Maria Nicol is a Principal Associate in our commercial property department who deals with property matters involving a pension scheme.
R Company instructed Maria Nicol on the purchase of the land and buildings of a property in Aldridge in their pension scheme in the sum of £875,000. Instructions were received by way of recommendation from an agent contact of Maria on the basis Maria dealt with property related pension matters and knew the matter would be dealt with in an efficient and prompt manner.
The property was subject to an occupational lease which was coming to an end. the seller owed the tenant £30,000. The seller as part of the deal required r company to take an assignment of the existing occupational lease providing a premium to the tenant in the sum of £30,000 being part of the consideration due to the tenants. to allow the transaction to take place and to adhere to the corporate trustee’s pension scheme requirements and ensuring compliance Maria recommended and dealt with the following chain of events:-
- Assignment of the existing occupational lease with the seller’s consent in accordance with a licence to assign to the pension scheme’s related company in the sum of £30,000. this allowed the seller to receive the consideration needed for the tenant from the proceeds of sale;
- Surrender of the occupational lease between the seller (1) and the related company (2). this allowed vacant possession of the property;
- Purchase of the property by the pension scheme from the seller in the sum of £845,000 with vacant possession; and
- To allow the pension scheme to take the benefit of rental income preparation of a lease between the pension scheme (1) to the related trading company in accordance with the terms required by the valuer, the parties and the pension scheme. The lease term was for a term of 10 years based on an annual rent of £38,900 per annum.
As a pension scheme cannot own chattels the company also acquired loose items including a crane. to complicate matters the seller had transferred the property within family members not long before completion so Maria had to arrange a transfer at an undervalue policy indemnity policy to protect the pension scheme.
Maria dealt with post completion aspects in dealing with registration of the purchase in the pension scheme. further on a limited retainer basis she registered the lease for the related company at the Land Registry and assisted with Stamp Duty Land Tax obligations.
P of the pension scheme was so pleased to get the matter completed and being able to satisfy not only the occupational tenant but the pension scheme, the related company and seller’s requirements. Although there were many steps to overcome in this transaction Maria was extremely pleased to assist to see the matter through to completion.
