Will landlords be able to keep tenants on the hook and will leases continue even when tenants try to exercise a break right? In the current state of COVID-19 lockdown it could be more difficult for tenants to effectively break the term of a lease. Can a break right be validly exercised when a tenant … Continue Reading
Landlords take note, on the back of a recent case, you face an increased risk that tenants will challenge costs which they are responsible for in a lease. The case in question related to tenants’ challenge of insurance costs the Tribunal found in favour of the tenants, because the costs incurred were considered to be … Continue Reading
The case of No.1 West India Quay (Residential) Ltd v East Tower Apartments Ltd surprised the legal profession in 2016 when the court held that one bad reason for refusing consent to assign a lease effectively trumped two other good reasons, making the landlord’s refusal unreasonable. This decision provides some welcome pragmatism for landlords, residential … Continue Reading
By Edward Fairweather and Geoffrey Yussouf on Posted in Real Estate (UK)
It’s now less than one year to go until the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, commonly known as the MEES Regulations (minimum energy efficiency standards) come into effect. It is time to act if you haven’t already. The MEES Regulations (the Regulations) provide that: From 1 April 2018 landlords of … Continue Reading
Many commercial leases pass through to tenants a proportionate share of the landlord’s operating expenses and taxes for the property based on terms expressed in the lease. However, some landlords attempt to pass-through certain taxes that a tenant should not be expected to pay. A recent lease negotiation on behalf of an industrial client … Continue Reading
Recently, the Commercial Lease Law Insider advised landlords to avoid lease disputes by refusing to disclose the square footage of the space. The Landlord is well advised to follow a course of action that creates trust and fosters a mutually beneficial long term Landlord/Tenant relationship. https://www.commercialleaselawinsider.com/article/dont-put-square-footage-or-dimensions-lease. The size of the tenant’s space, expressed in square … Continue Reading
This post was also written by Marjorie Holmes. We have seen our first court ruling on competition law issues in a lease renewal case and this is news given the uncertainties the real estate world is facing from 6 April 2011 when competition law starts to apply in full to all real estate transactions. The … Continue Reading
This post was also written by Philip Olmer and Marjorie Holmes. From the time the UK joined the EEC, sections of UK industry have had to grapple with European competition law requirements on anti competitive and monopolistic behaviour. In terms of real estate, competition law had really only affected public sector procurement projects and certain monopolistic businesses … Continue Reading
This post was also written by Philip Olmer and Alex Heaton. Earlier this year we wrote about the impact of the Good Harvest case (Good Harvest Partnership LLP v Centaur Services Limited), both from the perspective of the landlord and of the tenant . Much of the commentary from the spring of this year was advising … Continue Reading
Break clauses are often incorporated into leases as a way for the tenant and occasionally, but less frequently, the landlord to maintain flexibility. In the present market they are often exercised by tenants. But exercising break rights and even the clauses can cause problems for the unwary tenant and great care must be taken to … Continue Reading
The ability of landlords to recover the costs of taking action against tenants for dilapidations or indeed any breach of covenant can be fraught. Far from being an automatic entitlement, it will depend upon the wording of the lease. Costs clauses in leases are many and varied – some rather better than others.… Continue Reading
In our previous posting 'Land Agreements come under the Competition Law Spotlight' when government consultation was underway, we reported on the likely impact of Competition Law applying to property deals. Whilst the issue arose out of the Competition Commission's market investigation into the supply of groceries, the changes that will apply from 6 April 2010 can affect any property agreements and will affect pre-existing agreements as well as anything to be entered into after 6 April. The commercial property world needs a new competition law mindset.… Continue Reading
This post was also written by Alex Heaton. A recent High Court decision on the liability of a guarantor is already causing investors concern. See our earlier posting . Here we consider the immediate implications for tenants and their guarantors, and, perhaps surprisingly, it is not all good news.… Continue Reading
In earlier postings on our environmental update blog we have introduced the UK's Carbon Reduction Commitment (Energy Efficiency) Scheme ("CRC"). From 1 April 2010 the CRC Regulations will apply. Property investors, even those who fall outside the CRC themselves, will have to supply their buyers with information on their buildings' carbon emissions. Lack of information could wreck the timetable for the deal.
This posting is designed to give you a brief idea of what you will need to disclose on the sale of an investment property once the CRC comes into force on 1st April this year.… Continue Reading
A decision by the High Court on the liability of a guarantor has just been published and is already causing concern and consternation in the market.… Continue Reading
This post was also written by Clare Whitaker. A decision by the High Court in December has strengthened the position of landlords who sometimes do not get paid during the administration even where the administrator is running the business from the property.… Continue Reading
Every Tenant’s worst nightmare is to miss a break date in a Lease of unwanted space! With rental demand currently weak, Landlords are likely to take any technical point they can to defeat a Tenant’s break notice and the rental void it would trigger. Often the decision to serve break notices is left until close … Continue Reading
This post was also written by Clare Whitaker. We have spent a lot of time thinking about landlords being affected by tenants going into administration over the last year. This posting is about a court case where the landlord’s administrators were trying to postpone the tenant’s application to Court for the grant of a new … Continue Reading
This post was also written by Lesley Davey. At the beginning of October the UK’s Competition Commission (CC) recommended to Government that introduces as “competition test” in planning decisions for large grocery stores. This follows on from the CC’s 2008 supermarkets’ investigation where it found that the planning regime helped larger supermarkets restrict competition in … Continue Reading
This week we have seen the headlines about the Focus DIY Corporate Voluntary Arrangement (CVA). It is reported that landlords have accepted the CVA and that will enable Focus to continue a significant part of the business and to retain a large number of jobs. Welcome news in many respects. CVAs can have a significant impact on … Continue Reading
Landlords/investors involved in selling or refinancing tenanted properties may need to carry out intensive environmental tests to satisfy the buyer/lender. Can landlords do these without the tenant’s co-operation, for which a tenant may seek a high price? Leases of commercial property reserve specific rights of entry for landlords. Can these be exercised to allow an … Continue Reading
The duty on investors and other owners to notify building insurers and keep them updated of all material circumstances should not be under-estimated. Failure to do this may result in cover being prejudiced. An unusual case that reached the Court of Appeal earlier this year made us think about whether property investors have got more … Continue Reading
Effecting a lease break can be vital to a tenant’s business plans. There are a vast number of reported cases on the question of whether notices have been validly served. There are many more property lawyers’ files where the operation of a break is challenged. Tenants need to take great care and seek legal advice … Continue Reading