Commercial Tenancies
Business leases of commercial premises normally give the teant the right to assign (sell) the lease conditional upon having the consent of the landlord, not to be unreasonably withheld. The process involves a Licence to Assign and the Assignment document itself.
This is a clause in a lease agreement giving the landlord or tenant or both the right, under specified circumstances, to terminate the lease agreement, before its normal termination date.
It is important that landlords and tenants are aware of the legal basis of business tenancies and the legislation which gives tenants rights relating to security of tenure and compensation if a business tenancy is not renewed. This section gives an overview of the principles and practical processes involved in creating and managing business tenancies.
Dilapidations are a deterioration in the condition of a commercial property which is a breach of covenant to repair contained in a lease. It is important that landlords and tenants are aware of the implications of dilapidations clauses as the liability to repair can have serious financial implications.
When a business tenant is in rent arrears or is in serious breach of the lease terms, then the commercial landlord will in most cases have the right to forfeit - the right to summarily end the tenancy. The landlord must however comply with section 146(1) of the Law of Property Act 1925.
A lease is a formal legal document entered into between a Landlord and a Tenant to create a tenancy. The lease reflects the terms of negotiations and agreement between the parties, identifies the the demise (land/buildings) by means of a plan, and records the condition by means of a schedule of condition. In practice agreements for less than 3 years are normally referred to as Tenancy Agremements, wheres letting in excess of three years must be signed and witnessed as a deed.
The Landlord and Tenant Act 1954 Part 2 is an important piece of legislation in England and Wales and is the main legislation in England and Wales affecting business tenancies. It is important that landlords and tenants of business premises have a working knowledge of the Act. This section gives a brief overview.
Never rely totally on this information which relates primarily to England & Wales. Before taking action or not, seek expert advice with the full facts of your case and all documents to hand.
