Where an asset has been held for a considerable period of time this can give rise to a problem which inhibits a sale, namely that the amount of Capital Gains Tax payable can mean there are insufficient funds to re-invest in order to obtain a similar investment return to that previously enjoyed.

If a property was purchased prior to 1982, the base value which is the trigger point for tax computation is that prevailing as at 5th April 1982 and often the ongoing base value can be indexed after that date.

This has the effect of possibly mitigating the Capital Gains Tax payable thus leaving further money available for re-investment.

It is becoming increasingly more difficult to value as at 1982 as databases are a much more recent phenomenon and where an asset was purchased prior to that date it is strongly recommended that a 1982 valuation be obtained at the earliest opportunity in order to be available in the event of a sale.

There are often ways of mitigating the amount of tax payable and further advice should be sought from a surveyor and an accountant in order to take advantage of this.

We have recently dealt with a situation and disposed of property held for many years which was producing excellent capital growth but inadequate income return for the client needs.

Following successful sales monies were subsequently re-invested and a substantially higher rental income was achieved.

We have recently been involved in the sale of three properties which were considered to be possibly ripe for development but where no planning consent had been obtained.

In each case we were able to sell unconditionally albeit with deferred completion periods and this had the benefit to the clients of the firm knowledge that the sale would be concluded.

The normal way of dealing with development sites is to enter into a conditional contract for sale with a developer. The developer wants to pay nothing for what is effectively an option and advances the argument that there is a payment by them in the cost of making the planning application.

The customary period allowed for a conditional contract is 18 months which creates time for the developer to make a planning application and if necessary to lodge an Appeal if a refusal is received or the planning outcome is not deemed to be satisfactory.

Developers will normally pay in excess of open market value by anything up to 40% to 50% as the development value of the land is often far greater than the value of the property presently occupying the site. Traditionally developers normally try and obtain more than one property to create a more comprehensive site.

The contract offered by a developer is often one sided and requires careful negotiation by both surveyor and solicitor to ensure it is workable for the potential vendors.

Dilapidations arise normally at the termination of a commercial tenancy and are where the landlord requires the property to be reinstated into the condition specified within the lease.

Potential assignees should be very aware when taking over a lease that they are inheriting any liabilities which would have vested in the previous party. There is an often spoken belief that the condition of the property is judged only from the date an assignee takes possession. This is incorrect as it stems from the commencement of the term.

We would always recommend a survey be carried out prior to entering into a lease commitment as without it a tenant would be unsure of quite what liabilities they may inherit. On many occasions the cost of compliance with a Schedule of Dilapidations can be in excess of £100,000 hence the need of expert advice. The Building Inspection Report can sometimes result in a rent free period being granted to defray the cost of carrying out the necessary repairs which substantially more than covers the cost of a Building Inspection.

Schedules are normally served at or close to the expiry of a tenancy and the tenant is liable to put the property into the state of repair specified in the lease. There are however some complicated exceptions in that the landlord is only entitled to either the cost of carrying out the works or to its loss if the works are not carried out (known as diminution in value of the reversion). There are certain statutory provisions which govern this and the landlord is entitled to the lesser of these two Heads of Claim. If a Schedule is received it is important to take expert advice as many of the items may not be properly recorded and can be challenged and the cost of works can be great. It should also be borne in mind that there is no right to carry out any further repairs after the expiration of the tenancy and all works to put the property in condition must be carried out whilst the tenancy is still in existence.