RE12
Grant of a lease and leasehold management
Exceptions, reservations and rights in a lease of part
Where the property is PART of a building, care must be taken to properly identify and describe:
The RIGHTS which are to be granted to the tenant to enable proper use and enjoyment of the property and
The EXCEPTIONS made and the RIGHTS RESERVED to the landlord to retain control over the remainder of
the building
Exceptions and Reservations are rights over leasehold property that benefits the landlord.
They may, for instance:
o Enable the landlord to develop neighbouring property without interference.
o Assist the landlord in ensuring the tenant complies with the terms of the lease.
EXCEPTION: something that ALREADY EXISTS and would be part of the lease, but is excluded from the
grant (for example, mineral rights). I.e. the landlord retains this right.
RESERVATION: something that is NOT IN EXISTENCE at the date of the grant but which arises out of the
demise e.g. a right of entry for the landlord.
Common exceptions and reservations
Reserve all Rights of → This would prevent the Tenant from acquiring a prescriptive Right of Light and hence enable
Light the Landlord to deal with his neighbouring land free from interference of such a right.
Reserve all Rights of → This would ensure the landlord the Landlord to deal with his neighbouring land free from
Support and interference of such a right.
Protection
Reservations of → Where leases of other parts of the building or estate have granted rights over any part of their
Other Rights Already let property to the landlord, reservations need to be made so that the landlord can still
Granted exercise these rights.
Rights in relation to → Landlord’s ability to carry out works on neighbouring property are reserved in appropriate
works and cases. These can be important for a landlord but a tenant will be concerned by the potential for
development disruption to its use and occupation of the demised premises
Reservation of the → Rights in relation to the landlord's ability to carry out works on neighbouring property are
landlord’s rights to reserved in appropriate cases. These can be important for a landlord but a tenant will be
develop adjoining concerned by the potential for disruption to its use and occupation of the demised premises.
land
Rights of Entry → The landlord will usually reserve a right to enter onto the property for a broad range of
purposes at any reasonable time and after reasonable notice.
→ This provides the landlord with an ability to deal with neighbouring land he owns.
o Tenant may wish to retain some control/supervision of the exercise of these rights (e.g. by
requiring that any works must be completed within a reasonable time scale)
o Tenant may wish to narrow the exclusion of liability and require that those exercising the
rights of entry act with due care
o In particular may wish to narrow the exclusion of liability so that there is liability for
damage to the tenant’s belongings, whether or not negligence is involved
1
Grant of a lease and leasehold management
Exceptions, reservations and rights in a lease of part
Where the property is PART of a building, care must be taken to properly identify and describe:
The RIGHTS which are to be granted to the tenant to enable proper use and enjoyment of the property and
The EXCEPTIONS made and the RIGHTS RESERVED to the landlord to retain control over the remainder of
the building
Exceptions and Reservations are rights over leasehold property that benefits the landlord.
They may, for instance:
o Enable the landlord to develop neighbouring property without interference.
o Assist the landlord in ensuring the tenant complies with the terms of the lease.
EXCEPTION: something that ALREADY EXISTS and would be part of the lease, but is excluded from the
grant (for example, mineral rights). I.e. the landlord retains this right.
RESERVATION: something that is NOT IN EXISTENCE at the date of the grant but which arises out of the
demise e.g. a right of entry for the landlord.
Common exceptions and reservations
Reserve all Rights of → This would prevent the Tenant from acquiring a prescriptive Right of Light and hence enable
Light the Landlord to deal with his neighbouring land free from interference of such a right.
Reserve all Rights of → This would ensure the landlord the Landlord to deal with his neighbouring land free from
Support and interference of such a right.
Protection
Reservations of → Where leases of other parts of the building or estate have granted rights over any part of their
Other Rights Already let property to the landlord, reservations need to be made so that the landlord can still
Granted exercise these rights.
Rights in relation to → Landlord’s ability to carry out works on neighbouring property are reserved in appropriate
works and cases. These can be important for a landlord but a tenant will be concerned by the potential for
development disruption to its use and occupation of the demised premises
Reservation of the → Rights in relation to the landlord's ability to carry out works on neighbouring property are
landlord’s rights to reserved in appropriate cases. These can be important for a landlord but a tenant will be
develop adjoining concerned by the potential for disruption to its use and occupation of the demised premises.
land
Rights of Entry → The landlord will usually reserve a right to enter onto the property for a broad range of
purposes at any reasonable time and after reasonable notice.
→ This provides the landlord with an ability to deal with neighbouring land he owns.
o Tenant may wish to retain some control/supervision of the exercise of these rights (e.g. by
requiring that any works must be completed within a reasonable time scale)
o Tenant may wish to narrow the exclusion of liability and require that those exercising the
rights of entry act with due care
o In particular may wish to narrow the exclusion of liability so that there is liability for
damage to the tenant’s belongings, whether or not negligence is involved
1
