Drafting the lease (Procedural steps for the grant of a lease or underlease)- FS Flashcards
(11 cards)
What are the key parties identified when drafting a lease?
Clearly state the landlord and tenant (e.g. Cheshire Construction Ltd and Hammond Bank PLC).
How should the leased premises be defined?
By full address and plan reference (e.g., etched red on site plan).
How are easements addressed in leases?
State if any are granted or reserved. If none, explicitly confirm (as in “None” under LR10).
What are standard tenant repair obligations?
Maintain in good and substantial repair, keep clean, replace broken glass.
Exception: No liability for disrepair from insured risks.
Who insures the property and who pays?
Landlord insures; tenant reimburses via insurance rent.
How is permitted use defined in a lease?
Set under Use Class (e.g., Class E). Allows broad use (e.g., retail, offices) but not unrestricted use (e.g., no nightclubs without planning consent).
Can a tenant sublet or assign the property?
Only with the landlord’s consent, which must not be unreasonably withheld if not fully prohibited by the lease.
What are the tenant’s obligations at lease end?
- Return with vacant possession
- In the required state of repair
- Remove fixtures and make good damage caused by their removal
What enforcement rights does the landlord have?
- Landlord may enter and inspect the property
- Serve notice on tenant to carry out repairs
- If not complied with, landlord may do the repairs and charge the tenant
How is rent set and reviewed?
- Rent set at a specified annual figure (e.g., £1 million)
- Rent review clause sets rent to the higher of:
- The existing rent
- The current market rent
- Review only increases rent (upward-only clause)
How must a lease be executed?
As a deed, signed by appropriate signatories (e.g., 2 directors or 1 director and secretary).
