Real Estate - Finance

Recent Articles

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  25.04.2023

  Middle East

  Cor­por­ate Tax Thought Lead­er­ship Series: Anti-Ab­use Rules for Small Busi­ness Re­lief

  BackgroundThe UAE enacted its Corporate Tax Law in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The Corporate Tax Law applies with effect from 1 June 2023. A 9% tax rate will apply on income exceeding AED 375,000 (approx. US$102k). Despite its name, the Corporate Tax Law treats a natural person conducting business in the UAE as a “Resident Person”. Such a person’s business income would be subject to corporate tax in the UAE. Should the legislation not have extended the scope of the Corporate Tax Law to natural persons...

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  20.04.2023

  United Kingdom

  Loan to Value de­fault?

  Geopolitical and macroeconomic challenges continue to press the commercial real estate market. In this finance briefing we consider the key initial steps and issues for lenders and borrowers facing a potential default of a loan to value financial covenant in an investment loan agreement.  We discuss the legal and practical considerations involved with commissioning the property valuation, the loan to value calculations, possible cure rights and the initial options potentially available for lenders and borrowers. There are wider considerations when considering a LTV default for a...

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  12.04.2023

  Middle East

  UAE Cor­por­ate Tax: Small Busi­ness Re­lief Cri­ter­ia

  BackgroundThe UAE issued its landmark Corporate Tax Law in December 2022 (Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses). The Corporate Tax Law applies with effect from 1 June 2023.The Corporate Tax Law provides a framework whereby small businesses who qualify as Resident Persons may elect to be treated as not having any taxable income for a tax period and therefore would pay zero corporation tax for that period (the “Small Business Relief”). However the Corporate Tax Law did not specify the criteria that Resident Persons would need to meet in order...

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  04.04.2023

  England

  High street rent­al auc­tions: the Gov­ern­ment launches a con­sulta­tion

  SummaryThe Government has launched a consultation on its proposals for High Street Rental Auctions in England. The proposals will give local authorities the power to auction the rental rights of commercial high street property that has been vacant for longer than 12 months in a 24-months period. The purpose behind this is to tackle the problem of persistently vacant property on high streets. The consultation seeks views on detailed aspects of the High Street Rental Auction policy including the running of the auction process, a proposed new Permitted Development Rights process, disapplication of...

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  30.03.2023

  United Kingdom

  Le­on v Kens­ing­ton Mort­gage Com­pany Ltd & An­or (2023) and the concept of sub­rog­a­tion

  This briefing considers the concepts of "subrogation" and "bona vacantia" which were discussed in the recent case of Leon v Kensington Mortgage Company Ltd & Anor [2023] EWHC 121 (Ch). Where a surety or guarantor has to make a payment of the liabilities it has guaranteed to a third party, it will look to the principal debtor to reimburse it for that payment and to assist with this, the surety will have a right to be subrogated in relation to any security also held by the beneficiary of the guarantee. The beneficiary will want to ensure that these rights of subrogation only apply once they have...

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  07.03.2023

  England and Wales

  The simple an­swer is the cor­rect an­swer – The Su­preme Court con­firms the scope of Rent Re­pay­ment Or­ders in Rak­usen v Jepsen

  The Supreme Court was recently asked to determine whether Rent Repayment Orders (“RROs”) could be made not merely against a tenant’s immediate landlord but, also, against the superior landlord who might have little to no involvement in the day-to-day running of that tenancy. Such an outcome would give tenants far greater power to retaliate against rogue landlords while, perhaps, adversely affecting the growing rent-to-rent market.BackgroundThe purpose of RROs is to protect tenants by penalising landlords who commit one of a number of housing related offences. The most common offence...

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