Leasing and Letting Level 1 Flashcards
What are assignments and sub leases?
Assignment is when the original tenant assigns the lease to another party, making them wholly responsible. Sub lease is another lease between tenant and sub tenant, original lease still remains in play.
Why is there a problem registering leases at the Land Registry?
Not a problem, just more work for Legal and we have a volatile portfolio with tenants being small businesses that can fail or out grow their spaces.
What information does a solicitor commonly need before agreeing a tenancy?
Heads of Terms, Plan, Authority to Proceed, Schedule of Condition, CPSE Commercial Property Standard Enquiries.
What are the differences in letting large/small units?
Small units tend to be for smaller businesses, they are cheaper and tend to be for shorter term.
What sort of agreement would a Telecoms mast have?
All changed with the new changed made to the Electronic Communications Code/Act. Currently we are on leases with the masts and one thing the leases allow for is for other coms providers to use the masts through other specific terms. e.g. %rent of sub tenant. We are seeking advice regarding one renewal. We have negotiated the Heads of Terms for another renewal. Also a specific term regarding attending site and performing maintenance and/or upgrades.
What RICS guidance is there regarding leasing?
RICS Code for leasing business premises Professional Standard
What is covered in the RICS Code for leasing business premises Professional Standard?
Mandatory requirements (negotiation and heads of terms)
Lease negotiation best practice
Template heads of terms
Guide for landlords and tenants
What is the difference between a lease and a licence?
A lease provides exclusive possession and a licence provides non exclusive possession.
What are some of the typical use classes for your properties?
Use Class B8 – Storage and Distribution
Use Class E(g) - Offices/Light Industrial
Use Class Sui-Generis - everything else
What rules need to be considered when marketing property?
Need to respect planning rules for adverts, no false or misleading statements. real square footage. Recently refurbished has to be true.
No misrepresentation.
Boards may be displayed only on, or within the curtilage of, the property to which they relate.
You can only place one board per property.
For residential properties, the maximum size allowed is 0.5 sq. m. In the case of two joined boards, 0.6 square metres in total is allowed. For commercial premises, which are obviously going to require a larger sign, signs can be up to 2 sq. m, or in the case of two joined boards, 2.3 square metres in total.
The maximum projection from the building is 1 metre, and this applies to both residential and commercial properties. The maximum height of the highest part of the board is normally 4.6 metres above the ground, but if your property is in a conservation area, this is reduced to 3.6 metres.
What act is there that enforces good marketing?
Property Misdescriptions Act 1991
What is a Section 146 notice?
Forfeiture notice as part of the Law and Property Act 1925
What is the difference between an agreement for lease and heads of terms?
An agreement for lease is a legally binding contract, while heads of terms are not usually legally binding
