property 23 Avoiding property pitfalls


Property has long been heralded as a reliable source of income, especially here in the Solent, but as Craig Petrie, head of dispute resolution at Eric Robinson Solicitors, explains, potential investors need to enter the market with their eyes wide open


I have heard it said by many landlord clients: “Property is a great investment, but the business is tenants“ and, as in all businesses, there can be ups and downs. If a residential tenant breaches their agreement, for example, by failing to pay their rent or damaging the property, or if an owner simply requires possession, my specialist team steps in to assist both landlords and letting agents to serve appropriate notices and, if needed, issue and conduct claims in order to obtain a court order for possession, and all for clear, fixed fees.


Another popular method of property investment is the purchase of freeholds, most commonly a block of flats, where the proprietor hires a property management company to collect ground rent, an annual service charge paid by tenants to contribute to the maintenance of the building, and take care of the building.


We act when tenants fail to pay, issuing initial letters of claim and sometimes the issue and conduct of court proceedings. The process can be straightforward as tenants rarely have any


Craig Petrie (left) with the dispute resolution team


defence – their lease will contain an express obligation to pay ground rent and service charges. It is therefore not unusual for default judgements to be obtained and I specialise in creating cost-effective solutions and bespoke services to individual client needs.


However, there is a new ‘fly in the ointment‘ for all the above scenarios. Despite lessons that should have been learned from the economic recession,


Grosvenor announces retail tenants for arts complex


As the new arts complex in Southampton‘s Cultural Quarter sheds its scaffolding, Grosvenor Britain & Ireland has confirmed three additional tenants for the scheme‘s retail element. The three brands: The Stable, Faucet Inn and Nandos join previously announced tenant Tapas Barcelona.


Simon Armstrong, project director, said four out of seven commercial units have now been let, with the remainder under offer. He added: “We‘re pleased to have secured a varied mix of operators that complement each other so well. They‘re a perfect fit for our vision of delivering a varied and compelling restaurant offering in a location where people will want to live, work and visit.“


The Stable, founded in an old stable block in Dorset, is a ‘cathedral‘ to cider and gourmet pizzas. It offers over 80 varieties of craft cider as well as freshly-made pizzas with toppings using local ingredients. The restaurants are unique in design, inspired by Dorset countryside pubs, with long wooden tables, candles and cosy fires.


Faucet Inn operates an eclectic collection of 22 pubs, bars and hotels nationally, including Tap Room and Cargo in Southampton. It is planning a 2,987 sq ft bar and restaurant in the arts complex that will trade under the name ‘Neighbourhood‘, a brand which is flourishing in London‘s East Village in the former Olympic


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JULY/AUGUST 2015 www.businessmag.co.uk


Park. It will offer a diverse selection of internationally-sourced craft beers, well-kept cask ales, premium wines and spirits and a mezzanine boasting views across East Park.


Nandos, the international peri peri chicken restaurant operator founded in South Africa, has 1,000 restaurants in 30 countries across the world. It currently operates from Southampton‘s West Quay and The Swan Centre in Eastleigh. For the new arts complex, Nandos is planning a 3,000 sq


ft family restaurant that will appeal to all sections of the local community.


In total there are seven restaurant/cafe units in the new arts complex and adjacent Guildhall Apartments, which comprise 38 apartments with views over the city.


The new arts complex will be run by Nuffield Theatre and will provide facilities for City Eye, the University of Southampton‘s John Hansard Gallery and a multi-purpose performing arts centre.


the encouragement for people to get on the property ladder. Help to buy, shared ownership and home builders‘ schemes are great initiatives to get the market moving, but there will always be those that extend themselves beyond what they can financially cope with.


Some people take on a flat without knowledge or understanding of a service charge which is too much for them to pay. Others take on financial commitments that, should their life change in the slightest way, they can no longer meet. Though the schemes do their best to ensure people are in a position to afford what they offer, there will always be those that either intentionally or through lack of understanding manage to qualify when they shouldn‘t.


Buyers of property need to be aware of all possible scenarios relating to their investment and we work with individuals and agents to provide knowledge, experience and processes to overcome any problem effectively and efficiently as soon as they arise.


Details: 023-8022-6891 craig.petrie@ericrobinson.co.uk www.ericrobinson.co.uk


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