1. COMMERCIAL LEASES LECTURE 3
Jennifer Slade
COMMERCIAL LEASES LECTURE 3

2. Commercial Leases: Lecture 3 Today’s topics
Commercial lease drafting
Standard forms/precedents
Examples
“Lease anatomy”
Code of Practice for Commercial Leases
Lease of part and of whole
Prescribed clauses

3. Commercial Leases: Lecture 3 Landlord and Tenant concerns
Drafting for the landlord
Control of premises
Marketability/investment value
Standard lease for development
Exceptional tenants
Confidentiality – EID’s
Tenant’s amendments
Flexibility, rent review, onerous provisions, marketability
Draft for certainty

4. Commercial Leases: Lecture 3 Drafting points
Defined terms and interpretation clause
Use of schedules
Definitions in schedules
Punctuation and layout
Clause numbering, e.g.:
Clause
Clause 2(1)(c)(iv)
Clause 2.1(c)(iv)

5. Commercial Leases: Lecture 3 Precedents/Standard Forms
Firms’ precedents
Updating
Client specific
Law Society Business Lease
BPF – model clauses
Other precedents: Lexis Nexis, Practical Law
Construction of lease provisions

6. Commercial Leases: Lecture 3 Examples of lease drafting
Gateshead lease (1964) vs Billies Cookies lease (1999)
Gateshead lease – consider:
term – expiry?
Clause 4
Clause 5
Clause 6
Plan
Easy to read? Easy to find information?

7. Commercial Leases: Lecture 3 Examples of lease drafting
Consider Billies Cookies lease
Comments/comparison?
How could drafting style of Billies Cookies lease be improved?

8. Commercial Leases: Lecture 3 Lease Anatomy
What are the principal provisions, and where would you find them?
Code of Practice for Commercial Leases
What is the purpose of a lease report?
For assignee
For purchaser of reversion

9. Anatomy of a Simple Commercial Lease:
Date, Parties
Definitions, Interpretation
Demise (habendum, reddendum)
TENANT’S COVENANTS
- repair, alienation,
user, alterations,
etc
Landlord’s Covenants
Provisos
SCHEDULES
- premises,
- rights, reservations
- rent review
- service charge

10. Commercial Leases: Lecture 3 Lease Anatomy
What is the difference in structure between a lease of whole and a lease of part?
Multi-lets
Service charge
Common parts
Insurance

11. C O M U N A L R E
Unit 1
w.c.
Unit 2
Unit 3

12. Commercial Leases: Lecture 3 Lease Anatomy
Land Registry Prescribed Clauses Leases
Necessary from 19 June 2006 for registrable leases – if not, Land Registry rejects
Prescribed clauses LR1 – LR14
Only front sheet and index can precede prescribed clauses – particulars pages must come after
Note Property prescribed clause – LR4
Prescribed clause overrides any other definition
See precedent in recommended text