10 Secrets On Considering A Lease

James Lancaster Secrets , , , ,
  1. Finalise a Heads of Terms agreement which includes the following issues:-
    1. Accurate and FULL Names and Addresses of all parties;
    2. Accurate and FULL Names and Addresses of all parties’ solicitors;
    3. Full details of the premise to be let;
    4. Start date – End date (provisional);
    5. Term;
    6. Rent & Rent Reviews;
    7. Right of renewal (Landlord & Tenant Act inclusion OR exclusion);
    8. Repairs;
    9. Sub Letting (Alienation);
    10. Service Charges;
    11. Insurance Charges;
    12. Use;
    13. Any important issues: – E.g. Planning, Parking, Guarantees etc.
  2. Each party to agree a list of tasks by a finalisation date;
  3. Agree plans and a schedule of condition of the building;
  4. Seek early approval of any signage or alterations;
  5. Request some documents at an early stage:-
    1. Land Registry Office copies and Plans (subject to relevant period of protection);
    2. Consent of any lender / mortgagee;
    3. Company searches;
    4. Credit searches;
    5. Relevant accounts;
    6. Environmental Protection Certificates;
    7. Asbestos reports;
  6. Tenant should calculate Stamp Duty Land Tax & VAT costs;
  7. If subject to break clause – pre agree wording of the Notice to Quit;
  8. On receipt of the Lease read in detail the sections which are listed in the Heads of Term;
  9. On reading each clause imagine the worst happens and jot down what you can do to remove – transfer – limit – insure against the risk or cost;
  10. Lease over 7 years must be registered with the Land Registry.