Hodgson Elkington LLP Lincolnshire Construction Network

About Hodgson Elkington LLP Founded in 1990 Specialises in Property Management, Commercial Agency and Professional Services Staff of over 50 includes 10 Chartered Surveyors and 3 Graduate Surveyors. All have specialist knowledge in the following disciplines.

Property Management Property & Land Sales Valuations Development Consultancy Rent Reviews & Lease Renewals Landlord & Tenant Property Investment Acquisitions & Disposals Dilapidations Property Marketing Residential Service Charge Management

Dan Race Partner Commercial Agency Department 20 years experience Sales and Letting across all property sectors Development advice Meet the Team Sam Elkington Senior Partner Over 35 years experience Specialised in Property Management Expert advice on Property Development and Investment Founding Partner Tim Shaw Partner Commercial Property Management 15 years experience Pro-active Property Management Dilapidations and Party Wall

Meet the Team Arthur Hartshorne Associate 30 years experience Commercial Asset Valuation Work Marie Gutteridge Associate Partner 18 years experience Specialist Rent Review and Lease Renewal Property Management Jeremy Hoare Associate 25 years experience Development and Agency Surveyor Identification of Development Opportunities and solutions for National Clients

Meet the Team Tim Murgatroyd Consultant Surveyor 30 years experience Property Management Professional Work Hayley Playle Senior Surveyor 8 years experience Commercial Property Management Matthew Johnson Senior Surveyor 7 years experience Commercial Property Agency Lewis Cove Senior Surveyor 5 years experience Commercial Property Agency

Where Do We Work Lincolnshire East Midlands Property Management Instructions throughout the UK

Dan Race MRICS Partner Hodgson Elkington LLP Lincoln Commercial Property Market Update Looking at activity and values in the market as Lincoln climbs out of recession

INTRODUCTION 1.Coming soon - New commercial developments in the pipeline 2.The market sectors :Retail Office Industrial 3.Hints and Tips:Managing vacant rates Are you under-insured ?

New commercial developments in the pipeline Fit4Less, Nettleham Road – 7,000 sq ft gym – completion August 2014

New commercial developments in the pipeline Sadler Road, Lincoln – 6,000 sq ft new build – completion Spring 2015

New commercial developments in the pipeline Teal Park - 26,700 sq ft development, units from 2,600 sq ft. First unit pre-let.

New commercial developments in the pipeline Saxilby Enterprise Park – Eight units to be completed in 2014

The Market Sectors – Retail City centre continues to perform well Strong demand for District Centres Trade counter operators starting to return

The Market Sectors – Offices Still significant oversupply New build not generally viable Rents and prices for better properties stabilising A good time to rent or buy

The Market Sectors – Industrial Significant new build in the pipeline Increasing rents and prices Driven by lack of supply Rents moving from £ £5.50 psf

Hints and Tips - Managing Vacant Rates Initial free period – 3 or 6 months Then full rates payable Occupy for 6 weeks – ‘beneficial occupation’ Claim a further free period And repeat …

Hints and Tips - Are you Under-Insured ? Rising construction costs – time to review your cover ? Include demolition and professional fees. Averaging of claims. Can you recover VAT – are you 20% under insured ?

For further details of the Commercial Agency services provided by Hodgson Elkington, please contact: Dan Race Tel:

Landlords Take Note Commercial Rent Arrears Recovery (CRAR)

From the 6 th April 2014, the Common Law Remedy of Distress, whereby a commercial Landlord could enter a tenant’s premises, and seize and sell the tenant’s assets to recover rent arrears has been replaced by a new statutory process, Commercial Rent Arrears Recovery (CRAR).

Step 1: Written Warning Notice Enforcement Agents must provide 7 days’ notice of an intended action. The notice should include: Specified details of the debt The date the notice was issued Contact details of the Enforcement Agent Methods of payment

Step 2: Taking Control of Goods The Enforcement Agent can attend at the demise premises on any day of the week between 6am and 9pm, provided the tenant has been given 7 days advance notice. The new Act replaces Walking Possession with a Controlled Goods Agreement. A Controlled Goods Agreement will state that the Enforcement Agent is in control of the goods and they cannot be disposed of by the tenant without authority from the agent.

Step 3: Re-Entry after a Controlled Goods Agreement In order to re-enter the premises, an Enforcement Agent must give 2 clear days’ notice of re-entry. Re-entry must occur between 6am and 9pm, unless the business operates outside of these hours.

Step 4: Sale of Goods There is now a statutory requirement to obtain a Valuation before selling goods. This must be given by an independent and qualified Valuer. The notice of sale must be within 12 months of taking control of the goods and there should be a minimum notice period of 7 days for the sale to be valid.

Step 4: Sale of Goods - Continued The notice of sale must contain: Details of the proposed sale The Enforcement Agents details All relevant reference numbers The amount outstanding at the date of the notice A date and time by which the outstanding sum must be paid to prevent the goods being sold.

Step 4: Sale of Goods - Continued Aside from the basic steps above, there are a number of other important changes which commercial Landlords should be aware of. The CRAR procedure can only be used to collect pure rent. The procedure cannot be used to collect service charge or insurance rent. With regard the premises, the property, or any part of it must not be a dwelling and must be solely used for commercial purposes.

Step 4: Sale of Goods - Continued For the CRAR procedure to be used a Lease must be in place. This is defined as a tenancy law including a Tenancy at Will. The tenancy must also be evidenced in writing. The process of CRAR cannot be used when a tenant has a Licence Agreement.

These are important procedures which a Landlord must get right in order to secure the outstanding rent. Failure to do so, will mean the Landlord is in breach of the procedure and the ability to recover outstanding rent, will be prejudiced.

For further details of the Commercial Management and Commercial Agency services provided by Hodgson Elkington, please contact: Tim ShawDan Race Tel: Tel: