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The 2024 Spring Budget; if you’re a holiday let owner, there’s good news and there’s bad news

The bad news; Tax reliefs which were available on rental income from holiday lets will be abolished from April 2025, meaning the profitability of holiday let businesses will be squeezed.

The good news; You may pay less when you sell your holiday let with a 4% reduction in the higher rate of Capital Gains Tax when selling your second property.

From April 2025, the Furnished Holiday Lettings tax regime will be aboloshed.  Previously, second home owners could benefit from a tax break of up to £4000 a year when making £30,000 a year in rent on their holiday lets, including making your second home available on websites such as Airbnb.  The removal of this tax break will make letting your second home a less lucrative option.

From April 2024, the higher rate of capital gains tax for second home and buy-to-let properties will be reduced from 28% to 24%, meaning landlords will be able to keep a larger portion of their profits from the sale of a second home, after tax.

If you will be affected by any of the changes made in the Spring 2024 Budget, get in touch with us today to see how we can help you.

Government release new BNG advice

The Government have just updated their draft regulations and guidance for mandatory BNG this week;
https://www.gov.uk/guidance/draft-biodiversity-net-gain-planning-practice-guidance
With the guidance showing that local authorities should expect BNG to at least be considered at planning application stage, it is important to start thinking about this now if you are looking to submit planning applications in the New Year.
Meller Speakman have a dedicated BNG Team to provide comprehensive guidance and support for BNG initiatives.
We have been advising on BNG for over 2 years and have a proven track record to deliver fast.
For more information call 01625 468 780 or email BNG@mellerspeakman.com

To Let – Bankside Farmhouse, Cheshire

Description

A detached characterful farmhouse situated in a rural location, in need of modernisation throughout. Set over two floors, the property benefits from 7 large bedrooms, a large garden mainly set to lawn with a mixture of traditional and modern farm buildings with a significant yard space.

Situation

Bankside Farmhouse is situated in an accessible rural location near to the village of Darnhall, with very good communications to surrounding towns and cities. The local town of Winsford is only 4 miles away with the large railway town of Crewe being less than 10 miles away offering a full range of local amenities/services

Farmhouse

The property briefly consists on the ground floor of three entrances, a large kitchen with adjoining pantry, a snug, with access via hallways to a dining room and reception room and a study and WC. The first floor is accessible via three staircases, these lead to seven large bedrooms, with two being en-suite, a large family bedroom and a further office/study space. There is a reasonably sized attic with three access hatches.
The garden sits at the front of the property with a good sized lawn area, and an area which is fenced suitable for poultry.
The farmhouse is in need of modernisation throughout. The incoming tenant will be required to undertake a program of refurbishment works to the farmhouse and traditional and modern farm buildings as set out in the Schedule of Works.

Farm Buildings

A mixture of traditional brick built and modern farm buildings are situated to the rear of the property. The buildings are detailed below:
(Approximate measurements only)
Building 1: Storage Building – Timber pole barn with corrugated tin roof and sides, concrete floor. (30m X 9m)
Building 2: Horse Stables and hay loft (Two Stories) – Brick built building with timber purlins and rafters under an asbestos roof. (15m X 6.5m)
Building 3: Car Port: – Timber frame with a tin roof and sides, concrete floor. (12m X 5m)
Building 4: Workshop – Steel portal frame under a fibre cement roof, rendered cement block walls, concrete floor. (32.5m X 11m)
Building 5: Hay barn/part covered silage clamp – Steel portal frame building under tin roof, timber sleeper wall to two sides. (18.5m X 13.5m)
Building 6: Loose Housing – Steel portal frame under a tin roof, concrete black rear wall with Yorkshire Boarding and tin sides and a concrete floor (33.5m x 8m)
Building 7: Loose Housing – Steel portal frame under asbestos roof, concrete block wall with Yorkshire boarding and tin sides and a concrete floor. (22.5m x 12m).

Land

The property sits within approximately 8 acres of agricultural land, with the majority being on a steep bankside unsuitable for agricultural machinery. The land is currently laid to permanent pasture suitable for livestock grazing and is classified as Grade three with freely draining slightly acidic sandy soils (Soilscape 10).
Ash Brook Ram runs along the field boundaries.
Mains water supply is available to the agricultural buildings.
The property falls within a Nitrate Vulnerable Zone.

Lease Details

The Property is being offered on a Full Repairing and Insuring Farm Business Tenancy in accordance with the Agricultural Tenancies Act 1995 for a period of 10 years. The incoming tenant will be required to undertake a program of refurbishment works to the farmhouse as set out in the Schedule of Works.
The work is to be carried out to a strict timetable, which will be checked and monitored by the Landlord and/or their Agents. A copy of the Schedule of Works is available on request.
A copy of the draft Farm Business Tenancy agreement will be available on the viewing days (to be confirmed); if you wish to request a copy beforehand, there will be a charge of £5.00 per copy.

Informal Tender

The Property is available to rent by Informal Tender.  

