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Tracking your property portfolio
21 May 2009
Most care providers have a mixed portfolio of land and buildings
to manage, which could include freeholds, leases and sometimes even
licences. Failure to have a clear record or database of what
property a care provider holds could open up a real risk of lost
opportunities, wasted costs and lost revenue.
What problems might property owners
encounter?
Typical problems which could arise where accurate information is
not properly recorded include confusion and arguments over;
boundaries, rights relating to utilities and services across
adjoining properties, access rights across adjoining or
neighbouring land, or disputes about restrictive covenants which
are placed on the land. In addition, simple everyday matters such
as parking rights, obligations to keep areas clear for vehicles and
who has the responsibilities for maintenance and repair of shared
areas can sometimes become the subject of disputes. All this
important information should be close to hand for a prudent
property owner.
Can leasehold properties be more problematic than
freehold?
Leasehold property can potentially add further issues or
concerns. Where the care provider is the tenant it is important
that key dates such as break dates (the right to terminate a lease
early) and rent reviews are properly noted and monitored. Break
rights often need to be triggered in advance of the break date
(usually 6 or 12 months before) and a failure to serve the
appropriate notice at the right time invariably means that the
right to terminate the lease may be lost. Rent reviews and other
key dates including the end of the term of the lease (where prompt
service of statutory notices can extend the tenant’s right of
occupation and provide a right to a new lease) should be kept a
close eye on.
What information should property owners know about their
properties?
Alongside having an understanding of key property rights and
responsibilities it is important to collate and preserve key
property documents that provide detailed information and relevant
plans. These will include not only the title deeds (including any
leases and unregistered agreements) but also other important
documents such as asbestos reports, health and safety reports,
building and maintenance plans, indemnity insurance policies,
wayleave agreements (for example relating to electricity cables)
and other property documents. A central record of contact
information for third parties associated with the land will also
assist when issues do arise.
What key questions should property owners be
considering?
Property owners should consider their property portfolio and key
questions they can ask themselves could include:
- Do you know where all your title deeds are stored?
- Are your title deeds properly protected, logged somewhere and
easily accessible?
- Are all your freehold properties registered? If not, should you
consider applying for registration first? (Registered properties
are easier to review and any transactions or advice sought will
probably be cheaper and faster as a result)
- Are all key property dates centrally recorded (i.e. break
dates, end dates for lease)? Who is responsible for ensuring these
dates are accurately recorded?
- What is your policy for considering action when key dates do
arise?
- Are your estate costs and expenses properly accounted for in
your budget? Ongoing maintenance of buildings, boundaries and
dilapidations liabilities are just a few of the provisions that you
may need to think about and cater for in your annual budget.
- Do your key property advisors (for example, lawyers and
managing agents) have access to this information or know where it
can be obtained?
Identifying one central resource for this information and
documentation can speed up sales and acquisitions as well as reduce
costs.
I have a large property portfolio but don’t have time to
manage it effectively. How can Browne Jacobson help?
We recognise the complexity of managing a property portfolio and
offer a service called ‘Tracker’, an online property system to help
property owner’s access and manage all their key property
information. It provides a comprehensive and secure online database
of all your property interests including freeholds, leaseholds and
licences.
The data is recorded by our experienced property team, who have
strong experience of dealing with property held by care providers,
thus ensuring the integrity of the data and at the same time
providing clients with the ability to store their own information
and documentation online. Tracker also reminds property owners of
key dates such as rent reviews and break dates. Simple and
intuitive, Tracker requires no lengthy training or complicated
software or hardware requirements and can help you manage your
property portfolio.
talk to us
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The content of this bulletin is provided for the purposes of
general interest and information. It contains only brief summaries
of aspects of the subject matter and does not provide comprehensive
statements of the law. It does not constitute legal advice and does
not provide a substitute for it.