Fisher German magazine issue 2 Winter 2008

Winter 2008 | Issue 02

Seasons change Finding the upsides of the financial big freeze

Estate of play

Why Capesthorne is ready for the 21st century

Property Spotlight

Talk about it

Farms Estates Auctions Equestrian Rural residential

The benefits of mediation and arbitration

The future’s green Rural eco-housing that’s leading the way

rural • residential • commercial

www.fishergerman.co.uk

news&views WATERWAYS

Flowing with success

Inland marinas next to canal and river networks are one of the most profitable forms of rural diversification

Welcome to the Fisher German magazine Welcome to the winter edition of the Fisher German magazine.

We have all been shocked by the effects of the credit crunch on the banking sector and the effect on the wider financial world.

The current global financial uncertainty is forcing us all to take a closer look at the way we conduct business and live our lives.

At Fisher German LLP, we are not immune from difficult economic conditions, but our financial year so far is holding up well due to the diverse nature of our business. We have secured new work in a wide range of sectors as you can see from the news and views section and whether you’re thinking of a house move or not, there are still plenty of opportunities to make the most of land without selling. In saying this, we continue to conduct a significant amount of property, farm and estate sales, as you will see in the property showcase section.

In this second edition of our new magazine we have once again tried to cover a wide, interesting range of subjects to help you think about land in many different ways, perhaps giving you some fresh ideas along the way.

The next 12 months are going to be difficult, but with our talented, dedicated team, trusted contacts and loyal and diverse client base, we aim to guide you through to better times ahead, and identify the opportunities that will arise over the coming months.

Inside this issue news & Views

14 galloping ahead

See the profit potential of creating inland marinas and riding routes; how Fisher German is helping National Grid and the NHS; benefits of biomass energy production; plus stewardship updates

16 A place in the country

property showcase 10 Lie of the land

How the market for farms and large estates is thriving, despite the credit crunch

12 Time to bid

A new scheme that opens up auctions to new buyers

How the equestrian property market is weathering the financial crisis

Why it’s a good time for bold rural investors

features 18 Magnificent capesthorne Inside the 1,000-year-old jewel in Fisher German’s grand estate portfolio

20 green living

Eco-friendly rural dwellings are on the rise, and breaking new ground

Spotlight on services A complete range of services for all clients’ needs: 31 pipelines and utilities 32 sporting 33 inheritance tax 34 commercial property 35 minerals

22 pitfalls and ponds

Finding the perfect route for utilities

23 SHARING THE PAIN AND GAIN Exploring the issues around farm contracting

24 peace of mind

Managing compact estates

26 planning to win

Early planning can help residential sites

28 dispute resolution How mediation and arbitration can help

The Fisher German magazine is intended to be an informative guide. It should not be relied on as giving all advice needed to make decisions. Fisher German LLP has tried to secure accuracy and cannot accept liability for any errors, fact or opinion.

While commodity prices increased in 2006 and 2007 and enabled many farmers and landowners to rediscover what it meant to make a profit from farming, those prices have now fallen.

Yet production costs, such as fertiliser, fuel, sprays and labour, are still high.

Farmers and landowners need new ways to diversify into alternative sources of income. Tried and trusted ways of using existing property assets include converting redundant rural buildings, turning farmland into golf courses or obtaining planning permission for residential development. However, the planning process makes all of these options difficult to achieve, and the economic downturn has rendered them less economically sustainable.

There is however one development that few farmers and landowners have exploited, and that is the creation of inland marinas adjacent to canal and river networks. Due to demand for moorings, the capital return for a marina project is 20-25 per cent.

British Waterways, which is responsible for the UK’s inland canal network, has pledged to deliver up to 11,000 additional offline berths on its canal network by 2015. Its objective is to remove as many online moorings (ie on the canal) to offline moorings to free up navigation and also to satisfy the increasing demand for new moorings.

Fisher German’s Stephen Rice, who specialises in inland marinas, has recently helped a Northamptonshire farming family obtain planning permission for a marina at Yelvertoft.

This marina can house up to 150 long boats. It has been designed to create a natural lake, with attention paid to the ecology, such as the creation of wetlands for birds and vertical earth banks to encourage the reintroduction of water voles. “From day one my clients were committed to creating a canal-based marina that set itself apart from others,” says Stephen.

He says they recognised that the land they were considering for

the marina already benefited from a wealth of diverse wildlife, and so were determined to preserve the site’s integrity during construction.

Stephen and his clients worked together to submit a planning application to Daventry Council that satisfied the detailed planning policies and the Environmental Impact Assessments that had to be produced for such a complex planning scheme.

Planning permission was granted in 2008 and construction commences in 2009, with completion anticipated for early 2010.

Where landowners with permission for the construction of a canal-based marina have skill in controlling large projects, Stephen recommends that they should consider constructing the marina themselves, using approved sub-contractors. For example, Stephen’s Yelvertoft clients will oversee the construction of the project themselves, using him where necessary to advise on technical matters.

Plans for the Yelvertoft inland marina For any enquiries relating to either this particular marina or other potential opportunities, contact Stephen Rice on 01295 226297 or visit www.fishergerman.co.uk

Henry Sale and Andrew Jackson Managing partners Front cover photography by Seb Kingsley, employee, Fisher German

Fisher GERMAN Magazine

news&views

news&views rurAL CONVERSIONS

excellence in construction Building Consultancy team up for top award for Agardsley Park Court conversion

“Fisher German’s job is to secure easements and wayleaves from landowners”

london tunnels

London underground

Fisher German helps strengthen electricity links in the capital National Grid is working with Fisher German as part of its £3.5billion investment in the UK infrastructure for electricity transmission between now and 2011.

London accounts for 20 per cent of the UK’s electricity demand and this is continuing to grow by three to five per cent a year, compared to the annual UK average of one to two per cent. Four deep tunnels are planned for construction between 2009 and 2016 and these will house 400kv cables to secure electricity supplies to London.

One of the four planned tunnels will be built between Wimbledon and Kensal Green. A four-metre diameter tunnel, 12.4km in length, will be bored at a depth ranging from 20 to 60m below ground. Fisher German’s job is to secure easements and wayleaves from a wide range of property owners, as the tunnel is routed through Kensington and Chelsea, Hammersmith and Fulham, Wandsworth and Merton under parks, rivers, railways, residential and commercial properties, and land that is proposed for major redevelopment. l For more information, contact Trevor Beeston on 07816 108373, or visit www.fishergerman.co.uk

Fisher GERMAN Magazine

Fisher German Building Consultancy has recently been nominated for the Built-in-Quality Award for its work on the recently completed £1.5million barn conversion scheme at Agardsley Park Farm in Staffordshire. The award is run by the Local Authority Building Control and recognises excellence in partnership, innovation and sustainability in building construction.

Undertaken on behalf of the Duchy of Lancaster, the project involved turning dilapidated, redundant agricultural outbuildings into four high quality detached houses, with three to five bedrooms and extensive landscaping, for rental. The houses were provided with services such as water-harvesting tanks, which allow rainwater to be collected and re-used by occupants within the property and for watering gardens.

Sensitive treatment of the building fabric was also a key objective. One of the major successes of the project was in providing high quality, robust and modern fittings within the buildings, while maintaining the barns’ historic features, such as roof trusses and masonry piers.

Existing openings designed for agricultural use were retained during the works, with the internal floor plans designed to fit around the existing built form. Conserving the barns in this manner has meant that each dwelling has retained its individual characteristics, providing evidence of past use.

Being able to take a project from inception to completion, using Fisher German’s in-house services, ensured excellent efficiency and communication throughout the project, which was the principal factor in the success of the scheme. It generated wide interest from prospective tenants, with Fisher German’s Stafford office agreeing tenancy contracts for all four properties prior to completion of the works. l

Fisher German Building Consultancy has extensive experience in procuring conversion and refurbishment schemes, from inception to completion. Please contact Richard Benson on 01530 410825 or visit www.fishergerman.co.uk for further details.

agri-environment

changes in land Stewardship Important updates to all new ELS and HLS agreements Farmers and landowners who applied for Environmental Stewardship after 15 August 2008 should be aware of the latest important changes to agrienvironment schemes.

Entry Level Stewardship (ELS) and Higher Level Stewardship (HLS) have been available to farmers and landowners since August 2005. There have already been some changes with the withdrawal of management plans under all provisional agreements issued in 2007. The latest changes mean all applications received after 15 August 2008 will be subject to new, more restrictive handbook rules.

