21 January 2011 by

Glass half empty?

What is the current liability to pay Business Rates on empty commercial property? This is a significant cost consideration to both landlords, who may be considering forfeiting a defaulting tenant’s lease, and tenants who are in financial difficulty.

The Empty Property Rate (‘EPR’) is payable in respect of empty property by the person entitled to possession of the property unless it is otherwise exempt. A person entitled to possession of a property is not only a tenant in occupation but can also be a tenant who has vacated a property and who has been unable to assign or surrender their lease.

All empty commercial property is exempt from EPR for three months and empty Industrial and Warehouse property, provided it has no retail element, is exempt for six months. It is important to note that this exemption relates to the property and not to the occupier. It is, therefore, possible that a previous occupier has absorbed part or all of this exemption prior to the current occupier acquiring an interest in the property.

There are a number of other exemptions, not all of which are referred to below, including property whose owner is prohibited by law from occupying it or allowing it to be occupied, property which is the subject of a building preservation notice and property where the rateable value is less than £2,800 (this figure has been increased to £18,000 for the rate year 2010/11 but will revert to £2,800 on 1st April 2011.)

There are, however, also a number of measures that can be adopted to minimise business rates liability on empty property including, for example, short lets for periods in excess of six weeks.

If you would like to discuss these measures or the Empty Property Rate, please call us on 0207 288 4700 or email us at info@boltburdon.co.uk

21 December 2010 by

Stating the obvious ………….

Which head of a renowned commercial agency office recently stated that “ Nobody in the retail trade is in doubt that a shop in the wrong location.

4 January 2011 by Sonal Ghelani

Property Prices

The latest house price index from Nationwide Building Society has revealed a 0.4% rise for the month of December compared with November, which means that house prices are now just 0.4% higher than this time last year.

Signup To Our Weekly e-News

"*" indicates required fields

We’ll never share your details with any third party in line with our privacy policy.