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2025 in review: Under construction - Tax investigations
Krishna Mahajan
It is not uncommon to find old buildings in Central London relying on a secondary means of escape over adjoining property, based on an old Deed providing for a right of escape (sometimes mutual). It can be very difficult, especially post Grenfell, to make an old building compliant with a single staircase means of escape, if the secondary means of escape ceases for any reason. Firstly, it may not be possible (for e.g. the single staircase may not have sufficient capacity), secondly, the cost may be prohibitive and/or thirdly it may restrict the potential uses of the building in the future.
In my previous blog I provided an overview of the history of health and safety legislation, and analysed the Hackitt report’s recommendation that the CDM Regulations should be extended to HRRBs. I concluded by looking at how the proposals may impact clients (as defined by the CDM Regulations). I continue the theme in this blog by reviewing the potential implications on the other CDM duty holders – Designers, Contractors, Principal Designers and Principal Contractors.
In December 2017, the government announced that it would ban the sale of houses on a leasehold basis and prohibit developers from selling leases of flats or houses that contain an obligation to pay ground rent. The government is also committed to making it cheaper and easier for existing leaseholders to buy-out their freehold. The Law Commission is considering three projects - read more
Imagine this scenario. You own a site which is ripe for development in a few years. There are a number of tenants who still have leases which don’t expire for between two to three years, which fits in with your development timetable. There was one vacant floor last year but you agreed to let that to a new small business tenant on a one year lease and since that tenant said they may want to stay longer, you agreed that they could have a right in their lease to renew for another year. You agreed a low rent as it was such a short term and saved you the business rates. You didn’t want to bother with solicitors so your agent just issued your standard short term lease and after a couple of amendments from the tenant, this was completed in a couple of days.
Our blog series began with a review of Dame Judith Hackitt’s report and our examination of whether an outright ban on combustible materials is required. In this blog we analyse the primary purpose of the Construction (Design and Management) Regulations (‘CDM Regulations’), how the CDM Regulations apply to key persons in a construction project and how the Report suggests the construction industry apply the regulations to higher risk residential buildings (HRRBs).
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