In particular, those farmers giving up or taking on land need to make sure that Natural England is notified of changes within three

months, while those taking over Fisher German has obtained over land must apply to enter land £100,000 capital works for a client within four months. for the first tranche of agreed In addition, HLS funding has capital works, in addition to the significantly increased this financial annual payments. year, and farmers and landowners There will also be increased should be aware that significant flexibility in new HLS schemes, additional funding is now available whereby officers are able to fit and applications are currently existing management practices being viewed favourably. This to scheme options rather than the other way round. In the past, there means that farms, other than those with Sites of Special Scientific was little room to work outside Interest (SSSIs), will now have a the prescriptions noted in the much better chance of being various options. But now there is accepted into the scheme. a willingness to use the options Fisher German’s Philip Hulland as a guide for suitable payment emphasised the importance rates to apply to a particular of negotiating the best deal management system. l financially and practically with the For further information call Philip Hulland local Natural England officer, rather or James McIntyre on 01785 220044 than accepting what was initially or the Farm Consultancy team on 01858 put on the table. For example, 410200 or go to www.fishergerman.co.uk

Fisher GERMAN Magazine

news&views

news&views tax

what a relief

Keeping up to date with Inheritance Tax relief on agricultural land is of utmost importance for landowners

Biomass produced: a wood chip factory energy

turning up the heat Switching to biomass heating as a heat source can offer numerous benefits, from sustainability to reducing costs With gas increasing by up to 35 per cent, electricity by up to 10 per cent and water due to increase by up to 10 per cent, more people are looking at alternative sources of energy to reduce running costs and lessen their carbon footprints.

More and more farm and estate owners are turning to biomass heating to replace existing oil or gas heating systems in houses, offices, commercial units and grain storage. And the benefits of biomass heating are clear: a reduction in running costs by up to 80 per cent, self sufficiency of fuel supply and a reduced impact on the environment.

Many reliefs and allowances can be applied for when businesses install qualifying energy saving equipment, including the 100 per cent Enhanced Capital Allowance. Various grants, of up to approximately 40 per cent of the cost of installation, are also available depending on the system and your location in the country.

Fisher GERMAN Magazine

Most systems are installed with a gas or oil back-up boiler adjacent to the biomass boiler, which serves two purposes. Firstly if the biomass boiler breaks down (for example, if the intake auger gets blocked or stuck), the backup boiler automatically kicks in and an alarm can be raised via a remote connection to pinpoint the problem to the maintenance staff.

The second function of the backup boiler is to aid at peak load times.

So, for example, if all users were to turn their heating up on a cold morning, the back-up boiler could help the biomass boiler provide enough heat to service the demand.

The heated water can be circulated to all the consumers via a highly-insulated pipe work that only loses around 0.5ºC per 500m. l For more information contact Seb Kingsley or Henry Sale on 01858 410200 or visit www.fishergerman.co.uk

Don’t let the grass grow on your agreements

“The executors argued that the deceased had been producing a grass crop”

The impact of Inheritance Tax can be greatly reduced by the application of Agricultural Property Relief (APR) and Business Property Relief (BPR).

However, these valuable reliefs can be lost if the actions of the parties and the documentation between them is either incorrect or out of date.

This issue recently arose in a case involving a sizeable farmhouse with large areas of land subject to various arrangements. In considering the matter, HMRC enquired into the arrangements because if they constituted a letting, the land would be excluded from the assessment of character appropriate with the attendant risk of losing APR on the agricultural value of the farmhouse. Upon review Fisher German was able to satisfy HMRC and the relief has remained intact.

Although the area of land was relatively small, the effect of getting it wrong has been recently highlighted in the Special Commissioner’s decision of McCall v HMRC. In this case, a Mrs McClean had allowed local farmers to use her 33 acres of land in County Antrim for grazing under an agistment agreement. In the seven years prior to

her death Mrs McClean had become unwell and her son-in-law overlooked the arrangements and inspecting the land.

At the time of Mrs McClean’s death, the land had attracted a development value substantially in excess of the agricultural value. Although APR was available to relieve the agricultural value, the development value premium fell to be taxed unless the executors could prove that Mrs McClean was carrying out a business on the land that was not wholly or mainly an investment business.

The executors argued that the deceased had been producing a grass crop and selling it to the grazier. But in the agreement between them, the grazier was responsible for fertilising the grass.

The Special Commissioner decided that the claim for BPR failed because it was an investment business that comprised the letting of land. Charles Meynell at Fisher German, says: “We advise our clients to regularly review their IHT position and ensure that all agreements are properly prepared and that the parties act in accordance with the terms. Failure to do so can provide no relief at all.” l

For more on grazing agreements, call Charles Meynell on 01785 273999 or visit www.fishergerman.co.uk

Advice

keeping the nhs in contact NHS trusts advised on moving telecoms equipment Fisher German’s specialist telecommunications team is currently advising many NHS trusts on a range of

specialist property matters concerning existing telecommunications equipment located within their estates.

Much of the advice being provided by the specialist team is aligned to various NHS trusts’ ambitions to redevelop hospital facilities under private finance initiatives or to sell parts of their

estates to the private sector for possible future development.

Fisher German is also advising the trusts on the options available to them for removing or relocating the operators’ telecommunications equipment. This ensures that vacant possession can be achieved by a given date. l

For further details on this and other telecommunications professional matters, contact Christopher Hicks on 01858 411202 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine

news&views

news&views new offices

land Diversification

route with a view The Crosby Estate opens up to give riders a beautiful change of scenery Merseyside’s newest and only UK Chasers horse-riding course has just opened with the assistance of Fisher German. A four-mile off-road farm ride has been created around the 1,500-acre Crosby Estate, eight miles north of Liverpool. The estate has been owned by the Blundell family for no less than 22 generations.

Fisher German, which specialises in looking at opportunities to help its clients diversify their land, assisted the family in establishing this circular ride, which encompasses picturesque scenery, field boundaries and woodland tracks, with more than 20 jumps, a water splash, logs and fences. The cost of the project was assisted by 50 per cent European Grant funding.

“We spotted a gap in the Merseyside market for this interesting off-road ride,” explained Richard Baker

of Fisher German. “Facilities for horse owners and riding clubs or organisations in the area are limited. The nearest comparable facilities are some 22 miles away at Willaston.

Alongside our involvement, the project was undertaken in conjunction with UK Chasers who helped with the marketing, design and implementation of the ride.”

Landowner Mark Blundell added: “Equestrianism is one of the fastest growing rural industries. We want to welcome horse owners to this family estate and, in an area dominated by tarmac, give them the opportunity to ride safely across miles of grassland tracks and woodland rides.” l For further information call Richard Baker on 07786 336925 or go to www.fishergerman.co.uk

Onwards & upwards What to expect from two new Fisher German offices

Six months ago, Fisher German LLP acquired the John Royle practice in St Helens, Merseyside, and John Hopkinson & Co in Newark, Nottinghamshire. Thanks to all parties, a smooth transition has already witnessed growth in both offices.

“I am delighted with the merger process and the efficient way in which the acquisition has taken place,” said John Royle of Fisher German’s St Helens office. “How often do you hear of mergers not working, even in the early days, because compatibility is an issue?”

St Helens In addition to its core business managing estates, Fisher German is now keen to expand this office to provide further services in the management of service charges and valuations, as well as surveys in rural, commercial and country residential property.

Fisher German partner Richard Baker is now responsible for the St Helens office, while John Royle is continuing to act as a consultant to assist with the handover and continuation of client matters. Sheila Coulton and Amanda Adams, who worked with John prior to the acquisition, are still providing support and services to the office.

The nearest Fisher German office to St Helens is Knutsford, and there is a strong link between the two offices, providing services not only for Lancashire and Merseyside but all other locations between the two.

Newark

“Horse owners can ride safely across miles of grassland tracks and woods” Fisher GERMAN Magazine

Richard Baker and John Royle of St Helens

This office specialises in agricultural and rural matters, particularly valuations, property and land sales, property management, farms advice, planning and development. It has long been involved in agricultural property sales and its experience in valuations extends to farms, estates, residential property, woodland and other amenity assets. In terms of planning and development, the team can advise on residential, commercial and agricultural development schemes.

John Hopkinson reiterated John Royle’s comments above and said he was very pleased with the increase in the

The team outside the Newark office

type and scope of work that can now be undertaken from the Alverton-based office as a result of the merger.

Joining Dawn Webb and John Hopkinson, who has 35 years experience in the sector, are partner Richard Scriven, with 14 years experience, and James Goodson. A specialist in farm consultancy, James also brings expertise in farm business structure, strategic direction, business reviews and appraisals, as well as managing a large number of contract farming and joint-venture arrangements.

He also advises clients on Single Farm Payment issues, as well as EU legislation and Conservation Grant Schemes.

From its base in Alverton, Newark, the office covers Nottinghamshire, North Leicester, Derbyshire, South Yorkshire and areas of Lincolnshire. l Call St Helens on 01744 451145 and Newark on 01949 851815 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine

property showcase

Ashford Hall Estate: An impressive property in the Peak District

Ashford Hall Estate, near Bakewell

This estate is described by David Legh at Fisher German’s Stafford office as one of the finest country houses in Derbyshire. It enjoys a magnificent position, and includes fishing on the River Wye, a 150-acre farm, woodland, three secondary houses and a cricket ground. The estate has been sold privately prior to any public marketing.

Lie of the land

How the market for farms and large estates is weathering the credit crunch Estates and farms

I

n early spring, the market for estates and farms was flying, with much talk of decent bare land at £6,000 to £7,000 per acre, and in some cases even more. However, by September a drop of about £1,000 per acre from those dizzy heights was an easy summary.

