September 2023

Tees advises on the purchase of over 230 acres of land and an industrial site

Posted on 12 September 202327 March 2025 by Sarah O'Sullivan

Looking back over the last 12 months; Tees are thrilled to have advised longstanding clients, R S Coleman and Schwier Farms Limited, on their joint purchase of over 230 acres of arable land and a muti-let industrial site in Essex in December 2022.

Simon Dixon Smith of Land Partners acted for the purchasers from an agency perspective and Paul Walker of Whirledge & Nott was the sellers’ agent.

Paul Walker stated:

“This sale was one of the largest areas of land offered to the market in the Rodings area for some time. Strong local interest was expected, especially from neighbours many of whom are well known by the vendors and themselves valued clients of W&N. Confidentiality and an understanding the parties’ objectives and sensitivities is always paramount but even more so in this case, given the personal connections. The strong professional relationship between the respective agents and solicitors greatly helped in navigating the complexities of this transaction to keep all parties aligned through to completion.”

From the legal side; Partner, Daniel Fairs of Tees’ Rural and Commercial Property team, took the lead in advising both purchasers on all aspects of the transaction. A third party was also involved in this and purchased a third parcel.

A number of complications arose during the transaction; including unregistered land, overage in favour of the Seller, bank funding, and the separate parcels of land needed rights over each other. Further elements to this transaction, related to a Farm Business Tenancy and a Pre-emption Agreement with all elements needing to be completed at the same time as the purchase.

Daniel was able to navigate all the complications and issues and advise the clients through the purchase, resulting in an excellent outcome for all involved.

Daniel Fairs commented:

“The Coleman and Schwier families have been clients of Tees for a number of years, and I have worked closely with the clients for the last 4 years to understand their farming business. I was delighted to have advised the clients in connection with this complex purchase and worked closely with all the professionals to get this deal across the line. I hope to continue supporting the clients with expanding their business from both a farming and diversification point of view in the future.”

Coleman and Schwier families commented:

“We can’t speak highly enough of Daniel Fairs of Tees. We have used him for a variety of different cases, and we have always been pleased with his work. Daniel takes the time to explain things in layman’s terms, helping to clarify any and all points that can be lost in the translation of legal documents. We were also impressed with the solutions Daniel proposed to complicated situations that arose during the cases that he has taken for us. Daniel is an excellent solicitor, and we would thoroughly recommend him.”

Investing in a French property at a reduced cost: The purchase of the bare title only

Posted on 12 September 202323 March 2025 by Sarah O'Sullivan

Buying a French property at a lower price is possible through the concept of bare ownership. By purchasing only the bare title, you reduce upfront costs and gain full ownership at the end of the usufruct period. Here’s how it works and why it could be a smart investment.

What is Bare Ownership?

Bare ownership involves dividing property ownership into two parts:

Bare owner: Owns the property but cannot use or benefit from it during the usufruct period.
Usufructuary: Holds the right to use the property and receive rental income.

Once the usufruct period ends, the bare owner automatically gains full ownership. The responsibilities and obligations of each party are outlined in the authentic deed of sale, notarised as required by French law.

Both the usufruct and the bare title have a value, which is calculated by the French tax administration based on the age of the usufruct holder at any given time, as follows:

Age of Usufruct holder	Value of usufruct	Value of bare title
Under 21 years	90%	10%
From 21 to 30 years	80%	20%
From 31 to 40 years	70%	30%
From 41 to 50 years	60%	40%
From 51 to 60 years	50%	50%
From 61 to 70 years	40%	60%
From 71 to 80 years	30%	70%
From 81 to 90 years	20%	80%
From 91 years	10%	90%

Why buy in Bare Ownership?

Investing in bare ownership offers numerous advantages:

Reduced purchase price: Acquire property at a 30-50% discount compared to full ownership.
Tax benefits: Loan interest may be deductible if the usufruct is held by a social landlord or taxable lessor.
No management costs: Maintenance and management expenses are borne by the usufructuary.
No rental risks: The usufructuary handles tenant management.
Wealth tax exemption: The property is excluded from your taxable real estate wealth (IFI).
No property taxes: Property and housing taxes are paid by the usufructuary.
Guaranteed full ownership: At the end of the usufruct period, you become the sole owner with no additional cost.
Estate planning: You can transfer bare ownership to heirs with reduced inheritance taxes.

Potential drawbacks of Bare Ownership

No immediate use or income: You cannot occupy the property or earn rental income until the usufruct ends.
Financing challenges: Banks may hesitate to finance bare ownership without additional guarantees.
Responsibilities: Without clear terms in the contract, major repairs could become the bare owner’s responsibility.

How to purchase bare ownership

Bare ownership purchases can occur between individuals or through specialised companies that manage usufructuary rights. Typically, companies offer limited usufruct periods (15-20 years) and professionally manage the property. This arrangement ensures a lower purchase price and hassle-free management.

Before committing, UK buyers should consult with a British accountant to assess any UK tax implications.

Financing a Bare Ownership purchase

While financing options are limited, possible solutions include:

Mortgage on other assets: Using another property as collateral.
Life insurance pledge: Pledging a life insurance policy as security.
In fine loans: Paying only interest during the loan term, with capital repaid at maturity.

Additional considerations

Donation in Bare Ownership: Gifting bare ownership can reduce inheritance taxes. However, this process is irrevocable.
Sale in Bare Ownership: Sellers seeking liquidity can retain usufruct rights while accessing capital from the sale.
Parent-child purchases: Parents can buy usufruct while children hold bare ownership, facilitating property acquisition.

