Grant of a Lease Procedure Flashcards
What are the typical stages of the granting of a lease?
1) Pre-completion
2) Post-completion
Do grants of lease need an exchange?
Typically, they don’t.
What are the typical steps a landlord’s solicitor takes in pre-exchange?
- Prepare draft lease
- Deduce title
- Answer pre-contract enquiries
- Engross agreement of lease
What are the typical steps a tenant’s solicitor takes in pre-exchange?
- Review draft lease / amend
- Investigate title and raise queries
- Raise pre-contract enquiries and searches
- Arrange for tenant to sign counterpart lease
What is engrossing a lease?
To print a copy for signature
Who executes what for a lease?
Landlord executes original lease – tenant executes the counterpart
What can a landlord / tenant sign if, for example, they are still constructing the warehouse which is going to soon be available to lease and the tenant wants to secure it?
Sign an agreement for lease
What is an agreement for lease?
Where parties want to commit but either are not yet ready
How should the tenant’s solicitor do searches on a lease property?
Same way as they would on a freehold property
Is a deposit payable on exchange of lease?
No
How do landlord’s and tenant’s exchange?
Same as freehold – Law Society B
What is apportioning the yearly rent?
Counting number of days for which tenant is going to occupy in the current quarter (so they pay for that)
What pre-completion searches should be carried out for lease?
OS1 search – lease of whole
OS2 search – lease of part
What pre-completion searches should be carried out for non-registrable lease? What is the effect of this search?
OS3 – but does not confer priority
When is a lease registrable?
If 7 years +
