Leasing property

Leasing property guidance:

Pre-conditions—planning permission If the pre-letting agreement (the PLA) is conditional upon one of the parties (usually the landlord) obtaining planning permission, the...

Practice Note

The landlord's works The pre-letting agreement ('the PLA') will set out the landlord's obligations to the tenant regarding the landlord's works. These will vary depending...

Practice Note

Assignment by the tenant The more important a particular tenant is to the viability of a particular development, the more likely that the landlord will insist the tenant...

Practice Note

An inherent defect may become apparent several years after the tenant has taken over the property. This may be long after: • the building contractor’s liability under the...

Practice Note

Collateral warranties The typical terms of a collateral warranty provided to a tenant by a consultant, contractor or sub-contractor deal with: • compliance with...

Practice Note

Rent commencement date Agreements for lease generally specify that the tenant is obliged to take the lease on, or within a short period after, certification of practical...

Practice Note

A developer has a far greater prospect of securing both: • development finance from a funder to fund the costs of the development works, and • a commitment from an...

Practice Note

Defects Defective workmanship is a feature of virtually every construction project. Very minor defects will be dealt with by a snagging list (see: Snagging list) but...

Practice Note

An agreement for lease with development obligations can give rise to a variety of issues, eg the right to claim an extension of time, measurement, whether...

Practice Note

Certification of practical completion under the agreement for lease (usually prompted by certification of practical completion under the building contract) triggers the...

Practice Note

Delay in completion of the developer’s works can be of far greater concern to a tenant than, eg whether the works are in accordance with the specification or the...

Practice Note

The tenant will appoint its own surveyor and other consultants to monitor the construction works and to represent the tenant’s interest in relation to various...

Practice Note

Insuring the developer’s works As between the developer and the tenant, the developer should covenant: • to ensure that the developer’s works are insured against usual...

Practice Note

If the developer fails to achieve practical completion by the target date set out in the agreement for lease, the tenant will expect to receive damages for the lost...

Practice Note

In some cases, a developer and a tenant agree that the rent under the occupational lease will be a specified figure. However, in many other cases, the annual rent is...

Practice Note

As-built drawings, health and safety file, etc In the context of a lease of an entire building, the tenant is likely to have both contractual and statutory liability for...

Practice Note