Grant of a lease Flashcards
what are the essentials of a full repairing and insuring lease (FRI)
all costs are met by the tenant.
Landlord receives clear rent.
often as a yearly figure, but paid quarterly.
often upwards only rent review
what is an agreement for lease?
only when the tenant cannot move in straight away.
which enquiries will be raised?
CPSE 1 and CPSE 3.
Which pre-completion searches should be carried out for a lease?
OS1 for lease of whole, OS2 for lease of part- freezes register for 30 days.
If not registrable, OS3 could be used but does not confer priority.
how long does the lease have to be to be registered?
up to 3 years- does not need to be registered. not noted against landlord’s title.
3-7- does not need to be registered. can be noted against title.
more than 7- needs to be registered at land registry and noted against title.
what are the two types of repairing covenant?
- Full repairing covenant- tenant must keep and put the premises in good repair.
- Qualified repairing obligation- e.g keep it in as good as repair as it was when moved in.
who will be responsible for repair?
commercial tenant will always be responsible for the repair of their premises/
‘PUT’ the premises in repair and keep it in repair.
who will be responsible for insurance?
commercial landlord- but can be recovered from the tenant under the lease. insured risks tend to be fire, explosions, earthquake, storm, floor.
can qualified covenants against alterations be converted to a fully qualified covenant?
if the tenant’s proposed alterations are improvements from the point of view of the tenant.
reasonable timeframe does not apply here- that would have to be stated within contract.
how long does a lease typically have to be to include a rent review caluse?
often in 10 years or more leases, with a rent review at 5 years.
if the lease is silent on alterations, can they be underttaken>
yes, free to alter premises if lease is silent.
can a landlord demand increased rent or a sum of money in exchange for permission to change the use?
NO.
what is a tenancy at will?
allows either party to end the agreement at any time. written notice required.
similar to a licence, the tenant does not have any rights over the property, cannot pass on the tenenancy and must leave if sold.
- cannot have a specified rental period (or may be inferred as a periodic tenancy, giving the tenant security of tenure)
