AUC - Grazing Licence

AUC instructed to agree a new grazing licence - yes the rurality of the AUC instruction continues at a pace!

The Licence is a one year rolling licence for a farmer to let his livestock on to...graze.
Pretty straigt forward Licence with a few conditions such as the obligation on the Grazier to make sure fences, hedges and gates are in good order and to be repaired as necessary.

AUC - Instruction to negotiate lease renewal for industrial unit

AUC instructed by Kent based client to negotiate lease for industrial unit – lease contracted inside 1954 Act. Negotiations are progressing for a 5 year lease TBA outside 1954 Act provision, mutually exercisable break after year 3 and 33% uplift on current passing rent.

AUC - Concludes sale of Agricultrual Land

AUC’s negotiated sale of 10.87 acres (in Kent) of agricultural land has completed with both client and buyers solicitors having exchanged contracts. The conditions of the sale included AUC incorporating 15 TPOs (Tree Preservation Orders) and ensuring that there was a ‘no development’ of the land clause to preserve the natural state of the land.

Client and buyer both happy with the outcome.

Laches

A defense to an equitable action, that bars recovery by the plaintiff because of the plaintiff's undue delay in seeking relief.

AU CONSULTANCY at Land Tribunal - Adjudicators decision

AU CONSULTANCY is pleased to report that following the 2 day trial at the Land Tribunal, the Adjudicator has given his decision and found in favour of our client.

Costs have also been awarded in favour of AU CONSULTANCYs client.

(A fuller detailed summary of the Adjudicators decision to follow...)

The Marriage Value

The marriage value represents the increase in the value of the e.g. in a block of flats, following the completion of the enfranchisement; their additional market value arising from the ability of the enfranchising leaseholders to grant themselves longer leases. In that this potential "profit" only arises from the freeholder's obligation to sell, the legislation requires that it be shared equally between the parties.

The legislation stipulates that for any flat held by a participating member where the unexpired term of the lease exceeds 80 years any marriage value is to be ignored.
Taking the following  figures as an example:
The improved value of the property is £1,650,000 from this is subtracted:
is the leaseholders' present interest £1,500,000 and the freeholder's interest £15,027
In this case the marriage value is £134,973

Taking the 50:50 split between the freeholder and the enfranchising leaseholders, the leaseholders would have to pay half this figure - £67,486 - in addition to the freeholder's interest.

In the above example it can be seen that marriage value can considerably exceed the value of the freeholder's interest. Its calculation is dependent upon the estimated increase in value of the flats and, clearly, the lower that increase the lower will be the marriage value.
This is an area where the input of a valuer with local knowledge is of paramount importance to both parties in order to provide substantive comparable evidence of the local market and how, if at all, flat values will be affected.
The longer the current lease the lower the latent marriage value may be, until eventually it becomes negligible.