Voltaire Financial have the pleasure in presenting our inaugural half yearly bulletin.
To view and download the full report click here
Sector Focus: The changing face of residential development finance by James Thomlinson
Hand in hand with the move away from super-prime property comes a shift in focus from zone 1 London into zones 2-6 and beyond; within Greater London still represents most lenders’ geographical sweet spot. However a growing number of lenders are prepared to look farther afield and in some cases venture deeply into the regions including the South West and North East.
There is no doubt that sentiment will continue to change during 2016 and in many ways this will be welcomed by the marketplace. The recent announcement that permitted development rights will be extended beyond the current deadline of May 2016 will maintain the fuel for what has been a very feasible type of development. We look forward to seeing what else the new year will bring.
Guest Article: Don’t get left in the dark; Problems arising from rights of light by Ian Rowson, Partner Head of Real Estate Freeths LLP London
Until the law is reformed, rights of light are still a topic that need to be treated with extreme care in the context of large-scale development and regeneration schemes in built up areas. Whilst the Law Commission has put forward certain proposals to significantly reform the law and one of the Judges in the Supreme Court called for reform in the Lawrence Case, a great deal of uncertainty still exists. In practice, because of the Heaney Case, rights of light are very difficult to obtain title insurance cover for.
For the time being on large schemes involving public sector bodies, the safest and most practical option appears to be to persuade the local authority to utilise its powers under s237 of the Town & Country Planning Act.
Tax Update: A brief guide to annual tax on enveloped dwellings (ATED) by Brian Dunk
Finance Act 2013 introduced a new annual tax on ownership of high value residential property held by non-natural persons.
The tax, known as the annual tax on enveloped dwellings (ATED), applies to residential dwellings owned by companies, partnerships (including limited liability partnerships) where there is a corporate partner and also collective investment vehicles.
Bridging Trends: ‘Bridge to Market’ by Andrew Hosford
There are a number of reasons that property developers need or want to increase the length of their development facility.
Cost overruns, planning enhancements or revised internal layouts and long periods of bad weather to name just a few. Though these factors are clearly not always developer faults and certainly not all negative issues, development lenders are often reluctant to extend their loans regardless.