leases structure (week 7)

Question 1

what is a completion statement?

Answer 1

prepared by the landlord’s solicitor.
helps to calculate the amount of rent that is payable as usually yearly rent is paid quarterly.

Question 2

what is apportionment (what does it involve?)

Answer 2

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

Question 3

do all leases need to be registered?

Answer 3

no, not all leases need to be registered, leases are treated differently depending upon the length of term granted

Question 4

for a lease up to 3 years - does registration need to happen and does a note against the landlord’s title need to happen?

Answer 4

no register and no note against landlord’s title

Question 5

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?

Answer 5

no register but can make a note against the landlord’s title

Question 6

for a lease 7 years and above - does registration need to happen and does a note against the landlord’s title need to happen?

Answer 6

must be registered at the land registry and a note against the landlord’s title

Question 7

if the tenant is a company - do you need to register it at companies house?

Answer 7

no as the lease will not be charged so there is no need to register the transaction at companies house

Question 8

who is responsible for the repair and demise if the tenant is a commercial tenant?

Answer 8

commercial tenant is ALWAYS responsible for the repair and the demise

Question 9

who is responsible for repair if there is a lease of whole?

Answer 9

tenant is responsible for the interior, exterior and structural repair

Question 10

who is responsible for repair if there is a lease of part?

Answer 10

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

Question 11

how does a tenant know exactly what they are responsible for the repair of - what should be checked?

Answer 11

tenants covenant and definition of premises

Question 12

what does it mean if a lease is silent on alterations?

Answer 12

the tenant is free to carry out whatever alterations they want but cannot reduce the value of the premises.

Question 13

what is an absolute covenant?

Answer 13

Against alterations means they are not permitted and landlord has no obligation to even consider such request

Question 14

what is a qualified covenant?

Answer 14

means that they are only permitted with landlord’s consent. Landlord does not have to give consent

Question 15

what is a fully qualified covenant?

Answer 15

landlord must act reasonably in deciding to withhold covenant

Question 16

if the tenant wants to make improvements and there is a qualified covenant - what happens?

Answer 16

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.

Question 17

what is user?

Answer 17

user is what the lease allows tenants to use the premises for

Question 18

if a lease is silent on ‘user’ what is the effect?

Answer 18

if silent on user then the tenant is free to use premises for anything they like

Question 19

can a qualified user clause be converted to a fully qualified user clause via statute?

Answer 19

no, statue cannot convert it

Question 20

when do you do an OS3 search (pre-completion for a lease)?

Answer 20

this is for leases which are not registrable at land registry (eg, leases under 7 years)

Question 21

when do you do an OS1 search (pre-completion for a lease)?

Answer 21

search of whole as taking whole of the lease (eg, whole of title)

Question 22

when do you do an OS1 search (pre-completion for a lease)?

Answer 22

lease of part