Grant of a Lease Flashcards
1
Q
What are two different types of leases?
A
Residential and commercial
2
Q
What are the different types of leases?
A
- Long-term residential lease (e.g. 99 or 999 years)
- Assured shorthold tenancies (short term residential lease)
- Commercial lease
3
Q
What is the advantage of a lease from a tenant’s perspective?
A
- No need for large upfront capital investment
- Flexibility to move out of a lease
- Some properties only available as leaseholds
4
Q
Who are commercial landlords?
A
- Private investors
- Institutional investors
5
Q
What are concerns of institutional investors?
A
- Full repairing and insuring lease: Tenants cover maintenance and insurance
- Covenant strength: Landlords assess tenants’ financial stability and assets for lease obligations; Weaker tenants may need guarantor / rent deposit
6
Q
What is the role of commercial property solicitor in leases?
A
- Granting new leases to tenants
- Reviewing tenant applications
- Advising on lease breaches
- Handling lease expiry issues
7
Q
What is the advantage of commercial property for a landlord?
A
Offers income, capital growth, and is reasonably secure
