HM Land Registry Prescribed Clauses LR1. Date of the lease [date] LR2. Title number(s) LR2.1 Landlord's title number(s) [title number(s) out of which this Lease is granted (but leave blank if the Landlord’s title is unregistered)] LR2.2 Other title numbers [existing title number(s) against which entries of matters referred to in LR9, LR10, LR11 and LR13 are to be made] LR3. Parties to this lease Landlord [name of Landlord] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] Tenant [name of Tenant] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address] Other parties [ Guarantor [name of Guarantor] [of OR incorporated in England and Wales (company registration number [number]) whose registered office is at] [address]] LR4. Property In the case of a conflict between this clause and the remainder of this Lease then, for the purposes of registration, this clause shall prevail. The property described in Part 1 of Schedule 1.This Lease contains provisions relating to the creation or passing of easements—see clause 3.1, clause 3.3 and Part 2 of Schedule 1. LR5. Prescribed statements etc LR5.1 Statements prescribed under rules

This Practice Note explains what is meant by a ‘lease re-gear’. It looks at key triggers for lease re-gears and the commercial drivers (for both landlords and tenants). It also gives examples of common lease terms that are renegotiated on a lease re-gear and how a lease re-gear may be structured. What is a lease re-gear? A ‘lease re-gear’ is a commercial term referring to the renegotiation of lease terms during the term of a lease. The terms ‘lease variation’ and ‘lease re-gear’ are often used interchangeably, but lease re-gears do not always involve a formal lease variation. A formal lease variation is only one mechanism that might be used to bring about a lease re-gear. Other transactions are often necessary to give effect to the new commercial agreement. Depending on the new terms agreed between the landlord and the tenant, a re-gear can involve: • a deed of variation • a surrender and re-grant (eg surrender of the existing lease by deed or operation of law and the grant of a new lease on the revised terms)

A business lease renewal, pursuant to LTA 1954.

In respect of a commercial lease renewal, it is commonly the case that the landlord and the tenant each pay their own costs associated with the renewal. Prior to 1958 it had been the norm that the tenant would pay the landlord’s costs, but this practice

What is a lease surrender? A lease surrender is a mutual agreement between the landlord and the tenant to bring the lease to an end before the expiry of the term and in a manner not contemplated by the lease (eg by exercising a break option, etc). A surrender may be express or implied: • an express surrender is achieved formally, usually by deed, although this is not always necessary (see: Express surrender below) • a surrender by operation of law (also known as an implied surrender) occurs when the landlord and tenant by their unequivocal conduct demonstrate that they no longer regard the lease as continuing between them (see: Surrender by operation of law (Implied surrender) below) A surrender is therefore often a negotiated agreement in circumstances where the tenant is otherwise not able to divest itself of the lease. It will often depend on the goodwill between the parties and a mutual desire to determine the lease prematurely. For some properties (often shopping centres), landlords include a provision in the lease requiring the tenant to offer to

Property analysis: This case concerned the interpretation of a management company’s obligations in the transfers of freehold houses which were sold as part of the redevelopment of a former school. The Court of Appeal held that the terms of the leases of flats in the former school buildings (which had been entered into after the freehold transfers) were not admissible in construing the transfers. Written by Rebecca Sage, Pupil barrister at Landmark Chambers.

Application by party to lease for variation Any party to a long lease of a flat can make an application either to the First-tier Tribunal (Property Chamber) (FTT), where the property is in England, or to a leasehold valuation tribunal (LVT), where the property is in Wales, for an order to vary the lease on the grounds that it fails to make satisfactory provision for one or more of the following: • the repair or maintenance of: ◦ the flat ◦ the building containing the flat, or ◦ any land or building let to the tenant under the lease or over which rights are granted • the insurance of the building containing the flat or of any land or building mentioned above • the repair or maintenance of any installations, whether or not in the same building as the flat, reasonably necessary to provide a reasonable standard of accommodation (including the safety, security and condition of the flat and any common parts) • the provision or

An implied surrender and re-grant taking effect by operation of law can occur if an agreed variation of the terms of a lease is so fundamental that the law regards it as being wholly inconsistent with the original lease. The original lease is deemed to have been surrendered and a new lease is deemed to have been granted between the parties on the terms of the lease as varied. An inadvertent surrender and re-grant by operation of law can have significant adverse consequences for both the landlord and the tenant—see ‘Consequences of inadvertent surrender and re-grant’ below. This Practice Note covers: • variations to lease terms that do, or do not, trigger surrender and re-grant by operation of law, including: ◦ ‘increasing’ the demise or ‘extending’ the term ◦ ‘decreasing’ the demise or term ◦ increasing or decreasing the rent • consequences of an inadvertent surrender and re-grant • how to ‘extend’ the term or increase the demise without triggering a deemed surrender and re-grant, and • how to deal with changes

A point-to-point communication channel or circuit that is committed by the network operator to the exclusive use of an individual subscriber. Under national law, leased lines may or may not be permitted to interconnect with the public switched network.

An estate in land that is limited by time.

This Practice Note provides a broad summary of the provisions of the Leasehold and Freehold Reform Act 2024 (LFRA 2024), much of which is not yet in force. The Act: • introduces a ban on the grant or assignment of certain long residential leases of houses • makes significant amendments to a variety of aspects of the leasehold enfranchisement and lease extension procedures and provisions (including the price payable) • provides a right for long leaseholders to replace their rent with a peppercorn rent (on payment of a premium) • introduces a suite of changes to the residential service charge regime, regulation of estate management, and leasehold and estate management redress schemes • clarifies the uses of estate rentcharges and regulates the remedies for rentcharge arrears, and • amends various provisions of the Building Safety Act 2022 (BSA 2022), including defining ‘relevant steps’ which a landlord must take to remedy ‘relevant defects’ Commencement LFRA 2024 is coming into force in stages. Check each section below for details of whether provisions are in

The acquisition of the freehold by a leaseholder.