Grant of Lease

Question 1

From and Including (term)

Answer 1

starts: date
Ends: day before

Question 2

From (DATE) - term

Answer 2

Starts: day after DATE
Ends: on that day

Question 3

Repair (FRI)

Answer 3

T responsible unless insured risk
T must bring up to scratch
No renewal (e.g. does not have to reinstate)
Good repair and condition is more onerous

Question 4

Insurance - FRI lease

Answer 4

LL insures (does not cover tenant’s property)
T pays premium
If still unfixed for 3 years, LL can terminate by notice

Question 5

Rent - FRI lease

Answer 5

Market rent (rack rent)

Question 6

Rent review (FRI lease)

Answer 6

upward only
LL can exercise even if they missed date (time is not of essence)

Question 7

Assumptions and Disregards for Rent Review

Answer 7

Assumptions:
- T is not in breach of any covenants
- Vacant possession
- Good repair
(NOTE: if LL is in breach, no assumption not in breach. Will reduce value)

Disregards
- Tenant improvements

Question 8

Code for Leasing Business Premises

Answer 8

RICS members must comply (unless 6 months or less)
Mandatory requirements:
- HoTs in writing
- Advise about code and recommend T seeks advice
- Collaborative and constructive

Question 9

OS searches

Answer 9

OS1: lease of whole
OS2: lease of part
OS3: non-registrable (7 years or less) - no priority period

Question 10

SDLT on leases

Answer 10

Long-resi: same as freehold
Commercial: Premium + Rent + VAT (NPV)

Question 11

Registration of Lease over 7 years

Answer 11

LL title is registered:
- AP1
- SDLT 5
- Consent from LLs lender
- copy of lease

LL title unregistered
- FR1,
- SDLT 5
- Copy of lease