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Landlord and tenant – commercial

MEES – commercial property

It is already unlawful to grant a new lease of domestic property with an EPC of F or G. For a commercial property this will only apply as from April 2023. 
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Defective lease – ‘business efficacy’?

T had a business lease of cafe premises. But, the lease did not contain any provisions as regards repair of the exterior, or the interior plumbing and electrical installation. 
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Lease renewals – unopposed

Under LTA 1954, the process of renewing a tenancy is started by L or T serving between six and 12 months notice on the other. 
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CVA – subsequent liquidation

The BHS litigation has thrown up an interesting point on the effect of a CVA when that CVA is terminated by the company going into liquidation.
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Notice – registration gap

The ‘registration gap’ continues to cause problems.

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Service charges – code of practice

The RICS has published the proposed changes to its Code of Practice on service charges. The important change is that RICS members must act in accordance with eight core principles; the Code is no longer just advisory as to best practice (although it does contain broad ‘best practice recommendations’).

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LTA 1954 – L’s ‘intention’

Two of the grounds on which L can oppose T’s application for a renewal lease are:

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Sale and leaseback – intro

A sale and leaseback involves the sale of a property to a third-party investor for a lump payment, immediately after which the investor then leases the property back to the seller for an agreed period in return for the payment of rent. The seller therefore no longer owns the asset but can use it for business purposes.

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Drafting – ten-year trends?

A note from Eversheds Sutherlands notes some perceived changes in drafting approaches over the last decade or so:

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Rent review – time of essence?

Any rent review timescale must be strictly complied with. Moreover, even if there is no express time limit set out in the lease, the court may be willing to imply time limits for reasons of ‘business efficacy’ – with T then being able to serve a notice making time of the essence in respect of those implied (or even express) time limits. That much is well known.

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