Grant of a lease or underlease Flashcards

1
Q

Procedure: term over 7 years

A

Deed (intended as a deed, validly executed by landlord and delivered)

Registration

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2
Q

Procedure: term 3-7 years

A

Deed (intended as a deed, validly executed by landlord and delivered)

Overriding interest

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3
Q

Procedure: term 3 years or less

A

No formalities, providing:
- Lease takes effect in possession
- Is granted at market rent
- No premium is payable

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4
Q

Code for Leasing Business Premises

A

Mandatory requirements for RICS members
- Negotiations must be approached in a constructive and collaborative manner
- Party not represented by RICS member must be told about the existence of the code and recommended to seek professional advice
- Agreement of the terms of the lease must be set out in the heads of terms

Good practice
- Break clause should be conditional on tenant having paid the rent (not service charge and insurance rent)
- Repairing obligations should be appropriate to the length of the term
- Non-structural alterations: landlord should not prohibit these in a lease of whole
- Terrorism should be covered by insurance provided it’s available at a reasonable rate

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5
Q

Underlease term

A

Must be for a shorter term than the lease itself

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6
Q

Underlease procedure: license to underlet

A

The tenant’s solicitor will apply to the landlord for consent

The landlord’s solicitor will require the tenant’s solicitor to give an undertaking for costs before beginning work

Once the undertaking for costs is in place, the landlord’s solicitor will prepare the draft licence to underlet

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7
Q

Underlease procedure: underlease

A

The landlord’s solicitor will also want to see the draft underlease to ensure that it will comply with the tenant’s obligations under the lease

The underlease may be a full form lease, which will look similar to the tenant’s own lease, or it may be a lease by reference, which incorporates sections of the tenant’s lease by reference

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