Parties whose approval must be obtained under an agreement should ensure the agreement expressly gives them time to decide whether to give approval, and that the time given is sufficient, or risk approval being deemed given after a reasonable time, a recent ruling makes clear.
Landlords proposing to oppose a business tenant’s renewal of their lease because they intend to do substantial works on the premises, should ensure their motive for doing the work does not contradict their claim that they genuinely intend to carry out the works.
Landlords planning to exercise a break option should consider whether any tenants or sub-tenants may become entitled to serve notice requesting a new tenancy, even if the new tenancy's starting date will be before the contractual expiry date under their lease, following a recent ruling.
Businesses negotiating termination clauses in contracts should avoid imposing financial sanctions on breach of contract which are to apply retrospectively, or risk the clause being found to be a penalty and therefore unenforceable, following a recent ruling.
Landlords should be aware that the cost of works that improve their properties but do not amount to repairs cannot be added to their tenants' service charges, even if the works will reduce the future costs of running the properties, a Tribunal ruling makes clear.
Landlords granting a right to occupy land for even short periods should ensure that the process for applying for the right, and its terms and any conditions attached, do not amount to conduct indicating the grant of a tenancy rather than a mere licence.
Tenants required to give vacant possession when exercising a break clause should ensure any partitioning is removed, or has genuinely become part of the structure of the building. Otherwise they risk the break being ineffective because they have not given vacant possession, following a recent ruling.
Landlords who give multiple reasons for refusing to consent to an assignment of a lease should ensure all the reasons are reasonable, or that there is evidence that each reason is separate from the others, or they risk the refusal being treated as unreasonable.
Too many CVAs are failing to protect those owed money by struggling businesses
Landlords considering forfeiture of a lease should consider the possibility the tenant could apply for relief from forfeiture, even if their application is made many months after forfeiture has taken place, following a recent High Court decision.
Buying freehold or long leasehold business premises gives you control over one of your major financial investments. As an owner-occupier, you can stay in the premises for as long as you wish. If need be, you can raise money through selling, taking out an additional mortgage or letting part of the premises.
Choosing the right premises is a major decision for many businesses. The right location can be critical for attracting customers and employees, while the premises themselves can significantly influence productivity.
If you expect your business to grow quickly, it can be difficult to get suitable premises for your needs. Though you may not need much space now, the situation could be very different in 12 or 18 months' time.
As the needs of your business change, you may wish to get out of the lease on your premises. This is seldom easy. A lease is a legal contract, and your landlord can take you to court if you break it.
Moving into licensed property is easier, quicker and cheaper than taking on a lease or buying a freehold property. Licensed properties are often ideal for start-ups and smaller businesses.
Rent reviews are a mechanism for adjusting a tenant's rent to the current market level. Similarly, the revaluation of rating assessments adjusts the rates an occupier pays, bringing it into line with rental values.
Compared with purchasing premises, renting is flexible and ties up a minimal amount of capital. Most businesses rent their premises, either through a lease or a licence.
The ICAEW Library & Information Service provides access to a range of articles in full text from leading business, finance and management journals. This resource is available to ICAEW members, ACA students and other entitled users.
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Opinion: Talk of land price rises is 'hogwash'
Stephen Carr reports on a downward trend in farmland prices. Most likely causes are the potential for a loss of access to the EU's internal food market, adverse trade tariffs on UK food exports, and a decreased level of UK farm subsidy once Britain has left the EU. But, as he explains, there are other less obvious factors.
Keep the tourists coming
Global tourism continues to have a powerful economic impact on US outlet shopping centres, which use a variety of marketing techniques and incentives to attract big-spending international shoppers.
REIT industry has lackluster board diversity
New report finds the real estate investment trust (REIT) industry is lagging behind in improving gender diversity on UK and US boards.
Invest in real estate? It's easy
The article reviews five real estate investment trusts which offer above-average yields, growth prospects and reasonable valuations: Gaming and Leisure Properties, Host Hotels & Resorts, Realty Income, Sovran Self Storage, and STAG Industrial.
Land prices to fall as farmers wait for certainty
The article explains why land values are expected to fall over the next 12 months and how the fall in sterling can be beneficial to agricultural exporters.
Head for heights?
Guy Anker discusses high-loan-to-value (LTV) mortgages, the falling frequency of lending above 90 percent LTV, the repercussions of the scheduled closure of the Help to Buy guarantee scheme, and the Brexit effect on mortgage rates.
CorEnergy Infrastructure Trust, Inc. (NYSE:CORR)
Interview with David Schulte, the president and chief executive officer of CorEnergy Infrastructure Trust Inc., offering an overview of the company that became a real estate investment trust in 2011.
CorEnergy Infrastructure Trust, Inc. (NYSE:CORR)
Interview with David Schulte, the president and chief executive officer (CEO) of CorEnergy Infrastructure Trust Inc. offering an overview of the company that became a real estate investment trust in 2011.
The future of insulation
The article discusses the repercussions of the British Government's changes to the Green Agenda, the Green Deal and the ECO scheme on the insulation sector.
After years of recession, Spain has enjoyed a fast growing recovery in 2015 with a forecast of 3.1 percent growth by the end of 2015.
British Property Federation (BPF)
The professional body representing the UK property industry provides information for commercial landlords and investors, including the BPF IPD Annual Lease Review report.
Small business property hub (RICS)
Guidance from the Royal Institution of Chartered Surveyors (RICS) covering a wide range of topics, including planning permission, business rates and valuations.
Code for Leasing Business Premises
The Code for Leasing Business Premises in England and Wales 2007 represents owners and occupiers, particularly in small business. Resources on the website include an Occupier Guide, Model Heads of Terms and supplemental briefing notes on environmental good practice.
An independent website providing businesses with free information, guides, calculators and checklists for a successful office move.
A non-departmental public body (NDPB) providing free advice on the law affecting residential leasehold property in England and Wales. Includes a practitioners directory and guides on the core issues that affect leasehold property, written by professional legal advisers.
Renting a business property: tenant responsibilities
GOV.UK government guidance on the health and safety responsibilities of companies renting business properties.
Small Business Retail Lease
An example short-term lease for high street retail property produced by the Royal Institution of Chartered Surveyors (RICS). A sample Heads of Terms document and guides for tenants and advisors are also available.
SME guide to energy efficiency
Advice from the Department of Energy and Climate Change (DECC) to help your business become more energy efficient. Topics covered include heating, lighting, office equipment and production equipment, with case studies from businesses which used these methods to save money.
Articles and books in the Library collection
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Negotiating a tax-efficient new lease
Tips and Advice - Tax, 23 January 2014. p.3
Looks at some tax-efficient options for tenants wanting to renew or sign a new commercial property lease.
(College of Law, 2016)
A comprehensive and systematic guide to the principles of landlord and tenant law.
Capital allowances for business property: a guide for owners
The aim of this book is to help proprietors and their managers to understand the key points they need to know about capital allowances. Reflects the changes introduced in 2012 and those that are expected to apply from 2014.
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