The Gazette 1974

ownership is set out in the code in great detail. There

is a presumption of condominium for areas or services

not shown to be exclusive to the owner, or to one iart

of the building as regards gas or electricity; further-

more, the plot of ground on which the building stands

is in common ownership, and no change can be made

save by unanimous consent of all the flat-owners. There

is also an interesting scheme of transfer in New York

State.

The major problems to be considered by the solici-

tor's profession are :

(1) The

attitude of the public

who dream of security

without responsibility.

(2) The

attitude of the legal conveyancers,

who keep •

forgetting the difference between the "letting" and the

"sale" of flats. As the sale is usually undertake by lease,

the deciding factor will be the size of the fine, corres-

ponding to the price of the sale.

(3) The

unknown future attitude of the

Judiciary.

It is not possible to predict what decisions the Judges

will give in the future in regard to conditions attaching

to the ownership of flats, but doubtless eventually we

shall be able to rely on some intricate principles enunci-

ated by case law. The principle that the expense of

any litigation involving common ownership should be a

common charge should be accepted.

(4) The

attitude of the building societies.

It is far

from clear whether building societies would be pre-

pared to make advances towards purchase of flats,

particularly if the flat could be forfeited for a trivial

breach of over-elaborate covenants.

The second lecture was given by

Mr. J. Mac D. Broad-

head,

M.A., F.R.I.C.S, M.I.A.V.I., on

"Property

Redevelopment"

on Saturday afternoon. He emphasised

that the basic assets of a nation were its land, and the

energy which the people on it displayed in cultivating

or using it. As regards land, the total amount of land

available cannot be increased, and the prosperity of our

community depends so much on agriculture that we

cannot afford to waste land. The notion of

"develop-

ment"

must arise from extending around and filling in

existing urban communities. The notion of

"redevelop-

ment"

involves demolition of existing buildings and

their replacement—it is the constant renewal of indivi-

dual structures or entire areas. Single building, or buil-

dings in a historical street should be preserved, if the

community pay the cost of preservation. If redevelop-

ment is desirable, the only replacements acceptable

would be those dictated by human motives, and not

merely by economics of size and mass production.

Redevelopment

Plan

is a co-ordination of advice

applicable to particular circumstances, supplied by

sociologists, builders and technicians. Inevitably appli-

cations for permission to redevelop areas of proven

commercial, industrial or residential worth will be

made; this redevelopment, which may be of national,

social and economic necessity, may have to be made by

means of persuasion against a given commercial trend.

There may be financial inducements but the determin-

ing factor which will encourage people to return to the

city centre will ultimately be the improvement of the

physical environment. In considering development,

there are three categories of clients who may be advised

in regard to development:

(1) The

impossibles

are the people who do not under-

stand what lies ahead.

(2) The

possibles

include the clients who have the

personality to master the technique.

(3) The

probables

include the entrepreneur and the

property owner.

It is essential for the client to be an unperturbable

man of vision, a co-ordinator receptive to advice, and

a decision maker who has finance available.

The professional team should consist of the property

consultant and an architect as well as a quantity

surveyor, and if necessary an economist. Of these, the

property consultant is most important, as he should

always be available to his client. The surveyor should

ensure that the scheme is acceptable to potential tenants

and supplies the maximum lettable facilities. The sur-

veyor and the architect should also be easily available

to the client. It is obvious that the property consultant

should be the person with the most suitable experience

and personality, be he architect or quantity surveyor.

If the project is big, it is necessary to establish good

public relations in order to satisfy all concerned.

Full planning approval, with all relevant documents,

should be obtained from the Local Authority in the first

instance. A financial analysis involving the whole pro-

ject will have to be undertaken at every stage of the

development, and more particularly at the proposal

stage, during acquisition, at the planning stage and at

the tender stage. The title should be a fee-simple one,

and it would be wise to estimate the rent which will be

current in two years by relating it to the current cost of

building. The method of acquiring finance for the pro-

ject, be it by means of short term loans, or of ground

rents, should be considered. Furthermore all matters of

transaction, such as stamp duties and value-added tax

will have to be fully considered. It is, however, essential

to acquire the premises speedily, even if they have to be

let for temporary convenience. The contracts with buil-

ders with all its attendant complications have to be

considered quickly, as well as the preparation of an

agreement for a lease, and of the lease itself. The ser-

vice charge insures that the rent received by the land-

lord is an absolutely net income, and is normally pay-

able quarterly. The lease is often for 35 years, and there

is a provision for rent revision every 5 years.

Messrs

John Buckley, Charles Meredith

and Maurice

Curran

gave respectively expert advice on the methods

of transferring property by the sale of shares, as well

as dealings with intricate questions of conveyancing

work, on Sunday morning.

Mr. Buckley emphasised that there had been a great

expansion in the purchase of investment properties by

financial institutions recently and solicitors working i

this field had grown. The notes are guidelines by

solicitor acting for a client who either owns property

which is based, or is about to be developed and leased,

prior to a sale to an institution.

As regards Title, special care should be taken i

relation to Title attaching to an investment. Many of

these spring from tax avoidance schemes, such as the

location of a multilevel leasehold interest in property,

with occasional options to purchase the leasehold

interests in the case of registered land.

Despite the attraction of a substantial saving it

stamp duties, financial institutions, which are also pub-

lic companies, may hesitate to purchase property by

means of the acquisition of all the shares in the owning

company, because the owning company, when acquired,

will be a wholly-owned subsidiary, and, save in the

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