Category: Business Leases & Tenancies

Rent Rent is a key commercial term.  Generally, rents are fixed for the entire term in shorter leases.  In longer leases, it has been common for many years, to provide for rent reviews every five years. This reflects the statutory right of renewal of the lease, whereby there is a right to apply for rent […]

Overview In the absence of specific clauses, there is no obligation on a landlord to provide services or for a tenant to pay for them. However, in certain situations, it may be implied by necessity that certain common part services are provided, for example in a letting of part of a building.   It is desirable […]

Overview Generally, commercial lease terms are much longer than residential property leases and letting agreements and place more responsibilities on tenants.  There are no detailed regulations equivalent to those that apply to residential tenancies. Most longer commercial leases are structured so as to place the full repairing and insuring obligations on the tenant. In the […]

Tenant’s Rights to Lease Renewal Under Landlord and Tenant legislation, a tenant of a business property who has been in continuous occupation of the property for more than five years generally has a right to a new lease. Since late 2008, it has been possible to agree that this right will not apply (“contract out”).  […]

Transfer of the Lease by Tenant  “Assignment” is the process whereby a tenant transfers his interest in the property to another tenant and is usually thereby released from the lease obligations. If the lease says nothing, the tenant is free to assign. Most leases, therefore, contain restrictions on assignment. Nearly all leases of more than […]

Full Repairing and Insuring Leases In practice, leases for more than five years are usually “full repairing and insuring” (FRI) leases, with five yearly, upward only, rent reviews. The tenant pays the cost of insurance and service charges and has full repairing responsibility. This is on the basis that the tenant has a long-term interest […]

Circumstances of Termination Leases may terminate for a variety of reasons. A lease may terminate because the term of the lease has expired. A tenancy without a fixed term, typically, for successive periods may be terminated by notice by either party. The lease may terminate by reason of the non-payment of rent or breach of […]

Termination of Lease If possession of a leased property is not surrendered by the tenant on expiry of the term or its earlier termination, then the landlord may require a court order for possession.  A peaceful taking of possession may be possible in some cases.  However, the landlord must be confident that the tenancy or […]

Overview The Landlord and Tenant Acts provide important statutory rights for tenants. Many important rights apply where the lease relates to a building or buildings and land where the land is ancillary and subsidiary to the building (defined as a tenement). Other landlord and tenant rights apply to all leases and tenancies, whether in writing […]

Procedure In order to claim a new lease, a notice must be served within certain time limits by the tenant.  Where a lease ends by the expiry of its term (agreed period), notice must be served before termination or within three months of the landlord serving notice of termination.  Within that time limit, the tenant may […]

Improvements An improvement  means any addition to or alteration of the buildings comprised in the tenement and includes any structure erected on the tenement which is ancillary or subsidiary to those buildings and also includes the installation in the tenement of conduits for the supply of water, gas or electricity but does not include work […]

Compensation for Improvements Where a tenant leaves premises, because of termination of its tenancy,  it may be entitled to compensation for certain improvements made by it or its predecessor. No right of compensation applies where the tenant surrenders the lease or the lease is terminated by reason of the breach or the non-payment of rent. […]

General Repairing responsibilities are critical under a lease.  Generally, the longer the lease, the more likely the tenant will have greater repair responsibilities. A longer lease gives the tenant a longer term stake in the property. He may enjoy statutory rights of renewal, which may endure indefinitely. From the landlord’s perspective, the lease is in […]