COMMERCIAL LEASES Consolidation Lecture Jennifer Slade COMMERCIAL LEASES Consolidation Lecture

Exam Date: Tuesday 2nd June @ 9.30am Commercial Leases Half Option LLB module Exam Date: Tuesday 2nd June @ 9.30am

Commercial Leases: Consolidation Today’s topics Review – what have we covered and when? Past paper – 2003 Exam General comments on assessment

Consolidation Lecture: Review of topics covered Lecture 1 – Introduction (Workshop 1) Enforceability of leasehold covenants (revision of the rules) Termination Landlords remedies for non-payment of rent

Consolidation lecture: Review of topics covered Lecture 2 (Workshop2) Procedure on grant of a commercial lease SDLT on leases VAT on property and leases Lecture 3 – lease drafting basics (Workshop 3) Commercial lease drafting Stand forms/precedents Lease anatomy Code of Practice for Commercial Leases Lease of part and of whole Prescribed clauses

Consolidation Lecture: Review of topics covered Lecture 4 (Workshop 4) The Parties Habendum and Reddendum The Parcels Clause Lecture 5 (Workshop 5) Rent Rent Review

Consolidation Lecture: Review of topics covered Self Study Week Service charges Tenants amendments Lecture 6 (Workshop 6) Alienation Lecture 7 (Workshop 7) Repairing covenants Landlord’s remedies

Consolidation lecture: Review of topics covered Lecture 8 (Workshop 8) Alterations User Insurance Lecture 9 (Workshop 9) Landlord and Tenant Act 1954

Commercial Leases Past Paper Assessment reflects focus of that year’s course. Question 1 – Deleted, since asks about old law It was about the procedure for contracting out, based on a court order being obtained (now replaced by notice procedure)

Commercial Leases Past Paper Question 2 – this is about Mr Winship acting as guarantor (cl 6 – cite accordingly) note Liability Period (cl 1.20) he covenants to pay rent and perform covenants, if T defaults – also will take new lease following disclaimer guarantee continues notwithstanding variation, giving time, etc (note general law) Amendments – limit liability (e.g. none if T on an AGA), L to inform if T defaults, G to take part in rent review, T to assign to G if defaults

Commercial Leases Past Paper Question 3 – rent review/user covenant V. restrictive user (Cl 1.26/Sched 3 para 3.1.1 – recruitment agency) Widened at review (Sched 2 para 1.1)- use as offices – so unfair inflation of rent – delete

Commercial Leases Past Paper Question 4 – Cl 3.27 – L’s release from liability Explain that, unlike T, L is not released automatically when sells interest – L must apply to T (who has 4 weeks) – ss.6, 8 1995 Act Clause means that if T objects must be reasonable Nb – now L could use Avonridge clause?

Commercial Leases Past Paper Question 5 – see workshop 7 Question 6 – deleted – odd question Question 7 – T not occupying for 12 months See Sched 3 para 3.1.2 – T must not leave Premises unoccupied for more than 1 month without telling L, etc So T could be in breach – discuss forfeiture

Commercial Leases Consolidation Know your way around syllabus Text Lectures and Workshops 70:30 split (practical:MCQ’s) Calculator! MCQ’s Best answer

Commercial Leases Consolidation Go through advance documentation carefully Note relationship between provisions If asked about a provision, check (and report) its effect at rent review as well Clauses can be acceptable as well as unacceptable – explain Refer to relevant clauses in answers

Commercial Leases Consolidation Key provisions of Acts Key cases “Amendments” Describe and explain Be commercial (Commercial and Business Aware!!)

Commercial Leases Consolidation Good Luck!!!