Information available on request.
For further details, please contact:
Meller Speakman
Tel: 01625 468780
Email: info@mellerspeakman.com

To Let – Hill Top Farmhouse, Cheshire

Description

An excellent opportunity to rent a large three bedroomed detached farmhouse set within 5 acres of permanent pasture land. The land is in good health and is suitable for equestrian and livestock grazing.
Access to the Property is via a 0.45 mile private drive, this will be shared by the local farmer to access the agricultural buildings.

Situation

Hill Top Farmhouse lies in an accessible rural location near the village of Darnhall, with excellent links to surrounding towns and cities. Winsford is just 2.5 miles north of the property offering a full range of local amenities/services.

Farmhouse

The Property briefly consists on the ground floor of an entrance hall with a door leading into a lounge and a further hallway leading to a dining room and the first staircase leading to one of the bedrooms. Access to the kitchen and pantry is accessed via the dining room.
The first floor is accessible via two staircases, the first off the main access hallway leads to one large bedroom.
The second staircase is located directly off the kitchen, leading to a landing, three large bedrooms and a family bathroom.
The garden wraps around the entire property with a large lawned area, which is enclosed by a mature hedge and stockproof fencing.
The farmhouse is in need of complete modernisation throughout, including an electrical re-wire and a central heating system. The incoming tenant will be required to undertake a program of refurbishment works to the farmhouse as set out in the Schedule of Works.
The Holding is located down a ½ mile farm track which is gated at the roadside.
 
Land

Approximately 5 acres currently laid to pasture suitable for livestock grazing with some enclosures capable of cropping. The land at Hill Top Farm is classified as Grade 3, drainage is slowly permeable and seasonally wet.

Lease Details

The Property is being offered on a Full Repairing and Insuring Farm Business Tenancy in accordance with the Agricultural Tenancies Act 1995 for a period of 15 years. The incoming tenant will be required to undertake a program of refurbishment works to the farmhouse as set out in the Schedule of Works.
The work is to be carried out to a strict timetable, which will be checked and monitored by the Landlord and/or their Agents. A copy of the Schedule of Works is available on request.
A copy of the draft Farm Business Tenancy agreement will be available on the viewing days (to be confirmed); if you wish to request a copy beforehand, there will be a charge of £5.00 per copy.

Informal Tender

The Property is available to rent by Informal Tender.  

Information available on request.
 
For further details, please contact:
Meller Speakman
Tel: 01625 468780
Email: info@mellerspeakman.com

ADLINGTON ESTATE PIONEERS BNG SCHEME FOR DEVELOPERS

The Adlington Estate, Cheshire, in conjunction with Meller Speakman and Tyler Grange, has identified and allocated land suitable for habitat enhancements to meet the demands of existing and emerging local policy surrounding Biodiversity Net Gain.

The Environment Act, which achieved Royal Assent in November 2021, puts a mandate on developers to leave the natural environment in a measurably better state post-development, and this is measured through a ‘Biodiversity Metric’. Whilst it won’t be legally enforceable until November 2023 via amendments to the Town and Country Planning Act, Cheshire East’s local policy requires all development to result in a net gain in biodiversity value, and this is enforced as a condition of planning permission.

The Adlington Estate has set aside an area of 27.5 hectares (68 acres) adjacent to Adlington Hall, to the north of Macclesfield.  The area comprises species-poor grassland, currently maintained as pasture via intensive cattle and sheep grazing which is typically low in biodiversity value.  The scheme offers scope for considerable BNG uplift through the creation of more species diverse grassland, tree / scrub and hedgerow planting.

Adlington Estate’s BNG scheme is available to developers that are working on projects where the development would result in an overall loss in biodiversity value which cannot be accommodated on-site.  Typically, an ecologist undertakes an assessment of the number of biodiversity units lost by the development and makes a requirement for the loss to be replaced, plus 10% (a net gain – although the 10% figure is not mandated in Cheshire East Council yet).  Using off-site habitat creation methods ensures the development remains compliant with local policy BNG requirements. 

The created/enhanced habitat(s) must be secured for at least 30 years as part of the planning obligations or Section 106 notices.  The developer has the option to deliver the scheme on or off-site by accessing a national register for net gain delivery sites, on which Adlington Estate will be registered.

Camilla Legh, owner of Adlington Estate, comments: “There’s a well-documented need for new housing in the UK and we’ve decided to lead the way on the BNG initiative to support developers in meeting their obligations.  We have very much look forward to seeing the habitat improvements  within the Estate and its overall sustainability offering.”

The Adlington Estate BNG scheme has already attracted interest from developers including Anwyl Homes, David Wilson Homes, Mansion House Group, Bellway and Barratts/DWH. Tyler Grange was appointed as the ecological consultants leading on the delivery of the habitat creation and management and continue to provide links between the Estate and the developer market in Cheshire.

Andrew Taylor, Planning Director at David Wilson Homes North West, comments: “Whenever we begin planning and building our developments, we take the greatest of care to ensure that we create a positive environmental impact and help to give nature a home. Adlington Estate’s proactivity and constructive approach to working with us to meet our sustainability and biodiversity net gain objectives was crucial to us gaining planning consent on this scheme and was greatly appreciated.”

