translated into three key colour palettes for sky residences. It was key to illustrate British craftsmanship throughout the design development in order to bring together the rich history and modern-day architecture. In each apartment the Milc team assessed the light, shadows and silhouettes as well as the level within the building to establish which concept idea would match the space. After considering each space and the focal aspects within them the team worked to layer luxurious materials, finishes and styling built by British artisans create an aspirational space that felt at once inviting and elevated - the perfect resting point for all residents.
THE SPACE By working with our clients to hone the brief and refine our approaches, we produced three design schemes, to demonstrate the desired layout for each apartment variation. Each scheme was carefully curated over time with different design concepts. For the first scheme, the one-bedroom sky residence we designed Aged Earth, a scheme that used the raw textures at the forefront of the design concept to reflect the breaking ground Pan Pacific’s flagship development. The layout of the space with the long corridor allowed the team to create artwork to carry through to the reception space, which features bronze, antique glass and gold. Fabrics are warm and earthy with
hints of umber and plush velvets to reflect the luxuriousness of the final design. The space is scented with warm woody diffusers to give a sense of familiarity. Bespoke cabinetry and pendant lighting create an intimate space for dining, working and relaxing. The bedroom space follows with the same colour palette, and small 3D metal sculptures designed to mimic the textures in the reception spaces giving a tactile finish to the design. The two-bedroom sky residence named Enchanting Skies was designed to bring together the depth of the London skyline as seen throughout the apartments. Mood and light tone were especially important when cultivating this design as it was essential the spaces didn’t feel too dark or light. Issue No. 18 – Qandor – 039
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The main influence within the scheme was light-play which enabled a mix of furniture and case goods to give varied silhouettes depending on the season, weather or time of day. Smoked glass and charcoal flecked wallpaper are complimented with elegant and refined accessories whilst lighter upholstery is balanced with rich textures and hues of blue. The master bedroom within the design is designed to feel like the morning with cool icy tones and elegant finishes, whilst the second bedroom juxtaposes the design and features darker velvet upholstery with rattan detailing to give a more relaxed and organic feel. The space is filled with deep scents such as amber and oud to give a sense of depth. Indeed, an evening’s entertainment
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was at the heart of this design, with lavish table settings, giving an atmospheric feel to the design. The three-bedroom sky residence Milc created was named ‘Serene Prestige’, a reference to the calmness above the city and the prestigious views. We were able to lean into the space’s South-East facing location, playing with the tones of the sunrise and sunset visible from the windows. Milc worked on a scheme that focused on elegant comfort throughout the spaces with the main objective of the design to feel luxurious, yet relaxed and useable. Fresh scents greet you as you enter with a large console area and hallway filled with artwork. Neutral upholstery complimented with fresh pinks
and warm blue colours flow effortlessly through the reception area leading to the apex view of the dining table and a backdrop of the Gherkin and Tower Bridge. Opal lighting glitters over the dining table at dusk giving an opulent feel. The bedrooms each have bespoke upholstery in contrasting designs to give a sense of personality to each room. Gold finishes gleam in the sunlight as it transitions through the spaces. The scheme allows users a moment to pause and bask in the lustrous finishes and breathtaking views, at any time of day. Q.
Milc work with clients to develop designs which exceed their expectations and deliver a seamless service. Using our designers’ array of experience and unique ideas, we are able to create engaging environments that appeal to all tastes, budgets and time restraints. If you have an upcoming project that you are seeking design advice for, please do email info@milcstyle.co.uk.
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ARCHITECTURE
5 TIPS FOR SUSTAINABLE RETROFITTING OF COMMERCIAL BUILDINGS GIOVANNI PATANIA Lead Architect & Co-Founder WindsorPatania Architects www.windsorpatania.com
Sustainability and eco-friendly are at the top of everybody’s mind right now. From media to politicians to corporates and even us, everyday citizens. A huge Climate Change conference with world leaders concluded in the UK in early November 2021, conclusions of which have kept alive the hope to keep rising temperatures at bay.Although the world is making a shift to clean energy, most of the global energy still comes from fossil fuels. While worldleaders have committed to phasing out fossil fuel subsidies, it’s clear that commitments 044 – Qandor – Issue No. 18
– however big or small – will be needed from all of us to keep our planet habitable for generations to come. As a developer or commercial building owner, one step you can take towards sustainability is improving the efficiency of your building by sustainable retrofitting. In this article, I’ll talk you through what sustainable retrofitting is, why you may want to consider doing it, benefits, any limitations, and how to go about it. I’ll also share a couple of real retrofit examples for inspiration. So stay tuned and read on.
Sustainable retrofitting is the act of taking something existing and modifying it to be more energy efficient. In the context of commercial buildings, it’s taking an existing building and repurposing it to be more efficient. You could retrofit a car, your house, factory, hotel, aeroplane or about anything to be more sustainable. In this article, we’ll talk about commercial buildings and the various ways you can go about retrofitting these.