Now, following weeks of unprecedented turmoil and confusion in the global money markets, further lowering of sights will probably be necessary.

Activity from buyers has fallen away and a few properties have even failed to sell, usually because the price was set at the height of the market.

If one looks now at £5,000 per acre (as an average), replacing the £6,000 to £7,000 in the spring, it represents a fall of about 20-25 per cent. Some might feel that figure to be too strong, but it is not as painful a fall as most of the other investment sectors over the same period.

To lift the gloom, there are definitely still buyers out there, and most don’t need to borrow money to make their purchases. Some still have development proceeds to reinvest. Most farmers still want to buy extra land when the rare chance to do so arises, and many

10 Fisher GERMAN Magazine

people who can afford to do so still want to live in the countryside.

For that reason we see no cause to expect further price falls, subject to further unprecedented outside influences. What we are likely to see, with demand thinning, is a more unpredictable market, with the odd property not attracting interest at normal levels.

On the market

In the north, the 250-acre Ellercourt Farm near Goole in Yorkshire has now been sold, excluding the house. Offers for the whole exceeded the guide of £2.5million. In Staffordshire Fisher German has for sale, at a guide of £2million, a former dairy farm of 178 acres, while in Derbyshire the Ashford Hall Estate near Bakewell was sold privately (see box, right).

To the south, College Farm in Wendlebury, Oxfordshire, is for sale at a guide price of £1.85million. At 244 acres, this includes opportunities for agricultural, equestrian and free-range egg enterprises. In the same county, on the Warwickshire border, Fisher German is re-offering Hornton Grounds Farm and Manor Farm in Hornton, having been let down by a previous potential purchaser. With a guide price of £6.5million, Hornton Grounds Farm includes 723 acres of mainly arable land, an impressive house and two other dwellings, as a whole or in lots. Manor Farm

This page: Connington This page: Connington This page: Connington This page: Connington

Conington Estate, Cambridgeshire The impressive estate, including house, woodland and airfield, is now sold

is smaller at 123 acres, with a three-bedroom bungalow, a range of buildings and a guide price of £850,000.

In the east, we have acquired on behalf of clients an 850 acre farm with various dwellings in Lincolnshire (guide price £6.5million), and completed the sale of the Conington Estate in Cambridgeshire for in excess of its guide price. This was a large and diverse estate with a commercially operated let airfield covering around 2,210 acres. The estate had been managed and sold by John Palmer of the Market Harborough office and was acknowledged by another firm of agents as the largest sale in that area for some time. John continues to manage the retained part of the estate.

In the West Midlands, the Worcester Office is dealing with a number of properties across the Worcestershire and Herefordshire area. While in Shropshire, Fisher German is offering Ashford Grange, near Market Drayton, a well-equipped dairy farm extending to 406 acres of Grade 2 and 3 land. This has a guide price of £4million.

For more details contact Charles Haselwood on 01295 271555, or visit www.fishergerman.co.uk

Ashford Hall Cottage

Fisher FisherGERMAN GERMANMagazine Magazine11 11

property showcase Auctions

Time to bid

Success in selling at auction has led Fisher German to launch a new scheme that aims to open up auctions to more potential buyers

F

isher German’s auctions team has enjoyed a successful and interesting 2008. Some 65 out of 87 properties have sold up to October this year, with a total value of over £11million – already over 40 per cent more than the total value achieved last year and nearly double the amount of properties. In previous years no more than 12 properties were ever on offer in one auction, but 2008 has already seen two auctions with 17 lots.

Andrew Ranson of Fisher German says this accomplishment is partly down to the current uncertainty in the market. “These difficult conditions actually suit auctions rather well, as they offer the advantage of having a same-day conclusion,” he says. “At the fall of the hammer, there is a binding contract.”

On the back of the auction team’s success, Fisher German has launched the new concept of Conditional Auctions, in an effort to open up auctions to the wider market.

“The current market is absolutely ripe for this sort of innovation,” says Andrew. “This new type of auction is appealing to realistic vendors who either need, or perhaps have been struggling, to sell. There are numerous advantages of auctions, but delivering a legally binding deal is key to many at the moment.”

So, how do Conditional Auctions work? Bids are made in the usual way and the successful purchaser: • Pays a £3,000 non-returnable deposit, rather than 10 per cent • Signs the sale contract as normal, but this will be conditional on obtaining finance • Then has six weeks to get finance in place and a further two weeks to complete. Only if the finance is refused directly due to a fault in the property will the deposit be returned to the buyer.

One interesting lot that went under the hammer in June was The Cottage in Farthinghoe, between Banbury and Brackley, Oxfordshire. This three-bedroom stone cottage had not been lived in for 40 years and was therefore requiring complete modernisation. During the marketing, planners also ruled that planning permission would be required for whatever use was intended for the property. However, with a guide price of just £90,000, after some 47 viewings the property made £154,000 at auction.

A more recent success was North Lodge, Dumbleton, in a prime location on the edge of the Cotswolds just inside Worcestershire. This exceeded all expectations at auction in October following some fierce competition and 54 viewings. This three-bedroom former lodge house requiring modernisation sold for £400,000 following a guide of £300,000 – proving that the market is not dead for all types of property.

At auction with Fisher German in November is Old Montague House in Hethe, near Bicester, Oxfordshire. This attractive Grade II listed farmhouse is in need of complete restoration and has five bedrooms and three reception rooms. It is set in two-anda-quarter acres, with outbuildings and paddocks and has a guide price of £550,000.

For further details, contact Andrew Ranson on 01295 226288 or visit www.fishergerman.co.uk

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Old Montague House: This Oxfordshire property is for auction in November with a guide price of £550,000

The Cottage: Despite needing huge modernisation this sold for £154,000

Inside Old Montague House

North Lodge: Exceeded guide price by £100,000

Fisher GERMAN Magazine 13

property showcase

“The growth in the equine leisure industry has been extraordinary”

South View Farm, Oxfordshire, available for sale at £1.25million

Eaglesfield Farm, Leicestershire. Guide price £600,000

In an unsteady market, equestrian properties are still in demand

Equestrian

Galloping ahead

Demand in the equestrian sector continues to progress well in spite of the general economic uncertainty

F

isher German’s Equestrian department was created only 18 months ago, but the equine property market has responded quickly, seeking to use its dedicated team’s skills to sell at the best possible price. With an experienced operator in six of Fisher German’s main offices, the team provides comprehensive coverage of the Midlands.

The sale of a racing yard at Adstone in Northamptonshire led the team to marketing another establishment in Twyford, Buckinghamshire, and valuing similar properties.

Numerous houses with land have been showcased through the department, resulting in sales across the Shires. Fisher German’s agents have also handled a variety of land deals with buildings suitable for equestrian use and/or stabling and other facilities including gallops, indoor schools, equine pools, a manège and a horse walker.

14 Fisher GERMAN Magazine

Twyford Mill, Buckinghamshire

As this year has progressed the market for domestic residences has weakened due to the credit crunch and the uncertainty of property pricing. However, the demand in the equestrian sector of the market has held up well so far, better than the domestic residential market.

The growth over the past few years in the equine leisure industry has been extraordinary and this has generated demand for properties, whether these are houses or buildings with land or an established unit.

Some buyers will act cautiously at present, while others will jump to purchase the property of their dreams, knowing that the supply of such properties is very small. In the land market, there is still strong demand for paddocks and arable land from farmers, and equestrian buyers are having to be extremely positive to secure these parcels.

If you are seeking a few acres and stables, house and land, DIY yard or training establishment, contact your local Fisher German office. Equally the firm can advise clients on management issues and lettings.

The Knutsford office has recently assisted a family-run estate to develop a circular four-mile ride only eight miles from Liverpool, in conjunction with UK Chasers (see page eight).

The Banbury office offered and sold a number of equestrian properties while carrying out a series of business reviews, including one for an equestrian centre with over 70 existing liveries, indoor school, dressage and other facilities.

The Market Harborough office, being within close proximity to the Quorn, Cottesmore, Fernie and Pytchley hunts, remains extremely active on paddock sales and period village or country homes with stabling.

The Worcester office is continually receiving enquiries from those requiring more acreage and a quieter rural position, so the demand still outstrips supply in its region. To illustrate this, a farm was recently auctioned that had equine potential and sold for £910,000, having been guided at £700,000.

For more information on equestrian properties contact Robert Russell on 01295 226284 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 15

property showcase Manor Farm: A fantastic property now on at £850,000

Mayfield Hall: On the market for £2.2million

A place in the country With a little courage and a lot of prime properties available through Fisher German, buyers can take advantage of current market conditions

Smisby Manor: Now for sale at £1.85million

Middleton Hall: A recently sold Grade II listed building

Rural residential

T

he press are continually reporting doom and gloom for the residential property market. However there are bright spots, with the number of houses being sold that would be considered to be a good market in the early 1990s.

Looking at the Nationwide Index of residential prices, the market has risen 45 years in the last 50. This will be only the sixth year in the last 50 that residential prices have dropped. With the rapid readjustment in market conditions, it is inevitable that the market will start rising again; the question is, when?

