Options to purchase

Article Abstract:

Planning obligations can present some difficulties for developers with options to purchase. The execution of a planning obligation is frequently the trigger for granting planning consent, but problems can arise because the main party to a planning obligation will be the landowner, rather than the developer, and the authority will probably demand that all those interested in the land, especially mortgagees, also carry out the obligation. Against this background, the developer's solicitor must pay particular attention to including appropriate 'co-operation' clauses in the option.

Laws, regulations and rules, Real estate development

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Foundation shift

Article Abstract:

It is possible to argue that some of the concepts contained in ground leases drawn up in the pre-recession period in the UK are no longer appropriate to post-recessionary market conditions. In today's climate, the development lease is probably the only structure which is suitable for landowners wishing to take a long-term view and seeking to hold a direct and marketable interest in their property. It seems that the only viable option is for all or a large part of the ground rent to be linked to actual rental income.

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Shorter leases are here to stay

Article Abstract:

The slump in the UK property market over recent years enabled occupiers to demand more from landlords. This situation is now gradually starting to change, with landlords having to give fewer concessions. However, it is unlikely that 25-year office leases will ever be widely used again. Long leases do not fit in with modern business practices, and new leases are more likely to be for 10 or 15 years. Institutions are now starting to accept that it unrealistic to expect occupiers to commit themselves for 25 years.

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