Limitations) To put it simply, it’s primarily because you care about the environment. With the cost of sustainable technology still high, it can be hard to justify the spending and see ROI beyond marketing benefits. As an environmentally conscious developer, making a difference to the environment might be enough. And sustainable retrofitting of an existing commercial building can yield the following benefits. • Save on energy bills due to lower consumption • Marketing benefits — people like to be associated with and value sustainable brands • Meet any Corporate Social Responsibility Goals • Promote and encourage the sustainable materials supply chain • Be eligible for Government Grants • Future proof against more stringent regulations • Increased staff productivity and boost in morale • Improved thermal comfort for the people within • Possible increase in valuation
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But what about the drawbacks? Why shouldn’t you do it? Adding sustainable principles to your retrofitting operation means an increase in cost, often in the region of 2030%, depending on the design specifications. Eco-friendly materials and technologies are more costly than traditional ones because they haven’t matured or gained enough widespread use to enjoy economies of scale and reduced cost. For this reason, as a developer, you should really think about whether the value added and return of investment via the use of sustainable tech will outclass the costs. The good news is that the world is getting more sustainable and it will be only a matter of time before these costs will drop. Another challenge worth mentioning when implementing sustainable strategies, is that they often attract planning challenges. For example, if you wish to install solar panels on a listed building, the heritage department might not allow it. Familiarizing yourself with sustainable technologies is a good investment in your “Know How” which can yield a competitive Brand advantage as sustainability becomes essential and in high-demand. Passive Housing and Active Buildings A passive house as defined by Wikipedia is: “Passive house is a voluntary standard for energy efficiency in a building, which reduces the building’s ecological footprint. It results in ultra-low energy buildings that require little energy for space heating or cooling.” These houses are an example of how the above ideas can be implemented to improve energy efficiency for space heating or cooling. A passive house can be a brandnew development or refurbishment enabling a constant comfortable indoor temperature using 90% less energy than conventional means. “Active Buildings” are one such category of Passive Housing.
How Do You Convert An Existing Let’s say you’ve decided to retrofit an existing commercial building with sustainable technologies to reduce energy consumption. How to go about it? An important aspect to bear in mind for energy consumption is Thermal Insulation (or heat preservation). - Thermal Insulation Thermal Insulation is the act of reducing heat lost to the atmosphere by the building. This is important as this heat helps regulate the building’s temperature and support other energy needs. Walls, roofs, flooring and cladding can all be thermally insulated by fitting them with eco-friendly thermal insulation material (e.g. wood fibre, cellulose, wool, mineral wool, fibreglass, Expanded polystyrene (EPS), Extruded polystyrene). You can replace the windows and doors to be more airtight with improved sealing. Air transports heat so this reduces the amount of cold air that enters the building. Regular maintenance of HVAC (heating, ventilation and cooling) systems helps improve their efficiency. - Solar Energy The most common of them all, one that comes to the top of mind when talking about sustainability — Solar energy. Solar energy relies on deriving your energy needs from the sun. You can achieve this via photovoltaic cells, solar panels, or solar heaters. Deriving even a tiny % of the building’s energy needs from solar energy can compound to massive savings over time. Although solar is great, the technology to capture and store this energy is still expensive. With due time, as this hits a critical mass, the cost of solar technology and storage will come down and become mainstream. Also, how much solar energy 048 – Qandor – Issue No. 18
the building generates depends on where it’s located. In areas with lots of sunshine, surplus energy can often be produced. The use of energy-efficient LED lighting may also help cut energy bills. - Rainwater Usage Like thermal and solar, another sustainable resource is rainwater. Capturing rainwater for use is a simple yet creative solution to reducing the amount of water consumption. Rainwater can be collected and stored in tanks, filtered, and used in gardening or plumbing. Other ideas include using water from the shower or washbasin to flush toilets instead of using freshwater. - Vertical & Roof Gardens It’s no secret that plants improve the quality of air, provide more oxygen, and keep the surroundings cool. The Vertical Forest Towers (Bosco Verticale in Italian) in Milan takes this to another level. This design by Italian Architects Boeri Studio is a residential complex comprising two towers with a vertical forest of trees and bushes along the exterior of the building. They chose specific high oxygen generating plants for the project due to the urban dense location of the towers. Similarly, the presence of roof gardens can capture rainwater and maintain a cool, oxygen dense setting to help counter the heat island effect. - New Facades and Exterior Design A creative strategy to improve the sustainability of an existing commercial building is via a facade upgrade. This involves modifying the exterior sections and elevations to: • Include more plants and greenery. • Control how much sun enters the building during various times of the year.
ARCHITECTURE For example more sun during winter and less during summer. This ensures you capture and keep the most possible heat. One of the best examples implementing this practice is the transformation of an apartment block in Copenhagen, Denmark. Danish studio Tegnestuen Lokal redesigned this six-storey slab block to feature angular, plant-filled blocks on the exterior facade. This not only improves the appearance but also gives residents a relaxing outdoor space to sit, socialise and observe the streets. Updates to the exterior facade can also protect the building from winds, collect rainwater, and improve heat insulation and acoustics. Now that you have a better understanding and ideas to make a commercial building more sustainable, should you do it? This is a decision that’s based on a lot of variables. As a commercial building owner — are you looking to get a return on investment, doing it as a marketing strategy or because you think it’s the right thing to do? The answers to these are variable, personal, and influenced by your goals and ambition. The high initial upfront cost may be offset by reduced energy bills over the next 10 years. Or your building may experience a massive boost in valuation due to demand for sustainable office space. It’s all subjective and depends on your circumstances (financial, time) and goals. If marketing your building is the goal, the ROI can be measured differently from just an uplift in valuation. Whatever your strategy, having the right building team and suppliers in place who understand local regulations will be key.
