Commercial Leases

Key questions relating to the drafting and operation of open market rent review clauses, including:

• What is the effect on rent review of a rent-free period or inducement?
• What extent of premises is valued at review?

Most leases require tenants to pay rent quarterly in advance on the four quarter days in each year. However, during the credit crunch continues to bite, the British Retail Consortium has called upon commercial landlords to change the frequency of rental payments and to accept rents monthly in advance.

See http://www.brc.org.uk/rentmonthly/default.asp?content_id=1

What are the issues that the parties should consider when documenting any temporary concession? See below.

This document contains key points arising out of the drafting and exercise of break rights in leases.

Content includes:

• Preliminary check points for tenants.
• The effect of the break: rent liability, covenants liability, 1954 Act, rent review.
• The effect of the break on derivative interests.
• Withdrawing a break notice.
• Break rights and surrenders contrasted.
• Break pre-conditions: compliance with covenants; payment of rent; vacant possession.
• Expressing the break date.
• Time of the essence.
• Service of the notice.
• Removing register entries relating to the lease.

Cases covered:
Dun & Bradstreet Software Services (England) Ltd v Provident Mutual Life Assurance Association [1998] 2 EGLR 175.
Brown & Root Technology Ltd v Sun Alliance & London Assurance Co. Ltd [1997] 18 EG 123.
Olympia and York Canary Wharf v Oil Property Investments [1994] 2 EGLR 48.
Walsh v Lonsdale (1882) 21 Ch D 9.
Clun's Case (1613) 10 Co Rep 127a.
Ellis v Rowbotham [1900] 1QB 740 CA.
Garston v Scottish Widows Fund [1996] 23 EG 131.
Scholl Manufacturing Co. Ltd v Clifton (Slim-Line) Ltd [1967] Ch 41.
Barrett v Morgan (2000) 2 AC 264.
PW & Co. Ltd v Milton Gate Investments Ltd [2003] EWHC 1994 (Ch).
JIS (1974) Ltd v MCP Investments [2003] EWCA Civ 721.
Central Estates Ltd v Sec. State for the Environment [1997] 1 EGLR 239.
Bairstow Eves (Securities) Limited v Ripley [1992] 2 EGLR 47.
Fitzroy House Epworth Street (No 1) Ltd v The Financial Times Ltd [2006] EWCA Civ 329.
Commercial Union Life Assurance Co Ltd v Label Ink (2001) L & TR 29.
Legal & General Assurance Society Ltd v Expeditors International (UK) Ltd EWHC 1008 (Ch).
Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] 1 EGLR 57.
Peer Freeholds Ltd v Clean Wash International Ltd [2005] NPC 26.
WX Investments Ltd v Begg [2002] EWHC 925 (Ch).
Stephenson & Son v Orca Properties [1989] 2 EGLR 129.
The Prudential Assurance Company Ltd v Exel UK Ltd [2009] EWHC 1350 (Ch).
Linpac Mouldings Ltd v Aviva Life [2010] EWCA Civ 395.
Standard Life Investment Property Holdings Limited v W&J Linney Ltd [2010] EWHC 480 (Ch).
Orchard (Developments) Holdings plc v Reuters Ltd [2009] EWCA Civ 6
Hexstone Holdings Ltd v AHC Westlink Ltd [2010] EWHC 1280 (Ch).
NYK Logistics (UK) Ltd v Ibrend Estates BV [2011] EWCA Civ 683.
Quirkco Investments Ltd v Aspray Transport Ltd [2011] EWHC 3060 (Ch).

This document contains key points for consideration where a landlord is dealing with an application for for licence to assign or sub-let.

This document contains a guide to the contracting-out procedures of the 1954 Act introduced on June 1, 2004 by the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003.