Demand currently outstrips supply: buyers having neither confidence nor ability, as they are unable to sell their properties or raise money. But with little house-building and continued growth in households, it’s inevitable that a balance will have to be found again.

In every market there are opportunities particularly for those who want to move upmarket. The gap between what is sold and the next property is closing. If buyers have the nerve, they may be able to grasp the opportunity and buy the house of their dreams at a price that they could not have considered earlier in the decade.

Quality is still selling, and houses in prime locations always attract interest. Creaton House overlooking the green in the popular Northamptonshire village of Creaton, is a good example.

This property attracted many viewers and a buyer through the Market Harborough office at just under the asking price. Again, another house that sold quickly was Pophleys Bloxham – a prime village, but this time in Oxfordshire. Priced at £385,000, it quickly went under offer though the Banbury office.

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One of the most interesting properties on the market at the present time is Manor Farm, Bradden, Northamptonshire, a picturesque village close to Towcester and convenient for Milton Keynes. Fisher German succeeded in achieving planning permission for a number of barns surrounding Manor Farm.

Two were converted – one of which has now sold, and one remains unconverted, again which has sold. Manor Farm House itself is on the market with seven bedrooms and a flat for the price of £850,000.

The Ashby office has had success in selling country houses in the Peak District, including Middleton Hall, a Grade II listed hall dating from the 17th century. Further south, near to the southern tip of the Peak District, Mayfield Hall is currently on the market for offers in the region of £2.2million. Dating from the 18th century, the property has been restored over the last few years and has a substantial range of outbuildings with permission to convert to holiday lets.

Nearer to the Ashby office is Smisby Manor in Leicestershire, a Grade II listed house with a traditional courtyard and buildings converted to six apartments, a stable yard with 18 stables and eight acres. Offers are invited at £1.85million, although the house is available with the stables and seven acres for £1,245,000.

As the year draws to an end, we must remember the mood was cautiously optimistic at the beginning, and this shows that sentiment can change. l For details of residential properties for sale, contact Richard Clowes on 01858 411209 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 17

feature | capesthorne

“Woodlands I helped to plant 30 years ago are now flourishing” Chris Henretty, Fisher German

With over 1,000 years of history, the Capesthorne Estate is one of the jewels in Fisher German’s portfolio

Magnificent Capesthorne

R

oman legions passed across it.

Titled Norman families hunted on it. In the Civil War its Royalist owners helped Charles II to escape after the Battle of Worcester, while soldiers were nursed there during the Second World War. Throughout the centuries, Capesthorne has played an important role as one of the premier estates in Cheshire, and it is showing no signs of slowing down in the 21st century.

Situated over 4,800 acres, three miles south of Alderley Edge in Cheshire, the estate has 180 separate tenancies, including 25 dairy and arable farms, residential lettings, offices and workshops, telecom sites, a silica sand quarry that supplies Pilkington Glass, woodlands, coarse fishing lakes and even a paintballing site.

Then there is the superb Grade II listed Capesthorne Hall. Said to have a longer frontage than Buckingham Palace and a windowpane for each day of the year, the Hall was built between 1719 and 1732 and has been open to the public since 1954. It has a unique

18 Fisher GERMAN Magazine

family theatre, which dates from 1890 and is still used for operas and plays, and an impressive collection of fine art, sculptures, tapestries and antiques from Europe, America and the Far East. The Hall is also licensed for civil ceremonies, and is used for wedding receptions and many corporate activities.

In 1990, the Hall’s interior was redecorated by the present owner’s wife, Lizzie Bromley Davenport – also known as the American artist E.B. Watts. Her clever use of vibrant colours and modern fabrics has transformed the inside of the Hall, while at the same time paintings have been cleaned and the furniture and sculptures restored. It’s no surprise that Capesthorne Hall alone attracts 50,000 to 60,000 visitors each year.

Such a large and diverse estate requires scrupulous day-to-day management, which is where Fisher German land agent Chris Henretty steps in. Chris has been involved with Capesthorne since 1978, and is in charge of every aspect of its management.

Alongside the Bromley Davenport family, which has owned the estate for eight

generations, he has guided Capesthorne through many changes.

“I would say the biggest achievement over the past 30 years has been to turn the estate from being primarily agriculturally based, with farming at the forefront, to adapting with the changing times and making sure all its assets are being used,” he says.

In the past 20 years, Capesthorne’s income has become less reliant on agriculture and moved towards a more varied profile. “Redundant farmsteads have been converted into offices and workshops, residential properties have been modernised, and re-let rather than sold, and many leisure pursuits such as sailing, fishing, shooting and camping have been developed,” explains Chris.

This evolution is also reflected in the estate’s annual income. In the 1980s, 89 per cent of its turnover came from agricultural activities and letting farmland, whereas 20 years later this is down to 47 per cent. Over the same period of time, rental income from houses and cottages has grown from three per cent to 28 per cent, and income

Gazebo (left), drawing room (top), Capesthorne Hall (middle and right), the proposed Pavillion (bottom)

from commercial activities has grown from two per cent to 20 per cent.

Chris manages Capesthorne from Fisher German’s Knutsford office, working on site around three days a week. His role involves everything from planning the weekly meetings, signing all the cheques and organising any work that needs to be done, to managing the three catering companies that work at the Hall and arranging the shooting budget and the beaters’ pay.

“It’s an extremely worthwhile job, especially when you see the changes you have helped to implement bear fruit,” he says. “For example, the woodlands I helped to plant 30 years ago are now

flourishing, and it’s great to see the farms and various businesses on the estate grow and succeed.” These include a smithy, a post office, a pilates studio, a travel agent, a boat repairer, a kitchen manufacturer and a wine merchant.

Although Capesthorne is now fully tenanted, Chris points out that Fisher German continues to research and identify areas that will further diversify the estate to ensure it remains a profitable business. For example, in autumn 2008, change of use was granted to convert part of Capesthorne Hall Mews Yard into the high-tech Carriage Office. The plan is to eventually convert the whole yard into a vibrant office

Visit the Capesthorne Estate Capesthorne is open every Sunday and Monday and on bank holidays between April and October. For more information on visiting, events or corporate hire go to www.capesthorne.com or call 01625 861221.

To find out more about managing this estate call Chris Henretty on 01565 757970 or visit www.fishergerman.co.uk

development, over a five to 10 year period, across the currently redundant stable and garage buildings, which will provide additional revenue.

This summer, planning consent was given to erect a temporary, self-contained structure known as The Pavillion.

It can cater for up to 350 people and offers dining and entertaining facilities suitable for events such as receptions, product launches, weddings, parties and charity occasions. The income from this will enable outstanding repairs on the Hall to be completed.

A further development of a disused 6,500sq ft farmstead is intended for 2009/10, where small units of up to 500600sq ft are planned to cater for small businesses, due to the strong demand for this type of letting.

“Capesthorne is a very complicated estate because there are so many different things on it – and you can see that there are even more things planned for it,” says Chris. “But although this makes it a challenging estate to manage, it is also one of the most rewarding things about the job.” l

Fisher GERMAN Magazine19

feature | environmental

green living

Environmentally-friendly dwellings in rural areas are not only becoming more innovative, but also more familiar

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n these eco-conscious times it seems many people would like to live in greater harmony with their natural environment. Much discussion about green homes has focused on the sustainable growth of cities or controversial eco-town proposals, but environmentally-friendly living is possible in the countryside too.

Fisher German is at the forefront of efforts to produce rural housing that will set the example for a new generation of eco-friendly dwellings. “Our clients are keen to have environmentally cuttingedge schemes,” says the firm’s head of planning, Kay Davies.

Fisher German played a vital role in gaining planning permission for one of the UK’s most innovative eco-friendly homes at The Dumble in Derbyshire, which is set to be featured on Channel 4’s Grand Designs (see main pic and box, below right). Linking up with the house’s designers, the firm has formed a new venture, Home Revolution, which aims to deliver further groundbreaking projects across England and Wales.

Fisher German also assists with the delivery of sustainable projects, such as the intelligent solution that it helped to find for a challenging site at Southam in Gloucestershire (see box below).

Case study: Southam When Yan Gittins of Fisher German was asked to sell a building plot in Southam, he knew it was going to be a challenge. The hillside site had spectacular views over the Cotswolds, but it was tiny, occupied only by a wooden hut built as a temporary dwelling in the 1920s.

In order to get the best possible price, he somehow had to demonstrate that a much bigger home could be built there. However, the plot lay in the Cotswolds Area of Outstanding Natural Beauty, so any building had to make minimal impact on the landscape in order to gain planning permission.

Worcester-based Ivy Architectural Services was employed to design a high quality, contemporary scheme to blend into the surroundings while providing as much living space as possible. It came up with an ingenious design for a two-storey house, partly built into the hillside. This will be built from local materials, such as quarried Cotswold Stone, and will also feature a green roof planted with sedum and curved to merge with the undulating green of the surrounding hills.

