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Landlord and tenant – commercial

Renewal lease – three months rent-free?

   A recent High Court decision has addressed the issue of whether a three-month rent-free period should be allowed when assessing the rent under an LTA 1954 renewal lease.

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L’s costs – indemnity basis?

   A recent CA decision could prove extremely helpful to Ls, and costly to Ts. In essence, it confirms that L will often be entitled to indemnity costs, and this will extend to a wide range of claims brought by L.

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Assignment – from T to G?

Can T assign its lease to T’s guarantor (G)?

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Pop-ups – the basics

Last year it was estimated that there were some 10,500 pop-up shops and businesses across the UK, employing 26,000 people. A reminder of key points:

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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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