Business Leases & Tenancies

Termination of Lease

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.… Read the rest

Termination & Remedies

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. … Read the rest

Service Charges

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. … Read the rest

Repairs

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.… Read the rest

Rent & Term Overview

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.… Read the rest

Rent & Financial Obligations

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.… Read the rest

Renewal & Compensation Overview

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.… Read the rest

Improvements

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 consisting only of repairing, painting and decorating, or any of them.… Read the rest

Full Repair & Insurance

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.… Read the rest

Compensation

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.… Read the rest