After months of hard work Fisher German secured planning permission, and has been retained to sell the land: “It shows that we can think outside the box,” says Yan. “We can come up with contemporary, eco-friendly The innovative eco designs and show real flair in order to house design maximise our clients’ assets.”

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“It’s a myth that living in a rural area is inherently unsustainable” By introducing cutting-edge green design and technology, landowners can maximise their chances of getting planning permission for houses in rural areas. The building of homes in the open countryside is generally prohibited except for agricultural, equestrian or other specifically rural uses. However, under government planning guidance, exceptions can be made for properties that set an example for best practice in housing design and construction.

“The bar is set very high and each site has to be judged on its own merits, but if you can prove that the scheme is outstanding then that will help you to get planning permission,” advises Kay. Since its creation in April 2007, Home Revolution has provided advice on projects in locations as geographically diverse as Cumbria, Northamptonshire and Gloucestershire.

The team is led by Kay and David Merton at Fisher German, Ian Bevan of architects CadenzaVM and green technology expert Robin Hamilton.

They can provide advice on planning, architectural and technological issues.

The team conducts an initial appraisal and produces design sketches, before guiding the scheme through the planning process if the client desires.

Kay stresses that it is vital to take account of the individual settings and circumstances of potential projects.

For example, one site was situated on a former mill stream, so Home Revolution suggested it should generate hydroelectric power.

Each new project raises the bar for innovation, so the partners’ combined expertise and imagination is required to ensure that every new scheme uses the latest advice and technologies.

Kay believes that there is a future for sustainable homes in the countryside.

She says: “It’s a myth that living in a rural area is inherently unsustainable.

Isn’t the re-use of a building or green technology just as important as being able to jump on a bus?”

To find out more about these ecofriendly projects, call Kay Davies on 01530 410824, or Yan Gittins on 01905 459422, visit www.fishergerman.co.uk or www.home-revolution.com

Case study: The Dumble Four years ago Robin Hamilton was using farm buildings on his land in the Derbyshire Dales to manufacture environmentally-friendly products and he asked Kay Davies to ensure he had proper planning permission. While she was there he introduced her to a more ambitious scheme.

Overlooking the beautiful Dove Valley was a disused quarry, known as The Dumble. Robin planned to build a revolutionary, high-tech, eco-friendly home there and asked Kay to help him secure planning permission for this too. Ian Bevan was engaged as architect and Kay and her colleagues began negotiations with the local authority. The head of planning at Derbyshire Dales District Council visited the site and quickly became an enthusiast for the scheme.

Set into the ground to minimise impact on the landscape, The Dumble’s revolutionary design allows it to revolve to catch and store wind and solar energy. This makes it energy self-sufficient and allows it to export power to the National Grid.

The complex process of constructing the house is The Dumble’s underway and is scheduled innovative design for completion in 2010.

Fisher GERMAN Magazine 21

feature | utilities

feature | farm contracting

Pitfalls and ponds

2. Flexible rents and profit shares

sharing the pain and gain

Fisher German’s Andrew Bridge examines how to find and plan for the perfect utilities route

David Kinnersley, farm business consultant at Fisher German, explores the issues surrounding returns from contracting

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hen it comes to route planning for utilities, there is normally a starting point and a desired destination.

However, finding a suitable route that links the two can often test the most experienced engineer or land agent.

Historically a straight-line approach would be adopted, allowing for minor deviations predominantly based on construction or engineering restrictions. Over the years this has altered, with a higher emphasis now placed on planning and environmental considerations.

Although every scheme that Fisher German’s Pipeline and Utilities team is involved with differs,

depending upon the client, the nature of the apparatus concerned, and the legislation that the team is working under, there are certain issues that remain constant.

A desk-top study will highlight planning designations and environmental and archaeological considerations, as well as major infrastructure and other statutory restrictions that may impact on the preferred route. A site visit will then provide clarity, although the finalised route will be determined by involving numerous bodies such as the Environment Agency, the Highways Agency, Natural England, the local authority, local parish councils and local residents groups.

Planning for utilities?

Fisher German can help With more than 30 years’ experience in the utilities sector, Fisher German has considerable experience associated with route planning for all major utilities throughout the UK. Its dedicated and talented team offers specialist services in pipeline consultancy and expert advice in electricity and telecommunications cables, wind farms, canals and waterways, and in the innovative renewable energies market.

For more information on utilities please contact Andrew Bridge on 01530 410828 or visit www.fishergerman.co.uk

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Other questions arise over whether to construct in the highway or within private land holdings, each having their own distinct advantages and disadvantages.

As roads become more congested and the legislation governing working in the highway becomes more onerous, the adjoining farmland can sometimes be seen as the easy option.

However, the grass is not always greener on the other side, when further investigation can throw up unexpected finds such as a pond with great crested newts, a badger’s sett, protected hedgerows, a stream housing water voles or unexploded ordnance – the list goes on.

Planning and allowing sufficient time to fully investigate the potential stumbling blocks along the way is therefore crucial. After all, the importance of finding the right route can make the difference between the success and failure of a scheme, hitting or exceeding budget, meeting deadlines, and ultimately, the entire project programme. l

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ever has it been more difficult to negotiate rents or contract farming agreement terms than now. The immense turmoil in global markets in all sectors – commodity grains, dairy and meat products, oil and gas prices, fertiliser and spray prices, finance and exchange rates – has turned agricultural profitability on its head and back again in scarcely 18 months.

As global markets open up and economies become wealthier, supply and demand move in and out of balance, with prices following at an alarming rate.

Winter wheat prices 12 months ago were £80 per ton, rose to £180 and are now turning back towards £80 per ton. There has also been a 16 per cent drop in the value of sterling against the euro, which has given a hike to the 2008 Single Farm Payment.

Meanwhile the Anglia Farmers Ltd Aginflation figures indicate a weighted inflation rate of 35.53 per cent between September 2007 and August 2008.

Within that category, fertiliser has increased by 156 per cent, seed by 25 per cent and fuel by 58 per cent.

This volatility means that reaching a realistic return for both parties is difficult. Contractors and tenants are concerned about the rising costs of inputs and falling commodity prices.

Landlords and landowners want to see improvement in returns following a long

An increasingly popular option is to structure agreements on farm business tenancies or contracting arrangements to help flatten the increasingly extreme ranges of pain and gain that agricultural businesses are experiencing.

Farm business tenancies A basic rent with a bonus to the landlord, pegged to agreed commodity prices and trigger dates, is a way of spreading the risk between parties. For landlords willing to take more risk there is always the option of pegging rents directly to a commodity price on a set date.

However structured, it is important that the outcome can be easily calculated and verified by both parties to avoid arguments later.

Contracting farm agreements period of static rents and returns from contracting agreements.

While the short-term position is becoming increasingly difficult to forecast, both parties need to consider the risk and rewards they take, and how they might manage these for their mutual benefit. Two aspects are:

1. Better price risk management Improving risk management of sales and purchases helps to iron out the high or low of the market on the day. Selling a proportion of grain using a combination of sales pools and forward sales to lock into prices that will cover rents or contractors’ costs is one way of managing this risk. While it may not hit the highs, it will avoid missing the market. How many farmers regretted selling early last year and not selling earlier this year, having taken the gamble that prices would remain high?

Also becoming common are supply contracts that offer less volatile pricing structures in return for regular production of commodities such as milling wheat and beef.

Managing purchase price risk can be more difficult but forward planning of cropping, selection and purchase of seeds, fertiliser and sprays, where possible, gives time to find the right price. Purchasing through buying groups is also an effective way of mitigating input price risk.

For those in contracting agreements there is scope for a range of options.

Multi tiers of divisible surplus shares enable both parties to share in exceptional years, without disadvantaging contractors in poorer times. Concepts such as fuel price multipliers on contracting charges can also spread some of the burden between contractor and landowner in an equitable way. With careful thought about terms and business planning, both parties may cushion themselves against these volatile times. l

Farm consultancy Fisher German has a dedicated team of farm consultants, whose services include: • Day-to-day management and financial monitoring • Subsidy and grant schemes • Farm business appraisals and reviews • Farm diversification, conservation, environmental and organic conversion schemes • Contract and share farming Call Richard Sanders, David Gibb or James Goodson on 01858 410200 or David Kinnersley on 01295 226294 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 23

feature | compact estates

peace

of mind

Fisher German’s expertise in running compact estates means one less thing to worry about in these uncertain economic times

From housekeeping to land management, Fisher German will keep your estate running whether you’re there or not

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ith huge recent upheavals in the global financial markets, many businesspeople will have more need than ever before for the oasis of calm that a country retreat can provide.

Unfortunately they will probably have even less time and patience for the stressful process of managing a compact rural estate.

Fisher German can take the hassle out of country house ownership and guarantees that clients have time to enjoy a little relaxation by providing a comprehensive management service.

“We provide a single point of contact and ensure that when they come home on a Friday evening, the housekeeper will still be there, no tiles will be falling off the roof and there won’t be cows all over the garden,” says Yan Gittins of Fisher German.

“Peace of mind for the owner is very important – particularly in light of the turmoil that the world is going through,” he adds.

