Is your business ready for the new business rates assessment?

Randell_blue_logoOverview
Whether your business operates from a retail premise, industrial unit or an office block you are eligible to pay Business Rates. In essence Council Tax for commercial premises. The Central Government annually charge commercial properties across England and Wales with property tax. This is known as the Business Rate, it is collected by the local council.

Calculations
There is a simple sum of working out your Business Rates. The liability for each owner is calculated by multiplying the rateable value (RV) for the property by the national uniform business rate (UBR) which will be set at (£0.48 for 2017/18). The rateable value is assessed by the Valuation Office Agency (a part of HM Revenue and Tax). After a long gap of 7 years, the next national re-assessment will take effect from 1st April 2017.

For the 2017 revaluation, the rateable value for each property should be roughly equal to its annual rental value on 1st April 2015 and calculated by reference to its physical condition on 1st April 2017

Effects on you as a business.
Currently the rateable values are assessed under the 2010 scheme which was by reference to the property on 1st April 2008. The 2017 Scheme scheduled will review the rental vales on the properties as of 1st April 2015.

There have been significant movements in rental value over this 7 year period. In 2008 the Country was entering a period of recession. The commercial property market was commencing its downward cycle. However all that had changed by April 2015. Economic conditions had improved: the property market was buoyant and rising.

The draft 2017 Rating List published by the Valuation Office Agency on 30th September 2016 indicates a significant increase in the rateable values of commercial property.

The future.
The Government will publish its scheme for transitional relief (intended to provide a cushioning affect for those taxpayers suffering a significant change in tax liability) in the late Autumn and will confirm final rateable values shortly before the new Scheme commences on 1st April 2017. No appeals will be allowed before then.

Who should I contact for advice?
Randell Commercial work closely with expert consultants in order to minimise our clients Business Rates liability. Please contact one of our surveyors should you require any assistance.

office@randellcommercial.uk 
020 7135 2033

Latest Acquisition – Zing Zing for Kensal Rise

zz (1)-p1b7q6hta41vul1bnueuo1ujj1vtq Revolutionary Chinese takeaway brand Zing Zing has announced the opening of a new store in Kensal Rise due to open February 2017, bringing with it 20 new jobs to the local area.

Zing Zing is looking to change the face of Chinese take-out by offering traditional Chinese flavours with a clean and modern twist. Their food is cooked wok fresh to order with no added chemicals and delivered in superfast time. It is their aim to become the best Chinese takeout in the world.

Zing Zing are very excited about the opening of store No. 3, Josh Magidson, company founder said, “We’re so lucky to have found such a great location for our third Zing Zing. Kensal Rise is just outside of our Kentish Town delivery radius meaning that we can now meet customer demand in the area, and continue to widen our delivery area. We always use the community to help develop our products which is why we have decided to invite local residents to become taste testers. The successful crowd funding campaign earlier in the year has allowed Zing Zing to grow quickly. We plan to follow the launch of Kensal Rise with a fourth new opening later in 2017. Our objective of 30 Zing Zing’s across London by 2020 is more real than ever.”

Randell Commercial Ltd (RCL) acted on behalf of Zing Zing, to secure the off-market property, by way of assignment. Billy Wright of RCL commented “We identified this area as the perfect location for the third takeaway. With ideal demographics and the natural move west from Kentish Town, securing the 600 sqft A5 property off market was very pleasing. There are great neighbourhoods within close proximity, for Zing Zing to deliver their amazing Chinese food.”

Zing Zing have a further deal pending in Elephant & Castle with outlets five and six required in 2017 having a focus on South West and East London.

*To find our more about the new store or become a taste tester visit www.ZZKR.co.uk for any press enquiries, please contact Stacey: stacey@zing-zing.co.uk

If you have any A5 properties, or commercial space suitable for a change to this use, and looking for suitable high end takeaway operators, please talk to us. bw@randellcommercial.uk 020 7135 2033.

Summer Acquisitions

Randell Commercial have battled through the Brexit blues and the usual holiday lull to complete the following acquisitions this summer:

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Needing more office space in South London, our clients are now in their new 2,000 sqft home in Richmond Upon Thames.

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A3 space anywhere in the capital is sought after, acquiring such without premium in a prime location by Tulse Hill station is exactly what our client required.

 

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Needing new office space, our clients are due to move into grade A accommodation in the sought after Clapham Old Town area. 

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An exciting and modern dance company, with  difficult D2 requirement are fully open and up and running in a purpose built dance studio by Oval Underground Station. 

 

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A further new store acquired in Fulham Broadway for this exciting e-cigarette brand, one of, if not the best company in this growing sector.

 

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An Italian family business looking for their first Cafe/Pizzeria in London, are now fitting out their new premises on Wandsworth High Street.

If your current business or new venture need increased, decreased or their first space, whether it be office, industrial, restaurant, retail or any type of commercial property, please don’t hesitate to give us a call. Let us do the hard work so you can continue concentrating on your core business.

 

Looking to Acquire Commercial Space

Randell Commercial work with individuals, start up and local businesses as well as national occupiers advising on all types of commercial property across Central and South West London.

As a tenant with an expanding or new need for space we enable you to concentrate on your core business as we do the hard yards and scour the market on your behalf. With a proactive approach, combined with large databases and an extensive knowledge enable us to source properties off market. We then secure and negotiate the best terms for our clients.

In such a competitive world being represented by us can help you gain the edge and obtain the property that suites your needs.

At Randell Commercial we genuinely have an interest in property and are happy to discuss any commercial property strategy, intentions or deals. Please give us a call.

       Here are our Recent Acquisitions

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5th store in Central London, off market transaction, from viewing to opening inside one month!

 

 

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3rd London store, first store south of the river, premises secured off market and attractive terms agreed. 

 

 

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2nd London store in Clapham Junction, flexible terms negotiated. 

 

A3 Retail Premises Premiums & Planning explained in conjunction with food sales

The definition of A3 Restaurants and Cafes is; “For the sale of food and drink for consumption on the premises – restaurants, snack bars and cafes.”
In today’s commercial market, A3 rental market is more about premiums, with premises being advertised and changing hands at eye watering premiums level. Premiums have historically been recompense for the cost of the fit out, equipment and any good will. Premiums are negotiable and should always be challenged by potential tenants. Today the premiums are also attributed to space, simply because it has A3 use and council planners are endeavouring to retain the A1 Retail nature of shopping areas, which can be off-putting for those in the food industry.Good news – there is an alternative; food can be sold from A1 premises! This is only the case when the primary use of the premises is of a retail nature, ancillary use of food and drink service is permitted.   Primary cooking cannot take place on site but hot dishes can be prepared off site and held at temperature or reheated. This model has been adopted by Canteen, Eat, Hummus Brothers, Subway and Pret A Manger, with advantageous results for their business. The emphasis must not be ‘dinning in’, simply, takeaway with limited seating.
Where the line is drawn between A1 and A3 uses requires careful attention.  Local planners and their authorities are aware of this grey area. Care should be taken to avoid business risk by fluting planning law as there is continued overlap between, sandwich shops, takeaway and restaurants.
There is no reason why an A1 retail unit cannot be granted a premises licence. However some councils restrict licencing to only venues selling food under which such an application could contradict the A1 nature of the premises.
The benefits of A1 are that premises tend to transact without premium or at much lower levels benefiting a business’s cash flow also in most markets there is a greater availability of A1 unit than A3.
So consider if you can trade from A1 or if your business can be adjust so that this type of premises can be utilized and maximise the usage, and in turn, profits.