7 Benefits Existing Tenants Can Expect From Rooftop Development

Key Takeaways

• Tenants benefit financially from selling airspace rights or increased property values.
• Airspace development increases residential space and reduces environmental impact by using existing structures.
• Facilities such as elevators, lighting, and HVAC systems are upgraded..

As one of the most viable long-term solutions to the housing needs of London, airspace development makes more quality residential space available by building upwards. But what does a rooftop development do for the existing tenants if they don’t necessarily get to move into the new space?

This month at London Penthouse, we’re going to talk about what existing leaseholders can stand to gain when rooftop development is applied to their building. Here are our top seven points:

Financial reward for airspace

There are different levels of financial gain to be had by existing leaseholders. The biggest gain is if the leaseholders have a share of the freehold and are selling their airspace rights in order for the space to be developed, earning them a lump sum in most cases. Alternatively, they could see a lift in the value of their own property through the improvements that are made to the building, making it a more desirable property in the future.

Minimised environmental impact

Most construction brings with it an environmental impact, whether that’s the use of natural land to develop on or the demolition of existing buildings that then requires new materials to be manufactured using virgin resources, e.g. steel and cement. 

With airspace development, however, leaseholders of an existing building will have comfort in the knowledge that the work being carried out will have a minimal impact on the environment. Local sites are preserved, while fewer materials are required to add to existing buildings.

Cohesion in the community

There is a lot to be said for retaining the positivity that a community holds. A positive impact can be seen on communities when buildings and open outdoor spaces are preserved and improved (see more on this in point five). Instead of watching the heritage of an area be pulled down or homes squeezed desperately into brownfield sites, airspace development allows more people the opportunity to live in London and become part of a community. 

Upgraded facilities

As part of an airspace development agreement for a building, there are often renovations made to the overall look of the building and the facilities provided. From new and improved elevators to more energy-efficient lighting and HVAC infrastructure, leaseholders don’t have to be the ones living in the new rooftop apartments to see an improvement in the place they live.

Fresh, enjoyable communal areas

Communal areas can also enjoy a refresh; this includes hallways and stairwells indoors as well as the renovation of the exterior spaces. Any outdoor area that is given some much-needed attention can be a benefit to all leaseholders in the building, especially soft and hard landscaping around the property. Even the facade of the building could be improved, making the building more appealing and pleasing to look at on a daily basis.

Security improvements

In many buildings, a security overhaul can add an improved level of confidence and a sense of safety. Something as simple as a new door entry control or an updated fire alarm system can put many fears to rest for existing residents who may have seen such elements go overlooked for a long time. 

Security doesn’t just mean keeping out intruders either, it can also include upgrading the building to meet the latest fire safety regulations. Compliance with the Regulatory Reform (Fire Safety) Order 2005, and more recent legislation, gives peace of mind that all the right materials and practices are being used.

Potential for lower maintenance costs

A long-term benefit for existing leaseholders of a building going through airspace development, where countless other areas of the property see an uplift, is that maintenance costs are kept lower in the future. Without such improvements, repairs and maintenance on an ageing building can see service costs rise to match the increasing amount of attention the property needs.

How London Penthouse Can Help

While the benefits for existing leaseholders will vary between different airspace development projects, these seven factors should all help to show the multitude of ways in which life can be improved from the very top to the bottom floor. At London Penthouse, we turn unused airspace into luxury residential penthouses, helping to alleviate the housing crisis here in the capital and improving the lives of existing residents through upgrades and remedial work.

Enquire today about our work and find out how the airspace of your property can be used to create a net benefit for all.