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Conclusion There you have it. Some interesting ideas and tips on how to sustainably retrofit an existing commercial building. We covered the pros and cons of sustainable retrofitting of commercial buildings, tips and strategies on how to go about doing it. You also saw a couple of real examples of facade upgrades and vertical gardens from 2 interesting projects. Lastly, we examined the verdict of whether you should invest the money in a sustainable retrofit of a commercial building (or not). The answer is personal and depends on your goal. Q.
I hope this article gave you valuable insight into exploring a potential retrofit to help decide if it’s the right action for you. If you liked this article and want to learn more about me or my company WindsorPatania Architects please get in touch via our website www.windsorpatania.com.
COVER STORY: ENERGY
ON THE MOVE: A PIONEERING JERSEY HOTEL DEVELOPMENT WITH ULTRA-LOW ENERGY AMBITIONS DOUG JOHNSON Founder & Director Mesh Energy www.mesh-energy.com
The past year has seen the construction industry navigate another year of ups and downs, and once again, sustainability and decarbonisation have been at the top of the agenda. The bombardment of media attention 052 – Qandor – Issue No. 18
and government announcements have peaked this month with COP26, where mounting pressure has been placed on the need to restrict global warming levels to +1.5ºC above pre-industrial levels.
Images Courtesy of Tim Skudder Architects
A whole raft of new and foreign terms like ‘Net Zero’, ‘Carbon Neutrality’, Embodied Carbon’, ‘Carbon Offsetting’, have become everyday soundbites. Whilst it is tempting to either bury your head and hope it will go away or become cynical as to the severity of the issue, some facts are undeniable. Like the fact that the built environment contributes around 40% of the UK’s carbon footprint. Or that global temperatures have already raised by 0.8ºC since 1990. Of course, we must remain optimistic, and by focusing on our own projects it is easier to see the impact we can make. By
better understanding the effect you can have on your carbon output, you may be surprised by the rapid progress that can be made to decarbonise your developments, increase stakeholder engagement, and find financial success on many levels. This month, I thought I would share one of Mesh’s recent case studies, which highlights the power of putting together the right team at the right stage of a site’s conceptual development. And how you can use teamwork, collaboration and data analysis to supercharge a proposal’s chances of success.
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COVER STORY: ENERGY
With miles of beautiful beaches, stunning coastline and fantastic heritage, the Channel Island of Jersey has always been a popular destination. It’s set to become even more attractive, as tourists from the UK and the continent look for safe places to holiday that are still close to home. 054 – Qandor – Issue No. 18
It’s the perfect time, then, to invest in a sympathetic hotel development, transforming a listed hotel into a five-star destination accommodation – and all with sustainability and community at its heart. That was the ambition of Lance Trevellyan at CCA Galleries International,
Images Courtesy of Tim Skudder Architects
a Jersey -based business that bought the Millbrook House Hotel in St. Helier and was planning to invest £18m in this pioneering new build and listed building refurbishment project. “There is a lack of dedicated ecoaccommodation on the island, and the
hotel will support consumer demand for sustainable visitor experiences. We expect Jersey to become a very popular destination on the post-pandemic tourism map, and travellers are becoming more determined to make sustainable travel choices.”
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“The goal was to provide much-needed tourist accommodation on the island, and to do it with sustainable building practices that are in line with the island’s commitment to being carbon neutral by 2030.”
The goal was to provide much-needed tourist accommodation on the island, and to do it with sustainable building practices that are in line with the island’s commitment to being carbon neutral by 2030. Architects’ plans are for 39 bedrooms, seven self-catering units and six eco-pods. The hotel will also have a spa and wellness centre, a hothouse cookery school and restaurant, and good quality staff accommodation – the hotel should create at least 40 new jobs. In addition, the team would completely restore the heritage gardens. To support these ambitions and give the proposal the greatest chance of success at the Design Review Panel, the sustainability credentials and holistic energy strategy had to be well understood and proven, alongside key heritage, ecology, landscape, and traffic planning proposals.
