During the recent session from our ‘General Counsel Know How’ series, commercial property partner Helen Lucas and consultant Michael Whitaker led an interesting discussion on hotly contested lease terms that should be properly considered even before the landlords and tenants sign heads of terms.
During the recent session from our ‘General Counsel Know How’ series, commercial property partner Helen Lucas and consultant Michael Whitaker led an interesting discussion on hotly contested lease terms that should be properly considered even before the landlords and tenants sign heads of terms.
The Law Commission of England and Wales has recently announced its plans to review the workings of the right to renew business tenancies, as outlined in Part 2 of the Landlord and Tenant Act 1954. This legislation provides a framework that entitles qualifying tenants protection when it comes to renewing their business tenancies known as “security of tenure”, however, it was created following the Second World War, since which time the property landscape and the commercial needs of landlords and tenants have notably evolved.
The onus is on the buyer to identify any issues with the property that they are seeking to acquire, before proceeding with the acquisition. If the buyer fails to do so, then – subject to very limited exceptions – the buyer will take on responsibility for any related liabilities post-acquisition.
The government’s 2020 Energy White Paper, Powering our net zero future, has further proposed that landlords will be required to show that all let commercial buildings have an EPC rating of ‘C’ by 1 April 2027, and an EPC rating of ‘B’ by 1 April 2030.
When you enter into your commercial lease, you will be signing up to various obligations for repair, maintenance, and decorations during the term. Some of these can be extremely onerous and many tenants will overlook these obligations during the term and only start to think about them once the lease is coming to an end or if they are thinking of leaving at a break point. By this time the liabilities could have grown and leave you having to deal with a large, unexpected amount to pay at the end of your lease.
What The Commercial Rent law means for tenants in arrears
This brief update has been prepared for tenants who find themselves in arrears as The Commercial Rent (Coronavirus) Bill (the “Bill”), currently making its way through Parliament, will change the current situation regarding pandemic arrears and the ban on certain landlord remedies.
The Brook began life as a plant-based restaurant. They now make a range of innovative, premium dishes that sells nationwide both online and in retail.
We are delighted to Welcome Michael Whitaker to the Ignition Team. Michael is joining as a Property Consultant and his wealth of experience makes him a fantastic addition to our highly skilled property team
Gravity is a co-living and residential operator focused on community and flexibility.
