Singing Pig

Good morning everyone.

Looking for some advise for a friends sister. No, honestly it is true.

Sandy has a thrieving business in East London. Nice waterside location. The building is three floors split into five individual units. Sandy has approx 2500 sqr ft. She has a lease until end 2010. The other four units are let to none related companies.

 There are other similar blocks in the development that were all individually owned but are now under the control of a development company. The freehold of Sandy's block has not yet been purchased by the development company.

And now we get to the fun part.

Planning permission has been applied for. Demolish existing buildings and redevelop to approx 2.5 million sqr foot. Commercial and retail use. It is understood that this development needs to be completed prior to 2012.

So the question is to any one with experience of this. What is Sandy's lease worth?

She would need to be bought out of the lease as work on the development would obviously need to start well before the end of her lease. There are no clauses in the lease for early termination of lease due to re development. It is considered that the lease is water tight.

Any advise / info appreciated. 

Cheers

Andy 

1. check the plans to see how her specific block is impacted by the proposed development

2. ask her freeholder what is happening

3. take her lease to a commerical lawyer and have them make professional comment

4. the two years between the end of her lease and the 2012 may be enough for the works to be done 

Hi Longcross

Swift reply. Many thanks

1. The whole block and surrounding blocks are to be demolished.

2. The freeholder (his rep) is claiming that he has not yet been approached.

3. Can you recommend a couple preferably in town.

4. No way is that long enough. The planned development is huge and requires much underwater works and reclaiming first. Also bear in mind that all post development work (fitting retail units, letting office space) would be sold on the back of 2012 and hence need to be completed prior to that.

As a side example. A nearby freehold of approx 6000 sqr feet was sold to a residential developer. The lease holder has been offered 7 (seven) figures for the lease and a new unit once development completed.

Cheers

Andy