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Landlord and tenant – commercial

Forfeiture – ‘peaceable re-entry’

How long can T wait before applying to the court for relief from forfeiture? If the forfeiture is because of court proceedings then there will normally be a six-month statutory limitation period. But, if the forfeiture is based upon peaceable re-entry then the court has an equitable jurisdiction that is not subject to the six-month statutory period, and T merely has to make the application with ‘reasonable promptitude’.
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Anchor T – anti-competitive?

It is fairly standard for ‘anchor Ts’ in shopping centres to have a veto on the grant of other leases in the development. There have been concerns that such a provision will automatically be void (as being anti-competitive). However, the ECJ has now held otherwise, and thus accepted the reality of current market practice where such lease provisions are often essential to secure an anchor T, and to ensure the financial viability of the development. Clearly, there will be circumstances in which such an arrangement could be challenged but that is likely to be an uphill struggle. Source: DAC Beachcroft.
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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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