Robinson & Hall was approached by a long-standing client for advice relating to a large equestrian unit with established livery business comprising 45 stables, a three bedroom house and two manèges with approximately 55 acres. The tenant had been in occupation for some time and had put in much of the livery infrastructure but had expressed a wish to retire at the end of the term, a little over a year hence. The client wanted to know what options were available to them to improve the return from the asset whilst minimising their exposure to financial risk and expenditure.
An analysis of similar lettings suggested that the rental return of the premises in its current form due to the work done by the tenant, was well below the market rent and as such the asset could provide significant income for the client. When presented with evidence, the client elected to re-let the holding. The decision was made to go with full marketing to attract a wide range of interest and adverts were placed in The Horse and Hound, Rightmove and UK Land and Farms which generated a large number of enquiries from all parts of the UK as far as Scotland and the West Country.
As the yard was to remain operative, accompanied viewings were strictly limited to three days to ensure security and avoid disruption. Offers were invited to be submitted on a fully repairing and insuring basis with a full business plan to support the level of rent tendered. These were then scored against pre-agreed criteria and shortlisted for interview for the client’s approval. The interview was carried out with the client and representatives of Robinson & Hall with the successful tenant being chosen on merit.
Following due diligence checks on the financial history of the successful tenderer, solicitors were instructed to prepare the necessary commercial lease documents.
Robinson & Hall’s involvement provided a tenant who was happy to work with the client and demonstrated a forward thinking yet pragmatic approach that instilled confidence. It was the tenant’s intention to make wide ranging improvements to the premises which were agreed to be left at the end of the lease term. Were the tenant to choose not to continue in occupation, the property could therefore then be re-let on potentially even more favourable terms.
The client benefited from a rental income, payable in advance, which was far greater than the outgoing tenancy. A sufficient deposit was held to minimise any risk to the client and the team ensured virtually no financial cost to them in terms of property maintenance. By working with both parties, any necessary repairs were either completed by the outgoing tenant or accepted by the incoming tenant as their responsibility.
Overall, the client’s asset was protected for the future and is now generating a welcome income, all with a minimum amount of input required from the client.
To find out how Robinson & Hall can help your business, please contact the Rural Property & Business department.Back to articles