NEW RESIDENTIAL AGENCY DEPARTMENT FOR EDINBURGH 

We are delighted to announce a new residential agency department based at our flagship offices in George Street, Edinburgh, specializing in the sale and purchase of Edinburgh townhouses and apartments.

Heading up the residential office is Alasdair Mackenzie who returns to Scotland after 12 years of Estate agency experience in the fiercely competitive London market, where he set up and ran residential agency offices. Alasdair has always kept a close eye on the Edinburgh market and already has many eager purchasers who are keen to secure prime property.

Alasdair is dedicated to providing an outstanding personal service that is second to none. This pledge combined with the strength of one of Scotland’s leading Estate Agents make CKD Galbraith the obvious choice to sell your property.

For a free property appraisal or to join our mailing list call Alasdair on 0131 240 6960 or email alasdair.mackenzie@ckdgalbraith.co.uk.

New rural funding opportunities

Recently announced by the Scottish Government, the Scottish Rural Development Programme (SRDP) has funding amounting to £1.6 billion available over the period 2007 to 2013.

Described as having strong emphasis on delivering outcomes which benefit the Scottish people and to help make Scotland greener, wealthier, fairer, healthier and smarter, it is going to be open to farmers, foresters, estates, rural businesses and communities, with three stated key outcomes:-

1. Business viability and competitiveness
2. Environmental improvements
3. Creation of thriving rural communities.

Funding will be allocated on a national rather than regional basis although for the purposes of administration, Scotland has been split into eleven regions, based on Local Authority boundaries, with each region setting its own priorities to deliver national outcomes. Funding will be delivered to successful applicants via eight different schemes including-

LFASS (Less Favoured Area Support Scheme), LEADER Programme,
Rural Development Contracts (Land Management Options), and (Rural Priorities),
CCAGS (Crofting Counties Agricultural Grant Schemes), Forestry Challenge Funds and Skills Development Schemes.

Applications will be made online only and applicants will be asked to submit a Statement of Intent (SOI) which effectively is a precursor to a proposal. A Case Officer will be allocated, who will then give the applicant feedback on the SOI indicating via a system of ‘traffic lights’ as to whether they should proceed any further.

If given a green or amber light, applicants will then prepare and submit a proposal (again online) based on their SOI which, if deemed competent, will be scored by the Case Officer and if successful, cash will be allocated.
It is understood that as part of the assessment process, the same Case Officer that dealt with the SOI will also deal with the proposal and that the case officer has 28 days to consult with RPAC (Regional Proposal Assessment Committees) members.

Importantly, funding may be available to assist with specialist agent’s fees provided that the Case Officer has suggested that specialist advice should be sought and we understand that there is no ceiling on the amount that an applicant can apply for in terms of the SRDP. 

The scheme will go live for Statements of Intent on the 7th April with applications being possible from the 19th May. Detailed information and backgound to the scheme can be found on the Scottish Government website http://www.scotland.gov.uk/Topics/Rural/SRDP.

Our Rural team would be happy to talk to you to discuss the programme further. Call Dougal Lindsay in our Inverness office on 01463 224 343 dougal.lindsay@ckdgalbraith.co.uk.

SERVICE CHARGES IN COMMERCIAL PROPERTY

rics CODE OF PRACTICE

The RICS Code of Practice for Service Charges in Commercial Properties came into effect in Scotland on 11th September 2007. The Code will apply to service charges commencing on 1st April 2008 - it already applies in England.

The Code has been written in light of the UK Government’s concern about disputes over service charges and their alleged lack of transparency. In summary it seeks to:

* Remove services charges as an area of conflict.
* Deliver a budget to enable occupiers to forecast their overheads.
* Ensure that service charges are run “not for profit and not for loss”.
* Encourage transparency and communication between landlords and tenants.

The main message is for better communication to reduce disputes between landlords and tenants. It sets out a framework for property managers to deliver services effectively and economically whilst keeping occupiers informed timeously.

Legal Status
Its legal status is as a Guidance Note only, however it is probable that the courts will take it into account when deciding whether parties acted reasonably. Also, when instructing agents, Landlords are likely to require agents to meet the standards of the Code.

Requirements
The Code sets standards to provide consistency across all types of properties, by benchmarking performance. It also requires Landlords to ensure (i) best performance of suppliers and contractors by re-tendering regularly, (ii) transparency in regard to managing agents fees and (iii) minimum standards of reporting to occupiers. 

Definitions
It also looks to provide a clearer definition as to repairs (which are usually a tenant’s liability) against renewals (which are usually a landlord’s liability). i.e. providing a means to resolving grey areas such as the liability for the cost of replacing plant and machinery and how refurbishments should be treated in service charge recovery.

Conclusion
In conclusion, the Code does not come up with a new way of running service charges but sets minimum standards and asks for managing agents to ensure communication with their customers.  CKD Galbraith endorses this view,as it sits with their own service standards of always communicating with clients. If you would be interested in finding out more about the code, contact edward.holt@ckdgalbraith.co.uk.

PROPERTY INFORMATION PACKS (PIPS)

Background
As part of the Housing (Scotland) Act 2006, the Scottish Executive is committed to introducing legislation to improve the process of buying residential property on the open market in Scotland by the adoption of Purchaser Information Packs (PIPs). The final details of the proposal are expected soon although the intention is not to introduce the legislation until October 2008.

Purpose
The purpose of the PIP is to improve the residential property market in Scotland by meeting following policy objectives:

1. to provide sellers and buyers with better information about the house, including its condition and value;

2. to avoid the need for house buyers to commission valuations or surveys on a succession of properties that they do not ultimately buy;

3. to discourage the setting of artificially low upset prices by sellers which cause house buyers to commission a survey, only to realise that the value of the property is much higher than expected.

The 'PIP'
The seller will be responsible for preparing the PIP and failure to comply will attract a fine of £500, enforceable by Trading Standards. The PIP will include the following;

1. a brochure of the property,

2. a Single Survey which will contain a Home Condition Report, an Energy Performance Report, and Accessibility Report and a Valuation,

3. a Property Sale Questionnaire which will include the information normally contained in the Legal Searches, notably listed building status, building warrants, records of works carried out and the Land Certificate.


The PIP may not be commissioned more than 12 weeks before the property is marketed, and the survey report must be completed by a RICS registered surveyor or EU equivalent. The PIP must be supplied to a prospective purchaser within 7 days of being requested.

There will be no statutory shelf life for the PIP. Purchasers will need to assess the validity of the Single Survey if the property has been on the market for a number of months. Also, lenders will need to decide on the validity of the Valuation included in the document as it will have been commissioned by the seller and their client (the purchaser) will not be in a position to discuss the content of the report with the valuer.

The cost of the PIP will be met by the seller, and on the evidence from England, in the case of the HIP, is likely to be in the region of £600

Conclusion
PIPs clearly provide some advantages in that purchasers and their agents will be able to gather much more information on a property prior to making an offer. However, sellers may be reluctant to outlay the cost ahead of marketing the property when they are uncertain of achieving a sale.

Contact neil.cameron@ckdgalbraith.co.uk for more information about PIPs.