Country homeowners who are also busy city people may find running their weekend retreat an unacceptable drain on precious family time. Some estates suffer from runaway costs and owners often miss opportunities for increased income or other benefits in kind. For a new purchaser the prospect of running a large house in the countryside 24 Fisher GERMAN Magazine

– often with outbuildings, gardens and agricultural land attached – can often be daunting.

For the past 175 years Fisher German has developed an unrivalled expertise in the management of large rural estates. However, the firm is also adept at maintaining more modestlysized country houses and can offer tailor-made packages adapted to each individual client’s needs.

Fisher German can recruit staff such as gardeners, cleaners and handymen, and can also manage the staff payroll.

In some instances the firm has taken over the responsibility for personnel management on behalf of a single client with a number of different houses in the city and the country.

The firm can look after tenure issues, find tenants for lodges or cottages and organise grazing and farmers who want to work agricultural land. It can also manage maintenance, identifying areas that need work before securing

contractors and ensuring they have site access, together with budgeting and cost management services.

Insurance valuations and renewals can also be carried out by Fisher German on behalf of the client, and the firm can even manage all domestic outgoings, ensuring that owners are not greeted by a pile of unpaid bills each time they open the front door. It can also advise on whether charges are reasonable: “Businesspeople want to know they are getting a good – or at least a fair – deal,” observes Yan. By supplying a comprehensive package of services that always takes into account the needs of the owner, Fisher German can ensure that a house in the country is always a pleasure and never a burden.

“Take the stress out of estate and property management with professional help such as Fisher German’s and you can enjoy all that your countryside retreat has to offer,” says Yan.

How Fisher German helps two clients manage their estates The City high-flyers A couple in their 50s working in London wanted a country house to serve as a weekend retreat for the next few years and to become a more permanent home after their eventual retirement.

They bought a house in Worcestershire with a lodge, eight acres of gardens and a further 90 acres of countryside attached to it. Making the property comfortable and putting the surrounding land in order was a considerable task, one that they felt would be too much in addition to their already busy working lives, so they retained Fisher German to manage the estate for them.

Yan began by interviewing applicants to become a caretaker couple, who would live in the lodge, with the husband set to perform odd jobs around the property while the wife ran the house. The owners’ two children like

to ride, so the wife would also look after two horses, for which Yan arranged stabling, a paddock and water troughs. He also works closely with a landscape gardener on a redesign of the grounds, and has since employed a fulltime gardener.

Fisher German is also overseeing the management of the estate’s agricultural land. Some of the farmland is home to interesting wildlife and the firm will help the owners to enhance habitats. In addition it will make sure that the land is properly grazed and negotiate contracts to plough and reseed, as well as managing woodland on the estate.

The international jetsetters Another of Yan’s clients is a couple in their 30s who are international businesspeople. They own two other homes and spend little time – perhaps only five weekends a year – at their small estate in Gloucestershire. For

them it is a quiet weekend bolt-hole or a venue for occasional social gatherings, so they want the house efficiently maintained and managed on an ongoing basis with a minimum of fuss.

Fisher German ensures that the house is always maintained, and employs a gardener and an estate foreman. The firm also deals with all of the estate’s expenses on behalf of the owners.

Though the clients could be on the other side of the world, Yan is situated just a few miles away. He can be on hand quickly to deal with any problems that might arise and even to ensure that little details – like whether the gardener has drained the swimming pool or serviced the lawnmower – are taken care of; providing a turnkey service. l For further information contact Yan Gittins on 01905 453275 or go to www.fishergerman.co.uk

Fisher GERMAN Magazine 25

feature | planning

planning to win

Landowners who act now to secure planning consent for residential sites could cash in when the market recovers

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he credit crunch has hit the housing market hard, but in the long term demand for new homes is likely to be stronger than ever. The Government is still keen to see three million new houses built in the UK over the next 10 years, and while the downturn has limited the supply of new housing, the number of buyers wanting new homes is likely to increase swiftly when credit conditions ease and improve.

“With developers building less at the moment, in two or three years time there will be fewer houses available and more demand. Landowners with development land ready will have the edge when things pick up,” says Fisher German managing partner Andrew Jackson.

Fisher German’s planning and development team has a wealth of experience in advising clients on how to extract the greatest value from land with potential for commercial and residential development. It can also take over the traditional role of the developer in getting land allocated and securing planning consent before obtaining the best possible price on the open market.

In the past many landowners have relied on residential developers to manage the frequently long and difficult process of obtaining planning permission to build houses on their surplus land.

Agreements between landowner and developer have usually included the option for the latter to purchase the site after consent has been granted.

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However, in return for its assistance, the developer usually expects a 10 to 30 per cent discount on the open market sale price. Furthermore, the developer usually calculates what the market value should be on the basis of its own assessment of what can be built on the site, and it can be difficult for landowners to successfully argue that the developer’s plans would not create the highest final value.

An alternative route for landowners is to adopt a planning promotion agreement with a developer. This is similar to an option to purchase, but some or all of the land is sold on the open market, while the developer can buy part of the land or claim a fee.

Although this arrangement gives landowners a better chance of extracting the best value, many are still reluctant to work with developers. In some cases developers have been known to enter into option or planning promotion arrangements simply to make sure that a site is not developed if it would compete with another project nearby.

And because of the credit crunch there are now fewer developers willing to take on new sites as they retrench in the face of a difficult market.

An attractive third option is for Fisher German to stand in the place of a developer, providing a trustworthy and efficient route for securing planning permission. Without being tied to a developer, the landlord also maximises the chances of getting the best open

Planning and development Fisher German has a multidisciplinary team of planning and development specialists able to deal with all aspects of land and property, including development, acquisitions, sales, planning and promotion. The team advises landowners, developers, public bodies and major corporations on all types of planning matters to ensure that the use and value of property is optimised.

“Clients know our people, know our track record and know they can trust us”

For more information contact the head of Fisher German’s planning department, Kay Davies on 01530 410824 or visit www.fishergerman.co.uk

Andrew Jackon, Fisher German

market price for development land – often an important consideration for the trustees of large estates.

For more than five years the planning and development team has been taking sites – from half an acre to 100 acres – through the strategic allocation process and obtaining planning consent before selling them to the highest bidder. It does this on a nowin-no-fee basis, taking a cut of around six to 10 per cent of the final sale price.

Thanks to Fisher German’s experience and extensive network in the Midlands it can identify opportunities that others cannot, and its working relationships with local planners are often stronger than those established by developers. The firm also guarantees to not take on the stewardship of competing sites. Says Andrew: “Clients know our people, know our track record and know they can trust us to secure the best deal.” l

Case study: Station Road, Melbourne, Derbyshire In spring 2009 work will begin to construct 130 houses on Station Road in the attractive village of Melbourne in South Derbyshire.

The family trust that sold the site this summer netted a sum well in excess of the guide price of £10million.

“Station Road shows that we can identify opportunities that other people can’t, then get planning permission and the best possible

price,” says Fisher German managing partner Andrew Jackson.

Fisher German first detected the opportunity almost eight years ago when it was noticed that the strategic plan for South Derbyshire identified the need for new housing, but not sufficient sites on which to build. The firm began to check with clients and contacts to see if suitable land could be found and discovered a 12-acre site on the edge of Melbourne.

Station Road was allocated in the local plan for industrial or office development, but clearly had more potential as a residential location. Under national planning guidance, employment sites that are not taken up can be treated in the same way as previously developed land and stand a stronger chance of securing permission for a residential scheme.

Fisher German marketed the site for employment use for three years to prove that there was no demand and then began to promote the site for housing through local and county strategic plans. The proposal was recommended by a planning inspector, but due to a legal challenge the local plan could not be adopted by the local authority, South

Derbyshire District Council. However, Fisher German was successful in persuading local planners to consider the scheme on the basis of the inspector’s report.

Fisher German carried out site surveys and conducted negotiations with the users and owners of sites surrounding Station Road. One difficulty was a neighbouring scrapyard, the noise from which would have considerably reduced the scale of development on the site, so the firm designed and negotiated an agreement to allow the construction of an acoustic building to create a sound buffer.

At the end of 2006 Fisher German submitted a planning application, which was approved by the council’s planning committee the following spring. The sale of the site to a residential developer was concluded in July 2008, just before the market for residential land took a turn for the worse.

Guiding a development site through the planning process is a task that frequently takes a great deal of time and effort.

However, with patience and skilled advice it is one that Fisher German can bring to a profitable conclusion.

Fisher GERMAN Magazine 27

feature | mediation and arbitration

dispute resolution

David Legh explores arbitration and mediation and why these can be better than going to court

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t is inevitable that a surveyor will be involved in dispute resolution at fairly regular intervals. A great majority will be resolved by agreement long before the matter reaches court.

Here we explore two forms of alternative dispute resolution in regular use where the decision or award is nevertheless held to be binding.

Arbitration

This is commonly used for the resolution of commercial disputes, typically where a contract or tenancy provides for variation of terms, such as rent, or where interpretation of covenants by either party is in dispute.