Joseph Dance from Tyler Grange is leading on the technical delivery of the project and has developed the vision for the habitat improvements by working in collaboration with the Estate, Meller Speakman and their contractors. Joseph has said: “We’re all incredibly excited to deliver this vision for The Estate and to further establish The Estate as a net gain provider. It’s great to be able to meet the demand for BNG units in Cheshire by supplying developers with much-needed off-site units”

Adlington is a historic country Estate located in Adlington, Cheshire.  Originally built in 1480, the estate has been under the guardianship of the Legh family since the early 14th century and is currently managed by Camilla Legh. It is home to several residential property lets providing stable, long-term housing for local tenants and opens its doors regularly for house tours and garden open days.

For further information, contact:

jo.townson@mellerspeakman.com

Biodiversity Net Gain- What Landowners Need To Know

The principle of Biodiversity Net Gain (BNG) is now heading a full pelt towards the planning process with major implications for landowners and developers. Here are the basics.

BNG requires developers to ensure habitats are enhanced and left in a measurably better state than they were pre-development, delivering at least a 10% improvement in biodiversity. 

Whilst not yet a mandatory requirement, in February 2019 the National Planning Policy Framework (NPPF) was updated and introduced a requirement to ‘identify and pursue opportunities for securing measurable net gains for biodiversity’.  When the Environment Bill receives Royal Assent at the end of the year Local Planning Authorities will have a legal framework for targeting biodiversity enhancements. It is proposed that there will be a 2-year transition period but we are aware of authorities already imposing BNG.

Green field planning applications, even those benefitting from an allocation will need to ensure they are submitted with BNG in mind. For example, a residential development of 10 hectares will be expected to provide a ‘net gain’ of 10% totally 11 hectares elsewhere. If a local authority has a site already identified for BNG, then payment of a commuted sum through a s106 agreement may be possible.

Barrier or Opportunity?

For those promoting development proposals, the introduction of BNG is another barrier to delivery imposed by the planning system. Our very recent experience is one of a delayed committee date while the consultant ecologist tries to reach a palatable level of compensatory land with the Council’s ecologist. In this case, the applicant is fortunate to have land with limited development potential available. Had this not been the case, the Council’s consultation response was clear, planning permission would have been refused. A commuted sum in lieu of provision was not an option as the Council had no identified site where this sum could be spent.

Cost is another obvious impact arising from BNG. Developments already burdened with CIL and s106 requests will now have to factor in BNG delivery into their appraisals. The costs of BNG land will vary but whether it’s an impact of £12k or £200k per acre, the impact on a site’s viability will be challenging.

A further barrier imposed by BNG is its impact on site delivery. When will BNG be requested to be effective; prior to development commencing or triggered at some defined point of occupation? The former will necessitate compensatory land to be purchased and habitat created well in advance of the programmed site start.

However, BNG should be seen as an opportunity for landowners with land not benefitting from immediate development potential. BNG land can either be sold or leased (for circa 30 years) to a developer. On occasion and depending on the habitat to be created, land can be continued to be grazed. The value attributable to the land will ultimately be reliant on the availability of similar land nearby and how urgently the developer requires it.

At Meller Speakman, we benefit from a network of developer clients and landowners so are well placed to advise on the implication, good or bad of BNG. Contact Peter Wain or Mark Murphy for further information.

peter.wain@mellerspeakman.com

Septic Tanks

Is your property served by a Septic Tank?

The Environment Agency has made changes to the General Binding Rules which will take effect from 1 January 2020. These affect both new and existing septic tanks.

Septic tanks work by settling the solids within a chamber and then discharging the liquid septic effluent into the ground by a specially designed drainfield.

The General Binding Rules will no longer allow septic tanks to discharge effluent into watercourse from 1 January 2020. If there is an existing septic tank which does discharge into a watercourse the owner must either:

  1. Upgrade the septic tank treatment to a full sewage treatment plant or
  2. The discharge to the watercourse stopped and a connection from the septic tank to a drainfield connected

Drainfields consist of a number of rigid perforated pipes in a trench covered in drainage stone. The pipe allows the effluent to filter through the pipe and seep into the ground to be broken down further by soil bacteria. This is not to be confused with a soakaway pit or crates, which are not allowed.

Soakaways are primarily designed for draining rainwater thus not appropriate. Should a current system be used for draining septic tank effluent an application to the Environment Agency should be made or the system upgraded in line with the new legislation.

Septic tanks must meet the relevant British standard in force when it was installed. However, if a tank was installed prior to 1983 it does not have to meet the British Standard as they were not in place.

From 1983 they need to meet the relevant standard as detailed below:

  • – CE Marked
  • – Certification of compliance with British Standard
  • – The tank is detailed on the British Water’s list of approved equipment for BS EN 12566-1

Further regulations are applicable if your septic tank is located within 50 metres of:

  • – Special conservation areas
  • – Special protection areas
  • – Ramsar sites
  • – Biological sites of special scientific interest

Ensuring new septic tanks are of the correct size is key. Meller Speakman will be carrying out surveys of all managed properties on septic tanks over the next 12 months and advising clients of the necessary works.

Please get in touch if you would like us to advise you.