Lease Expiry Issues
This course surveys
all the commonly-occurring lease expiry issues, the pitfalls and the top tips and is highly relevant to property managers, agents negotiating lettings, property
investors and commercial occupiers.
|10 May 2018||Wokefield Estate, Reading|
Note: All prices are subject to VAT at the prevailing rate
Lease expiry can be a high-stress period, not to mention an expensive one, for both landlord and tenant. Dealing with issues concerning the physical condition of the property, through dilapidations and reinstatement claims, is an obvious factor, but neglect of timing and financial management issues can also give rise to problems, as can an insufficient mastery of the procedures under the Landlord and Tenant Act 1954. Experience shows that the key to a smooth transition is early consideration of the commercial options, and effective preparation for enforcing lease obligations within that context. This course surveys all the commonly-occurring lease expiry issues, the pitfalls and the top tips.
This course if of relevance to property managers, agents who are negotiating lettings, property investors and commercial occupiers.
By the end of the course you will be able to:
- Plan effectively for lease expiry, placing specific issues in the broad commercial context
- Understand the likely timescales involved
- Recognise the issues which are likely to require specialist professional input
- Understand the key commercial drivers for both landlord and tenant, and tactics for effective resolution of disputes
- Mark Shelton, Commercial Property Management Law Trainer, CPM Law Training Limited and Author of The Lease Guide Website, 'A Practical Guide to the Law of Dilapidations' and 'A Practical Guide to Applications for Landlords' Consent and Variation of Leases'
- Neil Gilbert BSc (Hons) MRICS, Partner, Tuffin Ferraby Taylor LLP
Session 1 – Termination by tenant
- Managing the relocation process – options under the Landlord and Tenant Act 1954
- Tenant’s notice of non renewal
- Tenant’s request for a new tenancy
- Tenant’s notice to quit, form and time scales
- Contractual and legal expiry date and arrangements
- Terminating a tenancy after proceedings issued; discontinuance and costs
- Key deadlines
- Exercising break options – practicalities and pitfalls: deadlines, timetables, conditions that must be satisfied, payments, apportionment of rent, vacant possession requirements, repair obligations and premium payments
Session 2 – Preparing for expiry – considerations for the landlord and tenant
- Re-let, redevelop, convert?
- Timing of service charge works
- Impact of MEES (Minimum Energy Efficiency Standards) and lease end dilapidation
- Early assessment and strategy
- Costs of schedule of dilapidations
Session 3 – Termination by landlord
- Grounds for opposing renewal of lease under Landlord and Tenant Act 1954
- Disrepair, rent breach, other breaches, alternative accommodation
- Intention to redevelop
- Intention for landlord to occupy
- Grounds for compensation. Exclusions of compensation
- Nature of any works
- The approach by the Courts
- Intention, Misrepresentation, timing, the need for possession
- Suitable alternative accommodation
- Tenant default
Session 4 – Dilapidations at lease expiry
- Pre-Action Protocol
- Preparation of schedule
- Substantiating loss
- The RICS Dilapidations Scheme
Session 5 – Fixtures, reinstatement, vacant possession
- Compensation for Improvements
- Identifying the obligations
- 'Too-late’ reinstatement requirements
- Identifying chattels, fixtures and tenant’s fixtures – recent case law
- What is vacant possession?
- Rent and service charge collection
- Repair Obligations: Must tenant repair fixtures?
- Dealing with tenant goods left at the premises