The Key Elements of Commercial Leases
The day is intended to benefit letting agents and all others who need to understand the key issues in lease negotiation and the essential content of a commercial lease, together with its effects.
|3 May 2018||The Green Park Conference Centre, Reading||£280||BOOK|
Note: All prices are subject to VAT at the prevailing rate
It is increasingly the case that there is no such thing as a typical commercial lease.
A commercial letting might be a six-month tenancy of a pop-up shop, or it might be a 40-year building lease of an industrial site. Offices and shop units will often be let as part of a building, while a distribution centre or retail warehouse is likely to be stand-alone, and each raise different considerations when it comes to agreeing terms. Changes in technology and society continually create new uses, or challenge limitations on existing ones.
A solid grasp of the variety to be found in the main terms of commercial leases is essential, to ensure that the right deal is done, and that is what this course will deliver.
By the end of the course you will be able to:
- Identify appropriate options for documenting different lengths of term
- Appreciate the relevance of the Landlord and Tenant Act 1954, and how to avoid it where appropriate
- Understand what terms can prevent dilution of covenant strength, and the key legal parameters
- Evaluate the importance in different contexts of alterations restrictions, reinstatement obligations, and repairing obligations
- Appreciate the common service charge structures, and pitfalls to avoid
- Understand the impact that all these issues have upon the rental return from the property.
- Mark Shelton, Commercial Property Management Law Trainer, CPM Law Training Limited and Author of The Lease Guide website
- Anthony Banfield FRICS, Diploma in Project Management, Chartered Surveyor, Banfield Real Estate Solutions Ltd
Session 1 - Agreeing the lease & security of tenure
- Documenting heads of terms
- Formalities of documenting leases
- Overview of security of tenure
- Avoiding security of tenure
Session 2 - Identity of tenant
- Guarantors and rent deposits
- User of the property
- Alienation restrictions and group arrangements
Session 3 - Physical condition of the property
- Alteration, reinstatement, tenant’s fixtures
- Scope of repair obligation
- S.18 Landlord and Tenant Act 1927
- Service charge, EPCs
Session 4 - Break options, Rent, Rent Review
- Break options
- OMV and other options for determining rent
- Issues with turnover rents
- Rent review basics