Grant Of Lease Procedure Flashcards
Pre exchange and completion steps for grant of lease
1) LL draft lease
2) LL deduce title - eg official copies
3) T investigate title - check LL has title to grant lease and for any freehold covenants (as they will bind T)
4) T carry out pre- contract searches - same as for FH transaction, eg local authority, drainage, desktop
5) T send pre-contract enquiries to LL
- CPSE1 and CPSE3. LL to respond
6) LL prepare original and counterpart lease (send counterpart to T)
7) LL send completion statement to T
8) T carry out pre- completion searches
Pre completion searches required for grant of lease
OS1 - lease of whole
oS2 - lease of part
OS3 - lease not registrable (7yrs or less)
What is a completion statement
From LL to T setting out £ due on completion.
Rent will be apportioned if part way through a quarter
Forms used for pre contract enquiries in grant of a lease
CPSE1 and CPSE3 (specific to grant of lease)
What if client does not want pre contract searches in grant of lease procedure
Explain consequences
Who drafts the lease
LL
When is agreement for lease/exchange required
When parties want to commit to lease but arent ready to exchange
How to complete (in grant of lease procedure)
Solicitors agree to complete via phone and execute leases
Post completion steps in grant of lease
Pay SDLT if necessary
Register lease if necessary
When to register lease
If over 7 years
How to register lease
Send form AP1 to land registry along with
- copy of lease
- LL’s lender consent (if applicable)
- SDLT5
SDLT rates on commercial leases
0- £150k - 0
£150,001 - £5m - 1% of net present value
£5m + - 2% of net present value