leases structure (week 7) Flashcards
what is a completion statement?
prepared by the landlord’s solicitor.
helps to calculate the amount of rent that is payable as usually yearly rent is paid quarterly.
what is apportionment (what does it involve?)
involves counting the number of days for which the tenant is going to occupy the current quarter, and calculating an appropriate proportion of the yearly rent
do all leases need to be registered?
no, not all leases need to be registered, leases are treated differently depending upon the length of term granted
for a lease up to 3 years - does registration need to happen and does a note against the landlord’s title need to happen?
no register and no note against landlord’s title
for a lease from 3 years - 7 years - does registration need to happen and does a note against the landlord’s title need to happen?
no register but can make a note against the landlord’s title
for a lease 7 years and above - does registration need to happen and does a note against the landlord’s title need to happen?
must be registered at the land registry and a note against the landlord’s title
if the tenant is a company - do you need to register it at companies house?
no as the lease will not be charged so there is no need to register the transaction at companies house
who is responsible for the repair and demise if the tenant is a commercial tenant?
commercial tenant is ALWAYS responsible for the repair and the demise
who is responsible for repair if there is a lease of whole?
tenant is responsible for the interior, exterior and structural repair
who is responsible for repair if there is a lease of part?
areas of the building that are used commonly by tenants are the landlord’s responsibility.
landlord will bear the responsibility for common parts but tends to pass the costs to tenants using service charge
how does a tenant know exactly what they are responsible for the repair of - what should be checked?
tenants covenant and definition of premises
what does it mean if a lease is silent on alterations?
the tenant is free to carry out whatever alterations they want but cannot reduce the value of the premises.
what is an absolute covenant?
Against alterations means they are not permitted and landlord has no obligation to even consider such request
what is a qualified covenant?
means that they are only permitted with landlord’s consent. Landlord does not have to give consent
what is a fully qualified covenant?
landlord must act reasonably in deciding to withhold covenant
if the tenant wants to make improvements and there is a qualified covenant - what happens?
if the lease contains a qualified covenant against alterations then it can be converted to a fully qualified covenant as the tenant’s proposed alterations are improvements from the point of the tenant.
what is user?
user is what the lease allows tenants to use the premises for
if a lease is silent on ‘user’ what is the effect?
if silent on user then the tenant is free to use premises for anything they like
can a qualified user clause be converted to a fully qualified user clause via statute?
no, statue cannot convert it
when do you do an OS3 search (pre-completion for a lease)?
this is for leases which are not registrable at land registry (eg, leases under 7 years)
when do you do an OS1 search (pre-completion for a lease)?
search of whole as taking whole of the lease (eg, whole of title)
when do you do an OS2 search (pre-completion for a lease)?
lease of part
