Break clauses

Question 1

What are the typical conditions in a break clause

Answer 1

Compliance with the tenants covenants
Payment of all rent and other sums due
Vacant possession

Question 2

Advantages of a pre let

Answer 2

If tenant needs specific facilities. The main advantages to the tenant is the delivery of a bespoke building designed to suit their needs

Question 3

Disadvantage to a pre let

Answer 3

Lengthy and complex process and a level of risk in the event of developer/contractor not performing

Question 4

What is the legal framework attached to an agreement for lease

Answer 4

The lease in a pre agreed form
Licence for alterations
Specification and plans
Developers guarantee/bond
Warranties
A collateral warranty gives the tenant a direct contract with construction team
Most developers unwilling or unable to give guarantees for latent defects, and may put decennial insurance in place to cover this risk

Question 5

What is the current uniform business rates

Answer 5

0. 499 for RVs less than £51,000
1. 512 for RVs more than £51,000
2. 532 applies to london properties with RV over £70,000