COMMERCIAL LEASES Consolidation Lecture

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COMMERCIAL LEASESConsolidation Lecture

• Jennifer Slade

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Exam DateTuesday 2nd June _at_ 9.30am

• Commercial Leases Half Option LLB module

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Commercial Leases ConsolidationTodays topics

• Review what have we covered and when?
• Past paper 2003 Exam
• General comments on assessment

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Consolidation LectureReview of topics covered

• Lecture 1 Introduction (Workshop 1)
• Enforceability of leasehold covenants (revision
  of the rules)
• Termination
• Landlords remedies for non-payment of rent

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Consolidation lectureReview of topics covered

• Lecture 2 (Workshop2)
• Procedure on grant of a commercial lease
• SDLT on leases
• VAT on property and leases
• Lecture 3 lease drafting basics (Workshop 3)
• Commercial lease drafting
• Stand forms/precedents
• Lease anatomy
• Code of Practice for Commercial Leases
• Lease of part and of whole
• Prescribed clauses

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Consolidation LectureReview of topics covered

• Lecture 4 (Workshop 4)
• The Parties
• Habendum and Reddendum
• The Parcels Clause
• Lecture 5 (Workshop 5)
• Rent
• Rent Review

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Consolidation LectureReview of topics covered

• Self Study Week
• Service charges
• Tenants amendments
• Lecture 6 (Workshop 6)
• Alienation
• Lecture 7 (Workshop 7)
• Repairing covenants
• Landlords remedies

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Consolidation lectureReview of topics covered

• Lecture 8 (Workshop 8)
• Alterations
• User
• Insurance
• Lecture 9 (Workshop 9)
• Landlord and Tenant Act 1954

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Commercial LeasesPast Paper

• Assessment reflects focus of that years course.
• Question 1 Deleted, since asks about old law
• It was about the procedure for contracting out,
  based on a court order being obtained (now
  replaced by notice procedure)

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Commercial LeasesPast Paper

• Question 2 this is about Mr Winship acting as
  guarantor (cl 6 cite accordingly)
• note Liability Period (cl 1.20)
• he covenants to pay rent and perform covenants,
  if T defaults also will take new lease
  following disclaimer
• guarantee continues notwithstanding variation,
  giving time, etc (note general law)
• Amendments limit liability (e.g. none if T on
  an AGA), L to inform if T defaults, G to take
  part in rent review, T to assign to G if defaults

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Commercial LeasesPast Paper

• Question 3 rent review/user covenant
• V. restrictive user (Cl 1.26/Sched 3 para 3.1.1
  recruitment agency)
• Widened at review (Sched 2 para 1.1)- use as
  offices so unfair inflation of rent delete

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Commercial LeasesPast Paper

• Question 4 Cl 3.27 Ls release from liability
• Explain that, unlike T, L is not released
  automatically when sells interest L must apply
  to T (who has 4 weeks) ss.6, 8 1995 Act
• Clause means that if T objects must be reasonable
• Nb now L could use Avonridge clause?

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Commercial LeasesPast Paper

• Question 5 see workshop 7
• Question 6 deleted odd question
• Question 7 T not occupying for 12 months
• See Sched 3 para 3.1.2 T must not leave
  Premises unoccupied for more than 1 month without
  telling L, etc
• So T could be in breach discuss forfeiture

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Commercial LeasesConsolidation

• Know your way around syllabus
• Text
• Lectures and Workshops
• 7030 split (practicalMCQs)
• Calculator!
• MCQs
• Best answer

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Commercial LeasesConsolidation

• Go through advance documentation carefully
• Note relationship between provisions
• If asked about a provision, check (and report)
  its effect at rent review as well
• Clauses can be acceptable as well as unacceptable
  explain
• Refer to relevant clauses in answers

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Commercial LeasesConsolidation

• Key provisions of Acts
• Key cases
• Amendments
• Describe and explain
• Be commercial (Commercial and Business Aware!!)

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Commercial LeasesConsolidation

• Good Luck!!!