Images Courtesy of Tim Skudder Architects
CCA Galleries International and Tim Skudder Architects needed another team member to help guide them in building sustainable energy practices into the design and refurbishment of the site. Having approached Mesh about the opportunity, early team building points were scored by the transparent approach of the client and architect who already had been commended for innovative sustainable design on Jersey in 2017 and needed further assistance in this area. Mesh investigated various approaches to unify and assess the different building typologies, without overly burdening the projects with red tape and unnecessary costs. The RIBA 2030 Climate Challenge performance targets for operational energy use, water use and embodied carbon quickly
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COVER STORY: ENERGY
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Images Courtesy of Tim Skudder Architects
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COVER STORY: ENERGY became one of the most obvious choices. The RIBA 2030 climate challenge reduces energy usage and carbon levels to around 75% lower than today’s building standards and improves year-round thermal comfort too. CCA Galleries International was keen to use the RIBA 2030 targets as a basis for moving forward and invested time and money to design a scheme that used these targets as committed sustainability goals for the development. To model energy usage, embodied carbon and thermal comfort, Mesh’s design team embraced centralised building physics modelling, which gave an invaluable foundation to the conceptual and developed
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design phases. This was supplemented by RICS cost modelling data to accurately finetune the balance between energy savings, capital cost and building typology choices. This was the first time these tools had been used, giving us a new understanding of the power of 21st Century building design, cost and risk management. Unbeknownst to the design team, the Jersey Design Review Panel included a member of the team that had created the RIBA 2030 Climate Challenge. As a result, the panel had increased confidence in the project and an appreciation for the evident sustainable forethought and commitment.
Images Courtesy of Tim Skudder Architects
Mesh continued to work closely with the developers and architects, to iteratively review and refine the scheme with input into the site-wide energy strategy. In September 2021 the scheme was unanimously granted consent by the Jersey Planning Committee. Shortly after the announcement Lance Trevellyan commented, “Mesh were instrumental in helping the design team and ourselves to determine the right low energy and holistic building design framework for us to best achieve our low carbon goals on the hotel site. Embodied carbon and cost modelling helped us to determine the most sustainable and economical way forward, and the holistic energy analysis undoubtedly helped the final planning permission to be granted.”
Projects of this nature are founded on getting the right design team together and respecting each other’s areas of expertise. Those projects that aren’t just focused on bare bones cost and embrace new ways of working are always a delight to work on, and as this case study shows, they often end in a strongly supported scheme which will be a low energy tourist hub to be proud of well into the future. We look forward to seeing how the project develops as it starts construction in Summer 2022. Q. !"#"$% &&&'()#*+),)-./'01(% 21-% (1-)% ",21-(3$"1,%3,4%$1%#$3-$%3%4"#05##"1,%3615$% /15-%,)7$%8-19)0$'
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FINANCE
CASH IS KING – THAT’S WHY WE HAVE UPPED OUR GEARING Blend Network
Property developers know well that cash is king and that being able to get higher gearing from a lender can make or break a property deal. Roxana Mohammadian-Molina, 062 – Qandor – Issue No. 18
lender Blend Network, argues that as the pandemic ebbs, we need to get lending going again and explains why Blend Network has decided to up its gearing game.
At the height of the pandemic last year, development finance debt seemed to have suddenly dried upi. By March, we noted a marked reduction in appetite for lending within our market but assumed that this would be relaxed over time. Borrowers who wanted to proceed with their schemes had to pay higher interest rates and seemed willing to do so. In many respects, it felt like a ‘déjà vu’ because this was a trend we had seen in the aftermath of the Global Financial Crisis (GFC) where pricing of debt seemed a lesser issue compared to its availabilityii. But fast-forward 18 months, liquidity has not returned to the development finance market to the extent that we had expected it to. By now, with life returning to some kind of normality, we would have expected lenders to begin to adopt a less cautious approach but that doesn’t seem to be the case and indeed, there are some signs of a further tightening up on the way.
This change in lenders’ attitude is not surprising within the context of longerterm trends witnessed in development finance and the way the market has evolved in recent years. According to the 2019 Cass Real Estate Lending Reportiii, debt funds and other new lending entrants have provided significant capital over the past decade, though not enough to offset the reduction in debt provided by banks and traditional lenders, which has ensured that finance has remained at a new lower normiv. According to CBRE, the pandemic may not only crystallize this new lower level but could also see it reduce further, at least in the shorter termv. Yet I strongly believe that now, more than ever before, it is high time to go back to pre-COVID levels of lending and gearing so that together we can get Britain moving again. Specialist lenders, nimbler and more agile lenders compared to larger traditional lenders and banks, can and must play a key role in deploying Issue No. 18 – Qandor – 063
FINANCE more funding into the housing market. These specialist non-bank lenders who, despite being regulated, are bound by less strict credit criteria and parameters than banks, have a key role to play in allowing SME property developers and small construction companies unlock the funding they need to build the homes the UK needs. At Blend Network this is the direction we have decided to go to ensure we are able to support a growing number of property developers looking to fund their projects. For example, we recently announced the launch of a new highgearing product that offers experienced property developers pre-COVID levels of gearing with up to 75% Loan-To-GDV (LTGDV) and up to 90% Loan-To-Cost (LTC). With this new product, we are effectively sending a strong signal to the market saying that we are open and ready to back experienced property developers. In summary, I strongly believe that as part of the real estate development finance market moving further towards specialization and professionalism, we will see a growing decoupling between traditional banking lenders and specialist non-bank lenders, with the latter being able to better recognize customer needs and offer higher-gearing, more tailored lending solutions. Let’s get Britain moving, let’s get lending going, let’s build back better together. .Q.
