Rates on empty business premises came into force on April 1, 2008; owners having previously been granted relief on unoccupied properties by the 1988 Local Government and Finance Act.
Under that act empty industrial property was granted 100% relief while all other commercial property received 50% relief following an initial three months exemption. This is now a much talked about government policy in the current economic climate.
Although the new charge still allows relief for the first six months on industrial premises and three months for all other commercial property (it will not be available in relation to existing vacant buildings), the removal of relief thereafter has introduced a significant additional financial burden on property owners who have empty accommodation.
The Management at MJ Finnigan Limited would like to offer all property owners currently suffering from this tax an opportunity to make the most of what may be seen as a difficult situation.
What was previously a long-term investment is now a financial burden for developers and landlords who can expect significant cost increases for not using vacant commercial buildings.
Michael Finnigan, Managing Director of MJ Finnigan Limited says, ‘these rates are going to impact significantly on anyone leasing or owning an empty building. Few developers are going to let property stand empty.’
‘In many cases it will not be commercially viable to maintain the building. The introduction of rates will simply spur owners to speed up the demolition process….
Heavy rates are not the only incentive. Empty buildings quickly become targets for squatters, intruders and vandals. Strict health and safety legislation can be a headache to enforce and often require costly security measures.
Michael Finnigan says: ‘The new rates are forcing owners to focus and make decisions. This could mean early demolition of a site as a more profitable alternative to maintaining a building. A clear, level site is going to be of more interest to a potential developer than an empty building. From the owner’s point of view, he does not have to worry about building rates or security costs; security and health and safety is far less of an issue on levelled land.
By using our experienced expertise at MJ Finnigan Limited we can carry out your demolition works and maximize potential benefits as clients through our asset disposal and recycling processes while minimizing the costs of our demolition process. Overall the site owner will have gained a more profitable asset and offloaded the burden of a heavily-taxed, derelict building with all of the additional security, safety and insurance concerns.
