SGS 9 - Alterations and user Flashcards
What are the typical quarterly rent payment dates?
25 March, 24 June, 29 September, 25 December
What does the Code for Leasing Business Premises recommend should be the only pre-conditions for exercising a break clause
1) that the tenant is up to date with rent payments
2) that the tenant gives up occupation
3) that the tenant leaves behind no continuing under leases
Why might the landlord include ‘insurance rents’ and the service charge in the definition of Rent in the lease?
To take advantage of the fact that when forfeiting the lease for non-payment of rent, you do not need to serve a s146(1) notice, so if you include these in the rent definition you can more easily enforce your rights.
If a lease contains no provisions on alterations, will the tenant be free to carry out whatever alterations it wishes?
Yes
If the landlord consents to the tenant carrying out alterations, how should this consent be granted?
In a licence to alter
what is the effect of s19(2) LTA ‘27?
It relates to restrictive covenants re alterations.
It upgrades a qualified covenant to a fully qualified covenant, meaning that the landlord cannot unreasonably withhold his consent to the carrying out of ‘improvements’
the landlord may charge the tenant a reasonable sum for legal/other expenses incurred in the granting of such consent.
Landlord can also require an undertaking from the tenant to reinstate the premises where the ‘improvements’ do not add to the letting value of the premises
What does the case law say about ‘improvements’?
Lambert v FW Woolworth - improvements are construed widely and seen through the tenant’s perspective
What does the case law say about ‘reasonable’?
Iqbal v Thakrar - where the landlord had justified concerns about the impact of the alterations on the structural integrity of the premises - withholding consent was reasonable
List some covenants you would find in a ‘licence to alterations’
Tenant covenants to:
- carry out the works in the agreed manner
- to obtain all necessary consents for the works
- possibly to reinstate the premises at the end of the lease or any structure affected by the works
- tenant’s improvements be disregarded at rent review
What is the effect of s19(3) LTA?
Where change of use does not involve any structural alterations, the landlord may not charge a sum/fine for granting consent to the change of use.
The landlord can charge a reasonable sum for any expenditure incurred in connection with granting the consent or for any damage/diminution to the value of the premises
If the lease does not envisage a potential change of use in the permitted use definition, what will you need?
a deed of variation
If a lease is varied, in what circumstances will it be implied that the lease has been surrendered?
1) where the variation affects the length of the original term of the lease
2) where the variation affects the extent of the premises
consequences? a further payment of SDLT may be due.
the lease will become a ‘new lease’ so might affect the landlord’s ability to enforce covenants against the tenant
