commercial leases lecture 3
DESCRIPTION
Jennifer Slade. COMMERCIAL LEASES LECTURE 3. 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. - PowerPoint PPT PresentationTRANSCRIPT
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Jennifer Slade
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Commercial lease draftingStandard forms/precedentsExamples“Lease anatomy”Code of Practice for Commercial
LeasesLease of part and of wholePrescribed clauses
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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
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Defined terms and interpretation clause Use of schedules
Definitions in schedules Punctuation and layout Clause numbering, e.g.:
Clause 2.1.3.4 Clause 2(1)(c)(iv) Clause 2.1(c)(iv)
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Firms’ precedents Updating Client specific
Law Society Business Lease BPF – model clauses Other precedents: Lexis Nexis, Practical
Law
Construction of lease provisions
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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?
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Consider Billies Cookies lease
Comments/comparison?
How could drafting style of Billies Cookies lease be improved?
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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
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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
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What is the difference in structure between a lease of whole and a lease of part? Multi-lets Service charge Common parts Insurance
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Unit 1
Unit 2
Unit 3
w.c.
COMMUNAL
AREA
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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