Grant Of Lease Procedure Flashcards

1
Q

Pre exchange and completion steps for grant of lease

A

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

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2
Q

Pre completion searches required for grant of lease

A

OS1 - lease of whole
oS2 - lease of part
OS3 - lease not registrable (7yrs or less)

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3
Q

What is a completion statement

A

From LL to T setting out £ due on completion.

Rent will be apportioned if part way through a quarter

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4
Q

Forms used for pre contract enquiries in grant of a lease

A

CPSE1 and CPSE3 (specific to grant of lease)

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5
Q

What if client does not want pre contract searches in grant of lease procedure

A

Explain consequences

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6
Q

Who drafts the lease

A

LL

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7
Q

When is agreement for lease/exchange required

A

When parties want to commit to lease but arent ready to exchange

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8
Q

How to complete (in grant of lease procedure)

A

Solicitors agree to complete via phone and execute leases

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9
Q

Post completion steps in grant of lease

A

Pay SDLT if necessary
Register lease if necessary

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10
Q

When to register lease

A

If over 7 years

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11
Q

How to register lease

A

Send form AP1 to land registry along with
- copy of lease
- LL’s lender consent (if applicable)
- SDLT5

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12
Q

SDLT rates on commercial leases

A

0- £150k - 0
£150,001 - £5m - 1% of net present value
£5m + - 2% of net present value

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