PLP SGS 9- Summary Notes

CONTENTS OF A LEASE 3 ADVISING ON A LEASE When advising on the terms of the lease, do not look at the lease in isolation → look at the freehold title as there may be freehold covenants which affect the use and enjoyment of the property. Consider: lease, the law, landlords title, and Local Authority consents TERM AND BREAK CLAUSE Term - look at the definition of ‘Term’ in the least to calculate the contractual expiry date e.g. ‘from and including xx’ or ‘from xx’ Break clause - option to end the lease before its contractual expiry date. Will often specify conditions for the operation of the break such as: • Tenant must have paid all the rent • Tenant must have performed its covenants Code for Leasing Business Premises (the ‘Code’) Recommendation 2 of Part 3 of the Code - suggests that, unless the parties agreed stricter conditions at the heads of term stage, the only preconditions to tenants exercising any brake clauses should be that they are up-to-date with the annual rent, the tenant giving up occupation and leaving no subtenants or other occupiers SERVICE CHARGE Lease of whole → tenant is likely to assume responsibility for repair of the whole of the building but may still have to contribute to some shared facilities 1 of