Business Leasing Code for Landlords & Tenants
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1 Business Leasing Code for Landlords & Tenants
2 The objective of this code is to create a document which is clear, concise, user friendly and authoritative for both parties.
3
4 1. PROPERTY DEMISED
5 Site Boundaries
6 Site Boundaries Rights of Way, Easements etc.
7 Site Boundaries Rights of Way, Easements etc. Floor Plans, method of measurement
8 Site Boundaries Rights of Way, Easements etc. Floor Plans, method of measurement
9 Site Boundaries Rights of Way, Easements etc. Floor Plans, method of measurement Ancillary space, parking etc.
10 2. LEASE NEGOTIATIONS
11 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal
12 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent
13 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights
14 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights Repairs
15 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights Repairs Alterations/Permitted Use
16 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights Repairs Alterations/Permitted Use Sub-letting/Assignment restrictions
17 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights Repairs Alterations/Permitted Use Sub-letting/Assignment restrictions Vat
18 2. LEASE NEGOTIATIONS Opening offer or seek leasing proposal stating Rent Lease duration, break options, renewal rights Repairs Alterations/Permitted Use Sub-letting/Assignment restrictions Vat Concluded by agreeing the Heads of Terms
19 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE
20 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit
21 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit
22 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention
23 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention Guarantee Personal/Directors Guarantee
24 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention Guarantee Personal/Directors Guarantee Parent Company Guarantee
25 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention Guarantee Personal/Directors Guarantee Parent Company Guarantee Counsels Opinion for overseas entity
26 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention Guarantee Personal/Directors Guarantee Parent Company Guarantee Counsels Opinion for overseas entity Duration?
27 3. FINANCIAL MATTERS, RENT DEPOSITS & GUARANTEE Rent/Security Deposit Standard Deposit Period of Retention Guarantee Personal/Directors Guarantee Parent Company Guarantee Counsels Opinion for overseas entity Duration? Invalidation?
28 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS
29 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS Understand the business implications of the proposed lease
30 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS Understand the business implications of the proposed lease Duration
31 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS Understand the business implications of the proposed lease Duration Early termination options/break clause
32 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS Understand the business implications of the proposed lease Duration Early termination options/break clause Renewal rights
33 4. LENGTH OF LEASE TERM, BREAK CLAUSE & RENEWAL RIGHTS Understand the business implications of the proposed lease Duration Early termination options/break clause Renewal rights Waiver of renewal rights
34 5. RENT REVIEWS Lease Rent Review Clauses
35 5. RENT REVIEWS Lease Rent Review Clauses Periodic rent review pattern
36 5. RENT REVIEWS Lease Rent Review Clauses Periodic rent review pattern Initiation and time restrictions
37 5. RENT REVIEWS Lease Rent Review Clauses Periodic rent review pattern Initiation and time restrictions Method to determine revised rent
38 5. RENT REVIEWS Lease Rent Review Clauses Periodic rent review pattern Initiation and time restrictions Method to determine revised rent Third party adjudication
39 5. RENT REVIEWS Lease Rent Review Clauses Periodic rent review pattern Initiation and time restrictions Method to determine revised rent Third party adjudication Entitlement to interest applied?
40 6. ASSIGNMENT AND SUB-LETTING Consent not to be unreasonably withheld or delayed
41 6. ASSIGNMENT AND SUB-LETTING Consent not to be unreasonably withheld or delayed Financial standing implications for assignee
42 6. ASSIGNMENT AND SUB-LETTING Consent not to be unreasonably withheld or delayed Financial standing implications for assignee Rent restrictions in case of sub-letting
43 6. ASSIGNMENT AND SUB-LETTING Consent not to be unreasonably withheld or delayed Financial standing implications for assignee Rent restrictions in case of sub-letting Sub-letting restrictions on part of demise
44 7. SERVICE CHARGES
45 7. SERVICE CHARGES Establish services included
46 7. SERVICE CHARGES Establish services included Legacy issues & sinking fund provision
47 7. SERVICE CHARGES Establish services included Legacy issues & sinking fund provision Repairs /other major expenditure pending
48 7. SERVICE CHARGES Establish services included Legacy issues & sinking fund provision Repairs /other major expenditure pending SCSI Code of Practice Service Charges
49 8. REPAIRS
50 8. REPAIRS Obligation should be appropriate to lease duration
51 8. REPAIRS Obligation should be appropriate to lease duration Schedule of Condition at lease commencement
52 8. REPAIRS Obligation should be appropriate to lease duration Schedule of Condition at lease commencement Indemnify against item of concern
53 8. REPAIRS Obligation should be appropriate to lease duration Schedule of Condition at lease commencement Indemnify against item of concern Implications for lease assignment/early termination
54 9. ALTERATIONS & PERMITTED USE
55 9. ALTERATIONS & PERMITTED USE No more restrictive than to protect asset value
56 9. ALTERATIONS & PERMITTED USE No more restrictive than to protect asset value Lease conditions regarding structural alterations
57 9. ALTERATIONS & PERMITTED USE No more restrictive than to protect asset value Lease conditions regarding structural alterations Lease conditions regarding non structural alterations
58 9. ALTERATIONS & PERMITTED USE No more restrictive than to protect asset value Lease conditions regarding structural alterations Lease conditions regarding non structural alterations Restrictions on user in the case of good estate management
59 9. ALTERATIONS & PERMITTED USE No more restrictive than to protect asset value Lease conditions regarding structural alterations Lease conditions regarding non structural alterations Restrictions on user in the case of good estate management Implications for Guarantor
60 10. BUILDING INSURANCE
61 10. BUILDING INSURANCE Obligation to insure
62 10. BUILDING INSURANCE Obligation to insure Impact on intended user
63 10. BUILDING INSURANCE Obligation to insure Impact on intended user Competitive cover
64 10. BUILDING INSURANCE Obligation to insure Impact on intended user Competitive cover Inclusions and exclusions
65 10. BUILDING INSURANCE Obligation to insure Impact on intended user Competitive cover Exclusions and exclusions Lease termination or rent suspension
66 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS
67 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner
68 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information
69 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor
70 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor Tenant Default
71 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor Tenant Default Engagement
72 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor Tenant Default Engagement Professional advice
73 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor Tenant Default Engagement Professional advice Reasonable period to rectify
74 11. ONGOING MANAGEMENT, APPLICATIONS FOR CONSENT, TENANT DEFAULTS Applications for consent Deal with in a timely manner Requests for additional information Superior landlord or a mortgagor Tenant Default Engagement Professional advice Reasonable period to rectify Forfeiture and or damages
75 12. STATUTORY OBLIGATIONS
76 13. PSRA RETURN
77 14. Model Heads of Terms
78 Summary
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