The Lifecycle of Commercial Leases
This course addresses the range of issues that need to be considered before a lease is signed, with implications for both landlord and tenant and identifies practical measures to reduce the risks. It examines the problems and events which will typically arise over the life of a commercial letting and how to deliver advantageous outcomes. This course surveys all the commonly-occurring issues, the pitfalls and the top tips.
|28 February 2019||Venue TBC, Central London||£260||BOOK|
Note: All prices are subject to VAT at the prevailing rate
This course is about joined-up thinking and linking together the factors that you need to have in mind, at all the main episodes that typically mark the life of a lease.
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. 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 practical impact of the main terms of commercial leases is therefore essential to ensure that the right deal is done for the specific property.
As lease expiry looms, 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.
The day is intended to benefit property managers, agents negotiating lettings, property investors and commercial occupiers.
the end of the course you will be able to:
- Understand what terms can prevent dilution of covenant strength, and the key legal parameters
- Recognise the issues which are likely to require specialist professional input
- 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
- Plan effectively for lease expiry, placing specific issues in the broad commercial context
- Understand the key commercial drivers for both landlord and tenant, and tactics for effective resolution of disputes
- Neil Gilbert BSc (Hons) MRICS, Partner, Tuffin Ferraby Taylor LLP
- Anthony Banfield FRICS, Diploma in Project Management, Chartered Surveyor, Banfield Real Estate Solutions Ltd
- 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'
Physical Condition of the Premises
- EPC rating
- Impact of fit-out
- Scope of repairing obligations
Agreeing the Key Lease Terms
- Guarantors and rent deposits
- User of the property
- Service charge
Dealings with the Property
- Alienation restrictions
- Group sharing arrangements
Rent and Rent Review
- OMV and other options for determining rents
- Issues with turnover rents
- Rent review basics
Preparing for Lease Expiry – Considerations for the Landlord and the Tenant
- Re-let, redevelop, convert?
- Timing of service charge works
- Impact of MEES
- Early assessment and strategy
- Preparation of schedule of dilapidations
Termination by Tenant
- Options under the Landlord and Tenant Act 1954
- Key deadlines
- Exercising break options – practicalities and pitfalls