Overview Generally, commercial lease terms are much longer than residential property leases and letting agreements and place more responsibilities on tenants. There are no detailed regulations equivalent to those that apply to residential tenancies. “Commercial” leases are effectively investments in non-residential property. It is possible for a landlord and tenant to agree any type of lease terms and conditions they […]
Rent & Other Payments Rent is a key commercial term. Generally, rents are fixed for the entire term in shorter leases. In longer leases, it has been common for many years, to provide for rent reviews every five years. This reflects the statutory right of renewal of the lease, whereby there is a right to apply for rent reviews, every […]
Overview In the absence of specific clauses, there is no obligation on a landlord to provide services or for a tenant to pay for them. However, in certain situations, it may be implied by necessity that certain common part services are provided, for example in a letting of part of a building. It is desirable that the matters are formalised […]
Transfer of the Lease by Tenant “Assignment” is the process whereby a tenant transfers his interest in the property to another tenant and is usually thereby released from the lease obligations. If the lease says nothing, the tenant is free to assign. Most leases, therefore, contain restrictions on assignment. Nearly all leases of more than 5 years, allow for the […]
General Repairing responsibilities are critical under a lease. Generally, the longer the lease, the more likely the tenant will have greater repair responsibilities. A longer lease gives the tenant a longer-term stake in the property. He may enjoy statutory rights of renewal, which may endure indefinitely. From the landlord’s perspective, the lease is in the nature of an investment by […]
Repair Disputes Repairs is a common source of dispute between landlord and tenant.The repairing obligations will usually be set out in the lease. However, the applicaiton of the obligaiton may be debatable in th eparticaulr circumstances. Leases often provide that the landlord is entitled to inspect the property and specify the required repairing works. The clauses usually state that if […]
Use Clauses Leases will normally restrict the permitted use of the property. This will be particularly important in the case of a shopping centre or shopping arcade where there is a mix of different uses planning law will limit what a property may be used for and a breach has legal consequences. The landlord will also want to maintain the […]
Statutory Obligations There are various schemes of legislation that are of relevance to commercial property. There are obligations to comply with planning permission, building regulations, health safety and welfare legislation and disability discrimination legislation. Depending on the nature of the property and the tenant’s business, other special legislation may apply. Statutory Notices Leases will typically oblige the tenant to comply […]
Overview An improvement means any addition to or alteration of the buildings comprised in the tenement and includes any structure erected on the tenement which is ancillary or subsidiary to those buildings and also includes the installation in the tenement of conduits for the supply of water, gas or electricity but does not include work consisting only of repairing, painting […]
Compensation for Improvements Where a tenant leaves premises, because of termination of its tenancy, it may be entitled to compensation for certain improvements made by it or its predecessor. No right of compensation applies where the tenant surrenders the lease or the lease is terminated by reason of the breach or the non-payment of rent. The improvements must such that […]
Termination When a lease term ends, the tenant is obliged to deliver possession, unless he has an option or a statutory right to renewal. A tenant from period to period, without a fixed term is obliged to deliver possession when it is terminated by notice. A landlord is entitled to terminate a lease and seek possession where the tenant has […]
Overview The Landlord and Tenant Acts provide important statutory rights for tenants. Many important rights apply where the lease relates to a building or buildings and land where the land is ancillary and subsidiary to the building (defined as a tenement). Other landlord and tenant rights apply to all leases and tenancies, whether in writing or verbal. A tenement is […]
Procedure I In order to claim a new lease, a notice must be served within certain time limits by the tenant. Where a lease ends by the expiry of its term (agreed period), notice must be served before termination or within three months of the landlord serving notice of termination. Within that time limit, the tenant may serve a notice claiming […]
Circumstances of Termination Leases may terminate for a variety of reasons. A lease may terminate because the term of the lease has expired. A tenancy without a fixed term, typically, for successive periods may be terminated by notice by either party. The lease may terminate by reason of the non-payment of rent or breach of obligation by the tenant. The […]