Blog Posts: March 2009

This was publicised in the Telegraph today and is another piece of bad news for businesses struggling with their cashflow. The rateable value of some properties rose or fell in line with changes in rental values after the last revaluation on 1 April 2005 and 'transitional arrangements' were in place to phase in the increase or decrease in the rate bill. The next revaluation will come into effect on 1 April 2010. The current transition scheme operates over a four year period from 1 April 2005. T.... (read more...)

Landlords and tenants frequently agree terms verbally rather than having a formal written lease.  Three recent cases have examined whether or not these oral agreements are enforceable. These cases have confirmed that to be enforceable, an oral agreement must be: for a term of no more than 3 years at the best rent reasonably obtainable for the premises in possession (ie the term of the lease must begin immediately rather than at some date in the future) If you have entered .... (read more...)

According to a recent poll by SmallBusiness.co.uk, 80% of those polled said their banks have failed to offer support; 48% said their bank had no understanding at all; 28% said they had been supportive verbally but not in action; and 10% said that their overdrafts had been cancelled. On the positive side: 7% said their bank had been more supportive than expected, and 4% said they had been very constructive and helpful. With these sorts of client-care statistics, you’d expect any modern busi.... (read more...)

The latest figures from the British Retail Consortium (BRC) suggest things aren’t quite as bleak for retailers as the media have been suggesting. The Retail Sales Monitor January 2009, from the BRC and advisory services firm KPMG, shows values increased by 1.1% on a like-for-like basis when compared to the same month last year. This represents the best performance since May 2008, when sales were spurred by sunny weather. Interestingly food sales were the driver of the increase, displaying .... (read more...)

As cash flow is becoming an increasing issue for SMEs, we are finding that more and more creditors are issuing Winding-Up Petitions. These can be a very effective way of getting a company to pay its debts. A Winding-Up Petition will be delivered personally to the company’s office but, unlike most court proceedings, the documents do not state exactly what should be done when one is received. What must be done is to take immediate action and legal advice. If the matter is not resolved within.... (read more...)

Talking to clients I am conscious that the cost of business premises is concerning many business owners at the moment.  In the retail sector some businesses just can't meet their rents - hence the latest figures suggesting that 90,000 shops stood vacant across the UK in February. Premises are one of a business’ biggest overheads and so it pays to continually review what steps you can take to reduce your premises costs. I've just added an article with 10 tips for saving money o.... (read more...)

A "virtual assignment" is an arrangement under which all the economic benefits and burdens of a lease are transferred to a third party, but without any actual assignment of the leasehold interest. The perceived benefit of a virtual assignment has historically been that it effectively enables the transfer of a lease to take place without having to wait for landlord's consent. This device is normally used in large portfolio transactions, where there is not time to obtain all the landl.... (read more...)