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Source: https://bit.ly/3EZ0AH3 Source: https://bit.ly/3EZ0AH3 iii Source: https://bit.ly/2XOWZdv iv Source: https://bit.ly/3EZ0AH3 v Source: https://bit.ly/3EZ0AH3 i
ii
Blend Network is a specialist real estate development finance lender. More information can be found at www. blendnetwork.com. Your capital is at risk if you lend to businesses. P2P lending is not covered by the Financial Services Compensation Scheme. Investments are illiquid (the inability to sell assets quickly or without substantial loss in value). Past performance is not a reliable indicator of future results. Blend Loan Network Limited is authorised and regulated by the Financial Conduct Authority (Reg No: 913456)
FINANCE
KEY HIGHLIGHTS FROM THE “BUILD BACK BETTER” BUDGET BREAKDOWN JAKE PEARLMAN Director Haysmacintyre www.haysmacintyre.com
On 27 October the Chancellor, Rishi Sunak, presented his “Build Back Better” budget with ambitions to level up and reduce regional inequality. Compared to previous budgets, where the property sector suffered both new and increase taxes, this time the sector, other than the large
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residential property developers, escaped relatively lightly. That being said, the industry has plenty to consider with the previously announced increase in corporation tax to 25% from 2023 and national insurance and dividend increases of 1.25% from April 2022.
Key highlights for the property sector: Residential property developer tax From 1 April 2022, a new tax will be applied on company profits derived from UK residential property development. The tax will be charged at 4% on profits exceeding £25m. For companies that are part of a group, the £25m allowance will be allocated by the group between its companies. Where property business covers a number of activities, it will be necessary to identify the profits arising from the residential property development. The Government has pitched this at large corporate residential property developers. However, the £25m allowance excludes any relief for finance costs or losses from other activities, which will increase the number of companies subject to this tax. It has been confirmed that investment properties built to rent will not be within the scope of this new tax. There are also exclusions for developments by charities and their subsidiaries and some communal dwellings such as care homes and student accommodation. Business rates reform The Government announced at Budget 2020 that it would conduct a fundamental review of the business rates system in England. The Government’s objectives for the review were reducing the overall burden on business, improving the current business rates system and allowing the consideration of more fundamental changes in the long term. The Government published its Final Report on 27 October 2021, which included some of the commitments below: - Supporting local high streets as they
adapt and recover from the pandemic by introducing a new temporary business rates relief in England for eligible retail, hospitality and leisure property for 2022/23. Over 90% of retail, hospitality and leisure businesses will receive at least 50% off their business rates bills in 2022/23. - Cutting the burden of business rates for all businesses by freezing the multiplier for 2022 to 2023. - Introducing a new relief to support investment in property improvements, enabling occupying businesses to invest in expanding their properties and making them work better for customers and employees. - Introducing new measures to support green investment and the decarbonisation of non-domestic buildings. - Making the system fairer by moving to three yearly revaluations from 2023. Extension of time to pay Capital Gains Tax (CGT) No changes to the current rates of CGT were announced, but changes have been made to the timing of filing of CGT returns. UK residents who dispose of UK residential property are sometimes required to deliver a CGT return to HMRC and make a payment on account of CGT within 30 days of completion of the property disposal. Broadly, this only applies where the property disposal gives rise to a CGT liability and as such usually excludes the disposal of a property to which private residence relief applies. Non-UK residents are subject to similar deadlines in respect of the disposal of all types of UK land and property. In both cases, for disposals that complete on or after 27 October 2021, the reporting and payment deadline is doubled
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to 60 days following the completion of the disposal. From the same date, changes will clarify that for UK residents disposing of a mixed-use property, only the portion of the gain that is the residential property gain is required to be reported and paid. £1m annual investment allowance extension until 31 March 2023 Most corporate and unincorporated businesses were able to utilise a £200,000 annual investment allowance (AIA) to claim 100% tax relief on their qualifying expenditure on plant and machinery. The allowance was temporarily increased to £1 million for expenditure incurred on or after 1 January 2019 and was due to revert back to £200,000 from 1 January 2022 but will now be retained until 31 March 2023. This aligns with the end of the super deduction announced in the March 2021 Budget. Annual Tax on Enveloped Dwellings (ATED) The ATED charges automatically increase each year in line with inflation. The ATED annual charges will rise by 3.1% from 1 April 2022 in line with the September 2021 Consumer Price Index. However, with the next fixed revaluation date to determine the appropriate ATED band also being 1 April 2022, the increased charge could be accompanied with an increase in the relevant ATED band. REITs The Government reiterated the first phase of, mostly technical, REIT changes announced earlier in the year due to be introduced from April 2022. In summary, the changes include: - Removing the requirement for REIT shares to be admitted on a recognised stock 068 – Qandor – Issue No. 18
exchange where institutional investors hold at least 70% of the ordinary share capital in the REIT. - Amending the definition of an overseas equivalent of a UK REIT so that the overseas entity itself, rather than the overseas regime to which it is subject, needs to meet the equivalence test. - Amending the rules requiring that at least 75% of an REIT’s profits and assets relate to property rental business to disregard non-rental profits arising, because an REIT has to comply with certain planning obligations, and to ensure the items currently specified as excluded from the profits part of the test are disregarded in all parts of the test. - Introducing a new simplified balance of business test so that, if group accounts for a period show that property rental business profits and assets comprise at least 80% of group totals, an REIT will not have to prepare the additional statements that would be required to meet the full test. The Government is considering a further set of REIT changes as they undergo a review of the REIT regime. What does this mean? The majority of those involved in the real estate sector are unlikely to suffer significant change because of this budget, with tax hikes being focussed on large residential developers. However, whilst there remains uncertainty in areas, such as what rates reform will actually look like, the highest Government spending in real terms since the 1970s should provide plenty of opportunities for the sector in the year ahead. Q.
