THE AGENTS

David Morgan

chartered surveyor and managing director of Cookseys DMP

Next July we are faced with a classic Catch-22 scenario regarding the construction of external smoking structures or shelters.

The thing is, the full Government guidelines have

not been finalised as to what constitutes an appropriate shelter - 50% open sides, less or more, we don't know. Also, planning consent may well be needed if the structure is permanent.

All leases and tenancies contain a provision that full compliance must be observed with all Statutory and Civic legislation and regulations.

So a ban on smoking is a negative internal feature that must be obeyed. The positive nature of an external structure is not a legislative or regulatory requirement, but is as a direct consequence of legislation. Is it a tenantable improvement which can be disregarded on rent review, or not?

This totally grey area of untested rent-review calculation will cause mayhem concerning permanent structures which undoubtedly will retain or increase fair maintainable trade.Sure, you will get permission from your property owner (subject to planning) to erect such structures (at your expense).

What is the betting that such consent will be conditional on no disregard applying to rent review which will probably cut straight across the standard disregards as to rent in your lease?

The effect on leasehold values? A good smoking shelter that is a permanent structure having the necessary planning consent will, without doubt, enhance values and improve ease of sale.

A classic example of dramatic value shifts is a Working Men's Club in the north Midlands inspected last week. It has absolutely no external smoking area and the front door opens onto a narrow pavement.

Almost all the members smoke, especially the lady members. Just across the road is another club that has a large back yard/patio with a smoking shelter.

Next July the first club will be stripped of its trade and be nigh on unsaleable except for alternate use!