Construction Management/ Quantity Surveying/ Architectural Technology (LAW)

Along with some associates, you wish to form a development company to use the skills obtained during your Degree. You have recently been sent the details by an Estate Agent of an interesting property that you are now actively considering recommending to your associates should be the first purchase for a potential development scheme.

The site is an old country house in a rural area surrounded by green fields.  Your aim is to converting the residential building into a hotel. Your new Development Company will then lease the end project to a hotel management company who will operate the day to day leisure business.

Prepare a report outlining to your associates the legal implications of your undertaking this purchase.

Your report should address the following matters although you do not have to give equal attention to all of them:

Describe how you would set up your company and the advantages of using a corporate structure.

The property could be currently either leasehold or freehold, discuss the implications of each and the effect on your purchase, the development and follow on operational structure.

Show that you know how a title is conveyed and explain the process to your associates.

Are there any easements or restrictive covenants affecting the title? Explain the implications of these, how they can be discovered, removed and the potential on the purchase.

How do you go about obtaining planning permission? It might be that the building is listed.  Explain the implications on the purchase and the development plus if planning can be obtained before the purchase of the site.

Show some knowledge of leasehold property including covenants that you may wish to impose on the hotel management company following the development..

Consider what steps need to be taken during construction work to ensure that you are not liable in tort.

Demonstrate some knowledge of business tenancies under Part 2 of the Landlord and Tennant Act 1954.

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