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Aug, 2014

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  1. #1

    Default sample commercial lease agreement

    Hi

    I own a company and i also, as a private individual, own an office.

    As a box ticking exercise to keep the powers that be happy (banks, etc), i need a very simple lease agreement just so that the company can rent the office from me.

    Would anyone have a very basic FRI agreement they could send me? It will be for a let of under 7 years - otherwise would have to be registered lease i think - can the lease just be a simple letter in these circumstances or do i need something complex?

    thanks in advance

  2. #2
    Join Date
    Sep 2006
    Location
    Sheffield
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    Use the Law Society's Standard Business Lease: clear, user-friendly, and acceptable for most simple transactions.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  3. #3

    Default

    Hi Jeffrey
    do you have a link by any chance?

    I couldnt find it when i googled it. Ideally id want one that would have followed any rules in 2005. Wouldnt a simple letter suffice?

  4. #4
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
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    A simple letter is likely to lead to non-simple litigation later!
    Try this link: http://www.lawsociety.org.uk/newsand...?NEWSID=394507
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  5. #5

    Default

    Thanks for the link . Unfortuately i need it quickly and there isnt online ordering on the link.

    Would this cover everything - remember it is a lease from ME to my own wholly owned company so a bit of an academic exercise!

    Lease for [ADDRESS]
    This Commercial Lease Agreement (Lease) is entered into on [date] between [LANDLORD] (Landlord) and [TENANT] (Tenant). Landlord is the owner of the Building designated as [ADDRESS] (Leased Premises).
    Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from Landlord for the term, at the rental and upon the provisions set forth herein.
    THEREFORE, in consideration of the mutual promises contained herein it is agreed:
    Term.
    The Initial Term of the Lease shall begin on the [START DATE] and end on [END DATE]
    Tenant may renew the Lease for one extended term of five years Tenant shall exercise such renewal option, if at all, by providing notice to Landlord not less than ninety (90) days prior to the expiration of the Initial Term. The renewal term shall be at the rental set forth below and otherwise upon the same conditions and provisions as contained in this Lease.
    Rent.
    Tenant shall pay to Landlord during the Initial Term rent of £xxx per year on the first day of each calendar month in equal monthly installments or as otherwise agreed.
    Sublease and Assignment.
    The Tenant shall not sublease all or any part of the Leased Premises, or assign this Lease in whole or in part without Landlord's consent, such consent not to be unreasonably withheld or delayed.
    Repairs.
    During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the Leased Premises. Repairs shall include such items as routine repairs of floors, walls, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease.
    Alterations and Improvements.
    Tenant, at Tenant's expense, shall have the right, upon obtaining Landlord's consent, to remodel, redecorate, and make additions, improvements and replacements of and to all or any part of the Leased Premises from time to time as Tenant may deem desirable, provided the same are made in a workmanlike manner and utilizing good quality materials.
    Insurance.
    Tenant shall at its own expense maintain a policy or policies of comprehensive general liability insurance.
    Utilities.
    Tenant shall pay all charges for rates, water, sewer, gas, electricity, telephone and other services and utilities used by Tenant on the Leased Premises during the term of this Lease.
    Entry.
    Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises.
    Damage and Destruction.
    If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural defects, such damage or defects not being the result of any act of negligence by Tenant or by any of Tenant's agents, employees or invitees, that the same cannot be used for Tenant's purposes, then Tenant shall have the right within ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date of such damage. Tenant shall be relieved from paying rent and other charges during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited on the next ensuing payments, if any, but if no further payments are to be made, any such advance payments shall be refunded to Tenant.
    Default.
    In the event of a default made by Tenant in the payment of rent when due to Landlord, Tenant shall have fifteen (15) days after receipt of written notice thereof to cure such default. In the event of a default made by Tenant in any of the other covenants or conditions to be kept, observed and performed by Tenant, Tenant shall have thirty (30) days after receipt of written notice thereof to cure such default. In the event that the Tenant shall fail to cure any default within the time allowed under this paragraph, Landlord may declare the term of this Lease ended and terminated by giving Tenant written notice of such intention, and if possession of the Leased Premises is not surrendered, Landlord may reenter said premises.
    Quiet Possession.
    Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease.


    Notice.
    Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by first class post to:

    Landlord:

    Tenant


    Whole Agreement.
    This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties.

    IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written.
    _____________________________________ ______________________________________
    Landlord Tenant

  6. #6
    Join Date
    Oct 2008
    Posts
    393

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    [QUOTE=jeffrey;186282]A simple letter is likely to lead to non-simple litigation later!QUOTE]

    He is hardly likely to sue himself ......

  7. #7
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

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    Quote Originally Posted by Don Beech View Post
    He is hardly likely to sue himself ......
    No, but- as it's to satisfy the Banks- the Banks are likely to.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  8. #8
    Join Date
    Jun 2008
    Location
    Andalucía
    Posts
    9,405

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    Do not use this form. First it is an agreement for lease and not a lease. Secondly it is an agreement for a perpetually renewable lease and you do not want that.

    Either:

    (a) Take Jeffrey's advice and make sure the document is executed as a deed if it is for more than three years and in no circumstances try and draft your own option to renew clause;

    or,

    (b) get a solicitor or licensed conveyancer to draft a lease with an option to renew.

  9. #9

    Default

    I find it hard to believe that a Bank will be happy with the lease which you are intending to grant to yourself as a director of a Company. As at any time in the future, as landlord you can triple the rent, and as director you can agree to it. Also at any time you can liquidate the company, but presumably after all your OWN rent has been paid to you. Or is this a good accountancy scheme to assist with Tax planning

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