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CEO & Co-Founder CrowdProperty www.crowdproperty.com
There will be many of us who have become familiar with the acronym ESG in recent times, particularly given its rise to prominence within investment circles. Encompassing environmental, social and governance issues, the pre-ESG generation will better recognise these terms as socially responsible investing or possibly
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sustainable investing. Whilst arguably a new exercise in branding, the importance and escalation of our awareness of ESG cannot be downplayed. The continuing popularity of ESG as a concept marks an upward trend in the significance we as individuals place in particular on organisations and the impact of their behaviours. The adoption and reverence given to ESG mark a defined cultural shift in how society is prioritising these key factors, for example from where we buy our food to where to invest our money. Correspondingly, organisations have started to broaden the provision of products or services they can offer to align with those needs, from electricity providers supplying 100% renewable energy to socially aware investment funds that avoid exposure to alcohol, gambling or tobacco products, for example. For some, the environment will be a well understood principle – considering a range of issues from climate change to energy efficiency. From a social perspective, many will value the importance a company places on its relationship with its local environment to treatment of its staff. Similarly, others will consider an entity’s approach to bribery and corruption, a key consideration in respect of corporate governance. Of course, the concept of ESG is much more broad-ranging than these examples, but this illustrates the multiple ways in which ESG fundamentals can be adopted. With the prominence of COP26 very much at the forefront of our minds, it seems time-
appropriate to consider the environmental limb of ESG first. This year’s UN Climate Change Conference, based in Glasgow, looks to complete and implement The Paris Agreement – arguably the most significant world-focussed approach to targeting climate change we have seen to date. Events such as COP26 will start to highlight to a broader audience the impacts of climate change and draw attention to the main contributors to emissions. Indeed, according to a Savills report, the built environment is one of the world’s worst and biggest contributors to climate change, being responsible for almost 40% of the world’s energy and related emissions. Clearly the task ahead is not easy; nonetheless this limb is of critical importance for the planet and, by implication, to us. We will look at some key aspects. Despite a growing awareness of the impact real estate has, there is still a general lack of understanding as to the true impact of real estate on the environment and the real carbon footprint, for example, behind products used and techniques employed. Many will also note how the construction industry historically has typically been slow to respond to change; coupled with labour shortages, in particular those of a skilled nature, this has only exacerbated matters. It is worth noting that the industry is still in the early stages of how to effectively reduce its impact, and so sustainable methods in particular continue to be predominantly more expensive than, say, traditional methods. Understandably, cost remains an important factor in construction decision making, slowing the uptake of these methods.
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Nonetheless, we are starting to see environmental factors filtering through, such as increased insistence from planning departments stipulating planning conditions that incorporate sustainable products and technologies on development projects – including relevant accreditation (e.g. BREEAM) through to developers adopting modern methods of construction into their projects. Certainly from a development perspective, planning can be an effective driver of environmental change. Many will be familiar with recent government policies aimed at delivering environmental solutions through retrospective works, from grants towards insulating houses to the recent push for take-up of air and ground source heat pumps. Until sustainable and environmentally friendly materials and processes become cost-effective, however, the government will need to drive uptake in the first instance.
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At CrowdProperty, we recognise that there is so much we can do and we will need to continue to adapt to lower our impact on the environment. Day to day, we have started to adopt flexible working to help drive down the number of journeys made to the office in addition to making an electric vehicle scheme available to all staff. Meeting face to face with our developers is a key part of how we like to do business; nonetheless we have started to be more efficient in how these are undertaken, in particular incorporating multiple site visits in one trip. Similarly, we do not prescribe the number of visits instructed third parties are to make to site either, which also helps reduce our total related carbon footprint. Even placing recycling stores in the office provides a simple but effective way to combat climate change.
Our Lower Marsh, London project is just one example of CrowdProperty backing more sustainable house building – this penthouse apartment was constructed using a modular system. Whilst we are currently looking at how we can revise our lending facilities to reward developers who adopt sustainable measures, more broadly, we continue to actively encourage and invite proposals for projects that incorporate sustainable techniques. Indeed, we do recognise that some sustainable practices and modern methods of construction, particularly modular builds, can present issues around how finance can be structured, but we are
happy to engage with and assist developers where we can. CrowdProperty has funded over £350,000,000 of property projects by SME property professionals, funding the development of more than 1,750 homes. This is still just the start of our mission to transform property finance to build more homes, increase spend in the UK economy, and ever more efficiently and effectively match the supply and demand of capital for the benefit of all. Together we build a better future.
