Don’t let your next redevelopment be killed by CIL
How to avoid crippling CIL costs and keep your next project viable. Ethically, legally and on time.
How to avoid crippling CIL costs and keep your next project viable. Ethically, legally and on time.
There is a particular scenario where a ‘change of use’ redevelopment of a long-term void can become liable for a CIL bill which – given its size – can make all the difference between the said project going ahead or not.
What all too few architects and developers realise is that there is a solution available in that same scenario, which enables them – ethically and legally and without adding to the development timeline – to achieve a full or partial CIL exemption.
Of all the occasions when ASTOP puts a charity or community organisation into an empty commercial space, it is in this instance – where there is a potential exposure to CIL – where we realise we can make the greatest financial difference. (Far greater than the savings made by mitigating the empty rates bill and higher insurance costs on voids.)
For instance, in the real-world case study shared below, that saving was £750,000 – and ensured the redevelopment to boost much needed housing stock became viable and received the local council’s blessing.
That is why ASTOP is committed to making this solution far more widely known – and why we recently started running free CIL webinars.
We outline when CIL kicks in (with ’change of use’) & what you can do about it
We show how we achieved a full CIL exemption with a real-world case study.
You can see the full recording of our recent CIL webinar
You can get in touch for a 121 about how to mitigate your CIL exposure
On a ‘change of use’ redevelopment, it’s worth knowing that an extended period of vacancy can also work against you. And here’s why.
It turns out that when you combine an application for ‘change of use’ with a long-term void – we’re talking about a vacancy of more than 3 years – you can often become liable to pay CIL. And that will be both at a borough level and a mayor level on ALL of the existing floor space.
Why is that? It’s because it’s deemed as creating new pressure on local infrastructure.
So what’s the answer? How do you reduce your exposure to such a liability?
So how do you mitigate the scope of CIL, in such a scenario? There is a beautifully simple solution that all too few developers and architects know about.
Simply by having the property occupied for six months – you can mitigate the scope of CIL. And the ideal temporary tenants are charities and community organisations, who are happy to move into such a property on a temporary and completely flexible basis.
When they do, it means you will also have a reduced rates bill – and no need for long tie-ins. It’s a win-win scenario with multiple positive repercussions.
Once the property has been occupied for at least six months in the last three years – you are set to achieve either a partial exemption… or a full 100% exemption, as ASTOP successfully managed in the case study outlined below
This was a scenario where a 20,000 square foot building had sat empty for 10 years, and where – because a ‘change of use’ redevelopment was planned – the project was liable for CIL.
Knowing that a temporary occupancy was needed, the developer reached out to ASTOP, who then found suitable vetted charity tenants, put them in place, and managed their tenancy.
During tenancy, ASTOP took various steps to help ensure the exemption. These included:
Taking all of the above steps, in tandem with Alfie Yeatman of HGH Consulting, ASTOP was able to ensure that the client achieved a full exemption – which in this case meant a saving of £750,000, on the proposed 72 flats, that equated to over £10,000 per flat.
On this redevelopment, the charity occupiers included:
If you are an architect, developer or planner who is concerned about your potential liability to CIL (on a ‘change of use’ redevelopment where there’s been a long-term void) and are looking to protect your redevelopment’s viability, contact our team today.