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Landlord and tenant – commercial

Rent deposit – duration?

As part of the pre-lease negotiations, T may agree to provide L with a rent deposit (ie a sum of money that is deposited as security, in case T defaults on paying the rent, service charge, etc). But, on what terms?
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Protected sub-T – effect on L

Suppose T grants a sub-lease to sub-T. If T’s lease comes to an end then L will take over sub-T (ie sub-T will become the direct T of L), provided sub-T has the protection of LTA 1954.
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L’s redevelopment – T’s quiet enjoyment?

A lease may well give L an express right to redevelop adjoining property. But, how does that square with T’s implied right to ‘quiet enjoyment’?
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Subrogation – T’s liability?

If T has been in breach of the lease, then L can sue to recover appropriate damages. If L is insured, then L’s insurers can take over L’s claims, and thus sue T. This is the right of subrogation.
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Break notice – L’s address?

We all know of the pitfalls of serving a break notice (eg serve it in the correct form; ensure it is served at the correct time; check that all lease covenants have been complied with) but it is also important to check that L is being served at the correct address.
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Interpretation – headings and deletions

If there is an argument about how to interpret a clause, to what extent can the court refer to clause headings or to deleted words?

The starting point, of course, is if the lease provisions are unambiguous then they will be strictly interpreted. It is only in cases of ambiguity that the court will look at alternative methods of interpretation:

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Heat meters – December

By 31 December 2016, heat meters must be fitted to all existing and new communal heating systems (provided it is cost-effective and technically feasible to do so). Accordingly, Ls of existing buildings which have supplies of heating going to more than one occupier through a communal system need to be aware of the requirement to fit such meters. Thus, when entering into a new lease with an occupier, Ls should ensure sufficient rights are reserved by the lease to allow access for fitting such meters, and if possible include provisions for the recovery of such costs through the service charge.

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Arrears – s17 notice

Recent cases have underlined the importance of serving an s17 notice on a former T or guarantor if the current T is in arrears.

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CRAR – the basics

Two years ago, in April 2014, the common law right of distress was abolished for both residential and commercial premises. Instead, a new statutory procedure, CRAR, was introduced for commercial premises (for residential L must obtain a court order to recover any arrears by way of a simple debt claim). A few reminders:

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Alterations – consent

An application by T to L for consent for alterations is a common occurrence. All too often, such simple applications can get bogged down by procedural difficulties, with the parties then taking entrenched positions. Hence the need for a simple code of good practice, such as the new protocol developed by Hogan Lovells and Falcon Chambers. Like their existing protocol for applications (ie consent to assign or sublet), the protocol for alterations sets out practical steps for both L and T to take. So, while in no sense is it binding, it can save time and money if both parties agrees to follow it:

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