The law on arbitration had previously been piecemeal and the guiding legislation had become a minefield, with different laws applying to different types of lease, for example farm tenancies and business leases.

The process has, however, now been simplified and the conduct of all property arbitrations now falls under the Arbitration Act 1996. Unless the parties agree to an appointment privately, arbitrators are chosen from a panel held by the President of the Royal Institution of Chartered Surveyors (RICS) consisting of senior members of the profession who undergo regular training. The rules do provide some flexibility, but arbitrators normally sit alone, hearing the evidence from the parties and their expert witnesses either by written representation or in a quasi-judicial hearing, before making their award sometime later, usually following a site inspection.

The distinction between arbitrator and expert is important. Arbitrators can only base their award on the evidence produced and have no licence to bring their own technical expertise into play, except on interpretation of matters of law, or with the consent of the parties concerned.

28 Fisher GERMAN Magazine

Similarly the only challenge to an arbitrator’s award can be on a matter of law. It is therefore essential that expert witnesses prepare their statements very carefully and leave nothing relevant unstated. The rules provide for witnesses to be cross-examined.

The award will be made in writing, with reasons, if so requested.

It is normal for the costs to follow in proportion to the award and the arbitrator is often assisted in this by the deposit before the hearing of a settlement offer in order to gauge the relative success of either party.

Arbitrations to fix the level of rent were common in the 1970s and 1980s during that period of high inflation.

Farm rent arbitrations became very costly because of the requirement to produce budgetary evidence to determine the earning capacity of the holding. Careful thought had to be given to ensure that the costs of the arbitration were not out of proportion to the amount in dispute.

Many felt that by the 1990s the original intention of such arbitrations had been lost as they became more and more adversarial with the advent of expensive legal representation. The recent simplification of the process should lead to the restoration of more balance and moderation – and reduction in costs.

Mediation

Mediation is a method of settling disputes that would otherwise be heard in the County Court or even in the High Court. The courts are anxious to encourage parties in a dispute to interrupt the legal process in an effort to save cost and court time.

The difficult part is often to persuade the parties that mediation is a good idea. Our legal system is based on a combative approach where fault, blame or error are sought to be established, whereas a trained mediator

“Arbitrators can only base their award on the evidence produced” David Legh, Fisher German Chairman

will seek to find common ground between the parties. The mediator will often keep the parties apart while spending time with each to establish the precise areas of agreement and disagreement.

An important factor is confidentiality. A mediator will never disclose without permission what

was said to the second party while in discussion with the first party, thus building trust when the shuttling between the parties begins in earnest.

Examples of recent mediations with which Fisher German has been involved include an incident when an outgoing farm tenant removed and destroyed property belonging to the landlord, and another case where a farmer alleged very significant loss of farm output in consequence of the works of a utility company.

The advantage of these cases being settled by mediation was that the process was quicker, significantly less expensive, confidential, and ‘without prejudice’ in cases where agreement is not reached in mediation and the matter alternately reaches court. The latter is rare – mediation normally produces a result on the day, which is legally binding once signed by the parties involved.

Conclusion

In dispute resolution there is seldom an outright winner or loser. The right result has probably been achieved where both parties seem slightly disappointed at the award. The important thing to realise is that the legal process presents opportunities for settlement along the way and a divisive court hearing should be treated as a last resort. l

Arbitration or mediation can be better bets for dispute resolution

David Legh is chairman of Fisher German. He deals with a wide range of work including rural estate management, sales and lettings of rural and commercial property, valuations for bank, probate and IHT planning and expert witness reports.

Call 01785 273988 or find out more online from www.fishergerman.co.uk

Fisher GERMAN Magazine 29

Spotlight on services

about us Fisher German is a firm of chartered surveyors and specialist property consultants serving clients countrywide. The firm has nine offices throughout the UK, with almost 200 employees.

The team specialises in the sale, letting and management of rural properties, including country houses, estates and cottages, farms and land, barns, development sites and equestrian properties. Although Fisher German’s roots are in the rural property sector, the firm now offers a range of services in the residential and commercial sectors and beyond. The firm is also a leader in pipelines, utilities, telecommunications and renewable energy.

l Fisher German’s experts cover a wide range of services

30 Fisher GERMAN Magazine

The full range of services includes: ➔ A gricultural and development property sales ➔ Building consultancy ➔ Canals and waterways ➔ Commercial property advice ➔ Electricity and telecoms cables ➔ Equestrian property sales ➔ Farm consultancy ➔ Minerals ➔ Pipelines ➔ Planning and development ➔ Property sales by auction ➔ Renewable energy consultancy ➔ Residential property sales ➔ Rural estate business ➔ Sporting ➔ Telecommunications ➔ Utilities ➔ Valuations ➔ Wind farms

A complete range of services for all our clients’ needs

Over the past 25 years Fisher German has built a formidable reputation as one of the UK’s leading providers of pipeline-related management services.

However, the firm not only provides expert advice and information. Fisher German can also bring more practical skills to support its clients’ many businesses.

Fisher German employs a team of four managers and 20 technicians who maintain around 1,200km of pipeline on behalf of a client, a major oil company.

The operators prevent the pipes from rusting as well as maintaining all of the aboveground structures associated with them, such as fences and valve compounds.

“As well as managing all the different aspects of a company’s infrastructure, we offer practical, hands-on support and maintenance on behalf of our clients,” says Tam Bream, of Fisher German’s pipelines and utilities department. “We have the ability to turn our hand to anything and adapt to changing circumstances over time.”

The team offers a vast amount of knowledge in an extremely specialised field that is covered by a very specific and strict set of guidelines and permits.

These must be followed closely if incidents such as the Ath pipeline explosion, Buncefield oil terminal blast and Piper Alpha disaster are to be avoided.

Some of the team’s technicians have more than 20 years experience and most have been active in the field for at least five years. They are able to provide technical support throughout England and Wales to organisations such as utility, power, oil and gas companies, as well as highway authorities.

Field Operators Fisher German’s pipelines and utilities team offers a hands-on and expert service in a specialised field The team offers expertise in areas including:

Highways – Technicians are qualified to work on public roads and have detailed knowledge of the guidelines laid out in the New Road and Street Works Act 1991.

Location of underground services – The team has access to detailed information on the location of gas, water and oil pipelines and electricity cables. This helps to ensure that work will not disrupt existing services. It also provides and maintains marker posts.

Legal requirements – Field operators are

“Some of the team’s technicians have more than 20 years experience” thoroughly familiar with pipeline safety regulations and legislation governing water and electricity infrastructure.

Supervision of works – The team has extensive experience of monitoring works around pipelines by third parties, such as local authorities, developers and householders.

Safety – There is a high risk

element in works carried out around underground services, so safety is a key area. Technicians are well versed in safe working procedures relating to laying pipelines and cables, demolition, housing development, road building and unexploded ordnance.

Field operators

Tam Bream Call 01530 410809 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 31

“Including land within the capital account on the balance sheet can save tax”

Spotlight on services

Henry Sale, Fisher German managing partner

Inheritance Tax Henry Sale discusses how best to deal with Inheritance Tax issues in order to keep your estate intact

“FGS offers tailor-made sporting packages across the country”

Sporting Richard Hutcheon gives an update on Fisher German’s sporting agency’s growth and ongoing activities Growing success

Since the merger of Westcountry Sporting Worldwide Ltd (WSW Ltd) with Fisher German in early 2007 to create Fisher German Sporting (FGS), our redeveloped sporting agency continues to go from strength to strength. Despite the credit crunch, bookings and interest are well up on previous years, with some clients already looking to confirm dates on our retained estates for the 2009/2010 season.

Estate management

FGS manages some of the most renowned estates and therefore lowland shoots, rivers, moors and hills all over the UK. With exclusive access to these estates being unavailable through any other agents, FGS continues to expand its retained sporting clients by offering tailor-made packages across the country.

Managed estates include Glenmuick in Aberdeenshire,

32 Fisher GERMAN Magazine

Tregoyd in Powys, Osmaston in Derbyshire, Cottesbrooke in Northamptonshire, Dumbleton in Gloucestershire and Barkby in Leicestershire.

In addition, the existing managed shoots brought to the firm with the WSW Ltd merger continue to flourish despite the current uncertain economic climate.

Tatton Estate Shoot

During the summer of 2008, Fisher German Sporting was also employed to find a suitable tenant for the renowned Tatton Estate Shoot, comprising more than 3,500 acres of exclusive sporting rights, together with a keeper’s house and outbuildings in the heart of Cheshire.

Responses from both retained clients and a series of national adverts in The Field and The Sporting Gazette magazines were fantastic, resulting in over 60 enquiries with almost half of those wishing to view. At the time of writing a second wave

of interviews were being held to secure an appropriate lessee.