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FINANCE
WHY WAS THE TRIPLE LOCK SUSPENDED & DOES THIS AFFECT MY SELF-INVESTED PENSION? GEORGE TTOULI APFS Chartered Financial Planner Burlington Wealth Management Ltd www.sjpp.co.uk/burlington
Firstly let me explain what the triple lock was. Some readers will know this was the system used by the government to determine the annual increase of the state pension. 074 – Qandor – Issue No. 18
It was announced in early September by Therese Coffey, the Work and Pensions Secretary, that the triple lock is to be suspended for 2022/2023. Instead it will be replaced by what has been termed the double lock.
There is therefore no connection between the triple lock and a self-invested scheme such as a SIPP or a SSAS. Most of our clients who are motivated property investors understand the benefits of holding property in a self-invested scheme. The amount of jargon in pensions is unbelievable and I have joked previously that pensions have their own language. It’s therefore no surprise I was recently asked by a SIPP investor to explain the effect of the triple lock. Apart from SIPP and SSAS, in all types of money purchase pensions – whether they are private plans or group plans started by an employer – the ultimate benefit is determined by the success of the investment strategy. The term money purchase refers to how much income can be purchased by the money in the pot. In the current climate of flexible drawdown pensions, the majority would simply invest carefully (sometimes continue holding commercial property that pays a decent rental yield) to generate income to draw from the pension. The triple lock therefore is totally irrelevant to them. The triple lock meant the government would increase the state pension each year in line with whichever of the following three indicators is the highest: inflation measured by the consumer price index (CPI), the average level of wage increases, or simply by 2.5%. The new double lock has removed the average level of wage increases and for the moment going forward, state pension will only rise by the higher of CPI or 2.5%.
This is interesting because during the global pandemic and due to implications of the furlough scheme, a large number of people have been returning to full pay. As a result the average rise in earnings is estimated at 8% for the year ending July 2021. Under the rules of the triple lock, this would have meant that every person receiving a state pension would have had to have it increased by 8%. That’s a difficult situation for the government especially as it is trying to curb spending after the cost of the pandemic. So the result of this announcement is yes, state pensions will increase but not by 8% across the board.Q. If anybody has questions about their state pension or any type of pension, please feel free to contact me.
George Ttouli is a qualified financial adviser at Burlington Wealth Management and is available to discuss any financial matter. If you wish to arrange a private consultation, please call the office on (020) 8882 6688 or send an email to george@ burlington.uk.net.
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FINANCE
LENDERS’ PERSPECTIVE:
HMOS VS MULTI-UNIT FREEHOLD BLOCKS VS SHORT-TERM LETS VS ASSISTED LIVING LEE LANGLEY Principal OnPoint Mortgages www.onpointmortgages.com
At OnPoint Mortgages we have always worked with investors attracted by the yields in many houses in multiple occupation (HMO).
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An HMO is classified as a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities like the bathroom and kitchen. Landlords can often achieve upwards of 8 to 10% compared to a UK average of around 5%
for single tenant properties. Due to separate tenancy agreements, voids are spread and affect only a proportion of income, reducing the risk of payment shortfalls. Mortgage options for HMOs are plentiful in the specialist market, with lending options available for smaller and larger HMOs, experienced and inexperienced landlords, as well as student or working tenants. Lenders such as Kent Reliance can even go up to 80% LTV. As with any investment there are always things that you should carefully consider. Managing an HMO can be more challenging than a single let property; there are increased running costs, and new licensing schemes can be introduced by local authorities. The pandemic has also seen added complications for some landlords in certain locations. Being Sussex-based, we have seen this particularly
around the Gatwick area with clients reporting an increase in rental voids within their HMOs. This has led to a number looking at new investment opportunities. Like HMOs, funding for multi-unit freehold blocks (MUFB) are well served by the specialist mortgage market with products again up to 80% LTV. First-time landlords are typically restricted to purchasing smaller properties containing 10 apartments while experienced customers can access lending for much larger blocks. An MUFB is defined as multiple, separate, independent residential units held under a single title. Due to the separate tenancy agreements, voids are again spread across each flat. In addition, it is easier to carry out refurbishment works on one of the units without disturbing the other tenants. Issue No. 18 – Qandor – 079
FINANCE
“One of the biggest increases in enquiries over the last few months has been from landlords looking to let their property to an assisted living service provider” You have the flexibility of creating separate leases on each apartment and selling them individually or keeping them all under one freehold. If under one freehold, providers can also consider a block containing smallersized flats or studios. Short-term lets were generally difficult to fund, especially if you were purchasing within a limited company or if it was in an area without a demand from holiday makers. With the increase in staycations, funders have become more comfortable with this proposition and options are expanding. This is the case even for those properties that only have a demand from contractors, business travellers, city visitors or emergency accommodation. Maximum LTV is 75% and lenders include Foundation Home Loans, The Mortgage Lender and West One. West One are even able to consider MUFB short-term lets. Holiday lets are still subject to full mortgage interest relief, and the returns can be impressive. If the property is a leasehold, you must ensure that it does not prohibit subletting and be aware that regulation may come into place around serviced accommodation. Shortterm lets need to be managed as a business 080 – Qandor – Issue No. 18
due to the quick changeover in tenants, and the cleaning of the properties between stays is essential. One of the biggest increases in enquiries over the last few months has been from landlords looking to let their property to an assisted living service provider. This is usually based on a 3- to 5-year full repairing lease; rent is higher than that on the open market, with no voids. Many of these charities cry out for good quality accommodation but it has been extremely difficult to find suitable lending. This is because lenders have concerns around ‘reputational risk’ in the event they must repossess a property containing vulnerable tenants. Thankfully lenders are slowly becoming available with West One and Together offering a product in the right circumstances. The demand is there; we wait to see if funders adopt policy and provide a solution. We will be keeping an eye out for criteria changes in the coming months across all four strategies, and I would be keen to hear feedback from those engaged in them.Q.