Expert guidance

Bare ownership can be a smart investment, but legal and financial advice is essential. Contact Avocat Herve Blatry for personalised guidance on navigating the complexities of bare ownership in France.

Planet Education’s £3.8M freehold purchase: York House deal

Posted on 4 September 202327 March 2025 by Sarah O'Sullivan

Tees have recently advised Planet Education Networks (Planet Education) on its £3.8 million freehold purchase of York House in Birmingham.

Planet Education runs a global network of education institutes aiming to provide high-quality higher education courses. With the purchase of York House, which sits on a prominent corner location at Newhall Street and Great Charles Street and is a substantial five storey building of 22,175 sq ft, Planet Education intends to turn the property into an education campus to expand its existing campus in Birmingham.

Partner, Daniel Fairs, who was assisted by solicitor, Andrew Harrison, worked quickly and efficiently to finalise the purchase within Planet Education’s required timescales. Leaning on their experience, Daniel and Andrew were able to complete the transaction within six weeks of the agreement of the Heads of Terms.

Daniel Fairs’ commented:

“It was a pleasure to have advised the purchasers, Planet Education Networks Ltd, with their strategic purchase of York House. All the professionals worked tirelessly to get this deal across the line. I look forward to hearing more as the property develops and seeing the end result when the campus is up and running”.

This project is a great example of the potential and growing trend to repurpose city centre office buildings such as York House for alternative purposes such as for the educational and living sector.

Guide to farm diversification opportunities after the Basic Payment Scheme (BPS)

Posted on 1 September 202324 April 2025 by Sarah O'Sullivan

The post-BPS era has brought about significant changes in the agricultural landscape of the United Kingdom. Whilst there are several different grants and schemes available to landowners, farm diversification is a viable strategy to secure financial stability and thrive in the changing environment, as farmers face the challenges of adapting to this new reality. This article will explore farm diversification, examining the legal considerations and opportunities for farmers in the post-BPS era.

Understanding farm diversification

Farm diversification refers to the practice of expanding agricultural operations to include non-traditional activities or ventures. By diversifying their income streams, farmers can reduce reliance on the uncertain profitability of traditional farming practices and mitigate the impact of the loss of BPS. However, it is important to note that farm diversification can involve legal complexities that must be carefully navigated to ensure compliance with regulatory frameworks.

Guiding you through diversification opportunities

Our Agricultural team at Tees can play a crucial role in assisting farmers in enabling and advising on potential diversification opportunities. We have an in-depth understanding of the legal and regulatory frameworks governing various sectors, enabling us to guide farmers through the process alongside their accountants and land agents. Some common avenues for farm diversification include:

Renewable energy projects: With the increasing demand for clean energy, farmers can explore opportunities in wind, solar, battery, biomass energy or anaerobic digestion. Our renewable energy team can assist by advising on contracts, options and leases including addressing planning and environmental mitigation schemes.

Agri-tourism: Many farmers have found success by opening their farms to the public and offering attractions such as farm tours, educational workshops, camping, glamping or other farm-stay experiences. Our team of solicitors can help you navigate the related regulations, liability, health and safety and business structures including commercial agreements and terms and conditions.

Food and beverage production: Value-added activities such as on-site food processing, artisanal products or farm shops can provide additional revenue streams. We can assist in establishing appropriate business structures and ensuring compliance with food safety regulations.

Rural recreation and leisure: Using farm assets for activities such as nature reserves, fishing lakes, equestrian centres, adventure parks, events, festivals and secure dog walking fields can attract visitors and generate income. We can help farmers address legal matters related to liability and public access rights, as well as advice on commercial agreements and terms and conditions.

Natural resources: Biodiversity Net Gain can offer alternative income streams for farmers. Our Natural Capital Team can assist with drafting and negotiating long term Farm Business Tenancies (FBT’s) for Biodiversity Net Gain and Woodland Carbon Units, negotiating documentation for landowners documenting arrangements with habitat bank providers including FBT’s and Habitat Management Agreements, dealing with Section 106 Agreements where offsite offsetting is being provided for development sites getting approval of lenders to enter into such agreements where land is charged to a bank.

Legal Considerations when diversifying your farming business

Engaging solicitors familiar with agricultural law is essential for farmers pursuing diversification projects. Here are some legal considerations we can assist with:

Considering the tax implications with your accountant, both on terms of taxation of income streams and capital taxes is vital. Our property and commercial team can assist with implementing tax advice given by re-structuring business and finance and/or moving land and assets into separate legal entities.
contracts and agreements: developing robust contracts is vital when engaging in activities such as leasing land for renewable energy projects, negotiating supply agreements, or partnering with third-party businesses. Our commercial team can ensure the protection of farmers’ interests and avoid potential disputes.
regulatory compliance: diversification activities are subject to a range of regulations, including health and safety, environmental protection, food safety, and licensing. Our regulatory team can guide farmers in meeting compliance requirements and reducing legal risks.
intellectual property: farmers involved in product development or branding should consider protecting their intellectual property through trademarks, copyrights, or patents. Our commercial team can assist in securing these protections and enforcing them if necessary.
succession planning: farm diversification often involves long-term investments. We can help farmers navigate succession planning, ensuring a smooth transition of assets and business operations to future generations running the business.