Weekends in Tresco

Another exciting development with FGS is exclusive weekend sporting breaks on Tresco in the Isles of Scilly. Billed as the western-most shoot in the British Isles, this is designed to appeal to the whole family, and includes Fisher German flights, three nights’ fullSporting can tailor board accommodation, a both bespoke day’s driven shooting and and affordable an open bar. Only the wine packages is charged separately. With exclusive use of the new l Driven and walked-up Flying Boat Club and its spa, pheasant, partridge and and guided tours around the grouse shooting island’s famous gardens by l Salmon and sea trout fishing its curator, this is a fantastic l Lowland and upland opportunity for the whole stalking family. Dates are sold out l Shoot design, management for the 2008/9 season, but and consultancy bookings for limited Sporting weekends Richard Hutcheon are already Telephone 01905 459427 or go to underway for www.fishergerman.co.uk next year.

As a firm of rural practice chartered surveyors, Fisher German is requested to both manage land for clients and value it for Inheritance Tax (IHT) purposes. In many cases it is tasked with negotiating with the District Valuer as to the value and facts of a particular case.

Here are some of the issues Fisher German deals with on behalf of its clients and how, with good management and presentation of facts, the client’s position can be improved by the firm. lA gricultural value Much of the value of agricultural land is fuelled by the tax advantages that agricultural land attracts,

and in particular Agricultural Property Relief (APR). This is backed up by further Revenue Extra Statutory Concessions and case law.

However, recently HM Revenue & Customs (HMRC) has been seeking to apportion the value of a piece of land between the agricultural and non-agricultural values, for example, where there is development or hope value.

The effect of this can be overcome by presenting the land as a business asset, and therefore qualifying for Business Property Relief (BPR). This involves showing the land as an asset to the business in the accounts.

A simple measure of including the land within the capital account on the

balance sheet can save significant amounts of tax. l Value of a

farmhouse

The well-publicised Antrobus case set out the court ruling as to what constitutes a farmhouse. During this case the judge made the comment: “A farmhouse is like an elephant, you know one when you see one.” However, the interesting point arrives in what is known as Antrobus (2), where the Lands Tribunal sought to determine the agricultural value of a farmhouse. Based upon this, HMRC is seeking to apply a blanket 30 per cent discount from market value to reflect agricultural use of a property, and in essence the perpetual agricultural tie. Fisher German has successfully resisted this on a number of occasions, as each case needs to be looked at on its own merits. l Farmer v HMRC

(1999)

“We advise owners to review their asset management ”

The application of this case can ensure that sundry let cottages and let farm buildings can attract BPR providing the business is taken ‘in the round’. Therefore the careful presentation of accounts and management of a business can substantially improve the IHT position.

There are a number of tests to be applied, but in many cases we do see that forward planning could have saved further tax.

l McCall v HMRC

(2008)

This case is discussed in News & Views on page seven, and although this applied to a Northern Irish property, the principles can be applied across the UK. The lesson from this case is that where land is managed under a licence agreement and there is a value in excess of agriculture, then it must be shown that the owner is taking an active management in the land. This will require careful drafting of the grazing agreements and actual management reflected in the accounts. l Ragley Hall This is an important case for those owners with properties open to the public. It was agreed in this case that only 22 per cent of a mansion house was used for private apartments, with the rest being open to the public.

Based on the facts of this case, BPR was available on the entire property because all of the exterior was used for business purposes, and therefore it was treated as a single asset eligible for BPR. Fisher German advises owners to carefully review the management of their assets where they are in an IHT-sensitive situation.

Careful management and presentation of facts can greatly improve the chances of obtaining both APR and BPR. This should be backed up by a wellpresented and accurate valuation so that HMRC clearly understands the facts and is not tempted to jump to conclusions.

Inheritance Tax

Henry Sale Telephone 01858 411217 or go online to www.fishergerman.co.uk

Fisher GERMAN Magazine 33

“This service could make a significant contribution to your bottom line”

Spotlight on services

Fisher German Commercial Property department

Commercial property

Minerals

Charles Meynell provides an insight into the firm’s minerals expertise

From acquisitions to valuations, Fisher German can help with all areas of commercial property

Fisher German approaches property issues from a business perspective, incorporating strategic advice on how to manage and maximise the owner’s assets.

leisure properties. A full marketing advice service is also on offer for the sale of land. If you own land and wish to know its value, it can advise on its development potential.

Strategic property advice

Acquisitions

Is your property portfolio being managed efficiently?

Is it cost effective? Following a review and inspection of property holdings, clients are provided with a property audit to: l Identify and manage risks l Identify areas for cost saving l Advise on legal responsibilities with regard to disability, discrimination, heath and safety etc.

All the available options are then assessed to develop and successfully implement a tailor-made property strategy.

Sales

The team has a wealth of experience in agency disposals for property and land in all sectors – including offices, retail units, industrial premises, residential and

34 Fisher GERMAN Magazine

If you are seeking land or property Fisher German can assist by sourcing a property to meet your specific requirements.

dealing with many diverse property issues, including financial planning, service charge management, repairs, rent collection, project management, letting, sales, acquisitions, planning, new builds, policy advice, coordinating management and company meetings.

Service charge management

The team is experienced in marketing all types of property for lease. Clients include occupiers, pension funds, investment companies, developers, businesses and private individuals.

Service charges enable costs of common services in properties to be shared between multiple occupiers whether in a commercial or residential development.

Fisher German offers a comprehensive service charge management package.

Property management

Rent reviews and lease renewals

Lettings

Fisher German manages a variety of commercial and residential properties including: l Rural estates l Commercial developments l Retirement developments l Residential leasehold properties.

The managerial role involves

Rating advice and appeals A free initial consultation can be provided to advise whether or not it is viable to consider an appeal against your rating assessment.

If you would like to know more, the team can provide information from the Royal Institution of Chartered Surveyors about your business rates. This also highlights the advantages of using a qualified and regulated professional.

Valuations

The team undertakes capital and rental valuations on a wide variety of properties. Its service also includes advising on development opportunities for vacant sites and the re-use of existing properties.

This service could make a significant contribution to your bottom line for years to come, and all initial consultations are free.

Fisher German has extensive experience in dealing with rent reviews and lease renewals on behalf of Commercial Property landlords and John Royle tenants for Telephone 01744 458841 or office, retail Simon Geary on 01565 757977 and industrial or visit www.fishergerman.co.uk properties.

At a time when local planning authorities are embarking upon preparation of local development frameworks for the surface development of land, landowners should not ignore what valuable assets may exist below.

Fisher German offers specialist advice in all aspects of mineral extraction and the subsequent waste management opportunities that arise.

What lurks beneath?

Fisher German is presently acting for a number of landowners in seeking to gain mineral allocations under emerging mineral development frameworks produced at county level.

The increased use of recycled materials and the current economic slowdown indicate that the demand for new mineral reserves may be declining. However, the promotion of minerals has a long lead-in and, like other forms of development, requires significant research into the environmental impacts of such a proposal and the after-use of the site following extraction.

Promotion and development

Development of new quarries upon greenfield sites is difficult, but short-term consents may be available, for example, as borrow pits in connection with major local infrastructure proposals.

The allocation of minerals as an extension to an existing

quarry is generally viewed favourably by a Mineral Planning Authority, due to the presence of screening and good access coupled with the use of existing plants, and can be important to provide ongoing employment in a rural area.

Minerals are generally promoted through option or contract arrangements with mineral operators, who will cover the substantial upfront promotion costs in return for paying either a lump sum to acquire the mineral rights or a royalty on minerals worked and sold.

Fisher German’s minerals service l The core aim is to

maximise revenue earning opportunities from minerals and landfill while maintaining the value of the property l Lease and option agreement negotiations l Detailed knowledge of the royalties and rents to be achieved l Ongoing management of the quarry/landfill operations l Management of the final restoration scheme l Experience and knowledge of the complicated tax regime in relation to minerals

Returns and after-use The returns can be significant. The royalties payable for sand and gravel extracted in the Midlands could amount to £50,000£60,000 per acre, while royalty rates in the south and south-east are considerably higher.

The after-use of the site can vary. In appropriate locations a waste royalty is payable on inert landfill to reinstate to terra firma.

In other areas restoration is water-based, which can provide opportunities for leisure, recreation or nature conservation, supported by possible commercial use of the former plant site.

Management

Throughout the process the landowner will need to consider the ongoing management of the surface and to maintain flexible arrangements that can

“We offer specialist advice in all aspects of mineral extraction” accommodate such things as advanced tree planting and access for survey.

This needs careful consideration to ensure ongoing compliance with the Single Farm Payment and if let, appropriate clauses in farm business tenancy agreements.

Fisher German can guide landowners

through the entire process, offering a full management service for monitoring and auditing mineral extraction and landfill operations so they are assured that this asset is properly managed and operated to maximum potential. l Minerals

Charles Meynell Telephone 01785 273999 or Christopher Hicks on 01858 411202 or visit www.fishergerman.co.uk

Fisher GERMAN Magazine 35

Ashby de la Zouch 01530 412821 Banbury 01295 271555 Knutsford 01565 757970 Market Harborough 01858 410200 Newark 01949 851815 Southampton 02380 883150 St Helens 01744 451145 Stafford 01785 220044 Worcester 01905 453275 Freephone 0800 1075522

www.fishergerman.co.uk