Your home may be repossessed if you do not keep up repayments on your mortgage. Some forms of buy-to-let mortgages and some forms of commercial lending are not regulated by the Financial Conduct Authority. Lee Langley is the Principal Mortgage and Protection Adviser at OnPoint Mortgages. OnPoint Mortgages, a trading style of L&D Mortgages Limited, is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: 25 Homefield Road, Bushey, Hertfordshire, WD23 3AP. Registered in England & Wales under 10500099.
MEMBER PROFILE
RICKY McLARNON
When did you join Qandor? I saw Qandor promoted in Property Investor News / Property Week / Estates Gazette when the club was launched in November 2017. I flew to London to meet Matt soon after to see if it would be worth my while joining the London-based club given I am based in Belfast. I signed up soon after that and haven’t looked back. How did you end up working in property? I graduated with a degree in Finance in June 2007 and started a master’s in property in September 2007. Northern Rock went bust during my first week of class which signalled the start of the credit crunch and the collapse of the property market. Graduating in late 2008 with two (then redundant) degrees and no prospect of getting a proper adult job, I borrowed some money and bought a repossessed house at auction and flipped it soon after on the open market. I continued doing this until the collapse in house prices started levelling off. When mortgages became more readily available, it was harder to buy auction properties at good value, so I moved into development and started with a oneoff house. The sites we developed increased in size to small housing developments and then to a 30-unit apartment block. Brookland Property are opportunity-led developers and investors and have developed/invested in multiple different sectors – residential, social housing, shopping centres, car parks – and are currently appraising opportunities in hospitality and serviced accommodation.
What is the best thing about working in property? To me, working in property is fundamentally a social career (I don’t just mean the great corporate events and nights out, although they are definitely a bonus). Yes there are lots of long and boring hours spent alone in front of spreadsheets and property websites, but ultimately for us to do any business at all, we are heavily reliant on a large network of property professionals (agents, banks, investors, design team, etc). We can’t do anything on our own so it is critical to invest time in new and existing relationships. What are you working on currently? Brookland Property recently acquired a vacant shopping centre in my hometown of Bangor in Northern Ireland. The shopping centre has 150,000+ sq ft of vacant space and an adjoining 430-space multistorey car park in the heart of the town centre on a prime pitch that links Main Street and High Street. Bangor, like most town centres, has been decimated by the development of out-of-town retail and then furthermore by online retail. This shopping centre gives us the opportunity to reimagine what town centre space should now be used for and to help reinvigorate my hometown. What is your ideal project? An off-market site with planning permission that I can secure with no money down while exchanging contracts for a pre-let within the due diligence period that allows a lender to forward fund it at 100% loan to cost. If anyone has these types of deals lying around, I’m all ears. Issue No. 18 – Qandor – 083
What are the biggest obstacles facing developers at the moment? The majority of the current problems that developers face have to do with construction – whether it be the increasing cost of materials, increased lag time from ordering materials to delivery, availability of materials, suppliers cutting credit facilities or loss of construction workers because of Brexit and COVID. In terms of future obstacles, I would have concerns about the housing market in general. Nationwide Building Society recently announced that the average price of a UK home is now at its highest ever level, above £250k for the first time ever. I’m no economist but… when a property market achieves a new record high during a global pandemic when the economy was completely shut down and people were getting paid by the government to stay at home, after the government racked up a humongous amount of debt while simultaneously burning all its bridges with its biggest and closest trading market and has an economy that relies heavily on foreign national workers who fled back to their homeland and now cannot return (even if they wanted to) because of new visa rules… it does make me raise an eyebrow that another housing market crash might not be too far around the corner. I would be happy to be proved wrong on this.
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Who would be your ideal guest speaker at a Qandor event? Matthew Syed, Clive Woodward or Dave Brailsford. Not for anything property-specific but to learn more about mindsets, alternative thinking and achieving goals. How does being a member of Qandor add value to your business? Qandor has been the biggest contributing factor to the growth of Brookland Property since 2018, so much so that I continue to make the monthly return trip from Belfast to London to attend the Developers Forum almost four years after joining. Qandor isn’t the typical speed-dating-type networking event where you meet 30 different people in 30 minutes and leave with a load of meaningless business cards; it is a verified network of property professionals that take time to share knowledge and support without the expectation of anything in return. The more time and effort you invest in Qandor, the better the relationships you build.
FESTIVE SPIRIT IN THE SKY (GARDEN)
Qandor Christmas Drinks, 1st December 2021, Sky Garden Qandor members kicked off the festive season in style with drinks, canapes, fantastic company and incredible views
Qandor.