Jennifer Slade

Commercial Leases Half Option LLB module

 Review – what have we covered and when?

 Past paper – 2003 Exam  General comments on assessment

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

 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

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

 Self Study Week  Service charges  Tenants amendments  Lecture 6 (Workshop 6)  Alienation  Lecture 7 (Workshop 7)  Repairing covenants  Landlord’s remedies

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

 Assessment reflects focus of that year’s 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)

 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

 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

 Question 4 – Cl 3.27 – L’s 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?

  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

 Know your way around syllabus  Text     Lectures and Workshops 70:30 split (practical:MCQ’s) Calculator!

MCQ’s  Best answer

 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

 Key provisions of Acts  Key cases  “Amendments”  Describe and explain  Be commercial (Commercial and Business Aware!!)

 Good Luck!!!