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Jo C.
Jo C., Barrister
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Dear all, Im currently in the process of renting a Commercial

Resolved Question:

Dear all,

I'm currently in the process of renting a Commercial property in London. I need help to go trough the Contract and advise me accordingly. My email [email protected]

Best, XXXXX
Submitted: 2 years ago.
Category: Law
Expert:  Jo C. replied 2 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

Advising you on a whole contract is beyond the scope of this site but we are happy to answer any specific questions that you may have.

What in particular concerns you?
Customer: replied 2 years ago.

Hello Jo,


 


I don't really understand the following points:


 



Rights excluded


 


The operation of section 62 of the Law of Property Act 1925 is excluded. The only rights the Premises have are those mentioned in this Lease.


 


3.4.2 The Landlord shall not be liable for any loss or inconvenience to the Tenant by reason of the exercise of any of the rights retained by it (other than any loss or inconvenience in respect of which the law prevents the Landlord excluding liability).


 


19. MISCELLANEOUS


 


19.1 The parties confirm that:


 


19.1.1 the Landlord served a notice on the Tenant, as required by section 38A(3)(a) of the 1954 Act applying to the tenancy created by this Lease, [not less than 14 days] before this Lease was entered into;


 


19.1.2 [the Tenant] [[name of declarant] [who was duly authorised by the Tenant to do so] made a [statutory] declaration dated [date] in accordance with the requirements of section 38A(3)(b) of the 1954 Act [a certified copy of which [statutory] declaration is annexed to this Lease]; and


 


19.1.3 there is no agreement for lease to which this Lease gives effect.


 


19.2 The parties agree that the provisions of sections 24 to 28 of the 1954 Act are excluded in relation to the tenancy created by this Lease.


 


 


Also, most importantly contract mentions about paying VAT and sharing building insurance costs with the Landlord. but Agency says that we don't have to pay these costs, he said that it's a standard contract that's why VAT and Building insurance costs are mentioned. How can I assure that we won't pay these costs although is mentioned in the contract?


 


I thank you in advance for your assistance.

Expert:  Jo C. replied 2 years ago.
Section 62 says that there may be other easements or rights. What the lease is saying is that you cannot claim any rights other than those in the lease. For example if there is no right to light noted in the lease, you have no right to light

3.4.2 says that if the landlord has the right to come into the building to do anything, he is not liable for any inconvenience or loss as a result of him doing that. That would include repairs or inspections. That is a clause that I would want amended to say that he must cause as little inconvenience as possible

19 the whole of this tells me that the lease is being excluded from the 1954 landlord and tenant act which means that you have no statutory right to renew at the end of the term

Finally with regard to VAT it is a standard provision whereby in VAT is chargeable, you have to pay it. Just because the landlord is VAT registered does not mean there is VAT on the lease. You need to find out whether the landlord is charging VAT because it is possible for the landlord to waive the right to charge VAT. Ask the question specifically

Whilst here, it's worthwhile mentioning repairing covenants if you are responsible for repairing the building, make sure that you add the words in if they are not there already “The tenant is not required to put the property into any better condition than at the date of the lease as evidenced by the schedule of condition attached". You need to take lots of photographs of the condition of the property as it is now and get the landlord to agree those. The photographs should note every single solitary minute defect and pinhole. If you don't do all that, if you move into the building and it is a mess, it must be in good condition when you move out.
Customer: replied 2 years ago.

Thank you for your reply.


 


Yes, contract states "The tenant is not required to put the property into any better condition....etc"


 


Also wonder if you could advise on the following points, just an explanation of these sections:


 


 


 


 


5.4 Determination if the Premises are unfit for use


 


5.4.1 If the Building is damaged or destroyed by a risk against which the Landlord has insured so as to make the Premises unfit for occupation and use [and the Landlord has not repaired the Building to make the Premises fit for occupation and use within [complete] months of it being damaged or destroyed], the Landlord may determine the Lease by giving notice to the Tenant.


 


5.4.2 If the Building is damaged or destroyed by a risk against which the Landlord has insured so as to make the Premises unfit for occupation and use, then provided that the Landlord’s insurance policy has not been invalidated in whole or in part by any act or omission of the Tenant or any person at the Building with the actual or implied authority of the Tenant [and the Landlord has not repaired the Building so as to make the Premises fit for occupation and use within [complete] months of it having been damaged or destroyed], the Tenant may determine the Lease by giving notice to the Landlord.


 


5.4.3 If the Building is damaged or destroyed by a risk against which the Landlord is not obliged to insure so as to make the Premises unfit for occupation and use [and the Landlord has not repaired the Building so as to make the Premises fit for occupation and use within [complete] months of it having been damaged or destroyed], the Landlord or the Tenant may determine the Lease by giving notice to the other.


 


5.4.4 If the Lease is terminated pursuant to this Section, then the termination shall be without prejudice to any right or remedy of the Landlord in respect of any previous breach of the tenant covenants of the Lease.


 


5.4.5 Nothing in this Section shall oblige the Landlord to repair the Building.


 


18. ENTIRE AGREEMENT AND EXCLUSION OF REPRESENTATIONS

 


18.1 This Lease constitutes the entire agreement and understanding of the Landlord and the Tenant relating to the transaction contemplated by the grant of this Lease and supersedes any previous agreement or understanding between them relating to it.


 


18.2 The Tenant acknowledges that in entering into this Lease it has not relied on, nor shall it have any remedy in respect of, any statement or representation made by or on behalf of the Landlord.


 


18.3 Nothing in this Lease constitutes or shall constitute a representation or warranty that the Premises may lawfully be used for any purpose allowed by this Lease.


 


18.4 Nothing in this Section shall, however, operate to limit or exclude any liability for fraud.

Expert:  Jo C. replied 2 years ago.
5.4.1
if the building is destroyed by something for which the landlord is insured (fire for example) the landlord can determine (end) the lease.
5.4.2
you are entitled to do the same as in the above clause provided the damage is not as a result of anything that you are done and you have not done anything to invalidate the insurance
5.4.3
if the building is destroyed as a result of something which is not insured (terrorism is sometimes excluded) then either you or the landlord can end the tenancy

5.4.4
if you are previously breached the lease, even though it has now ended, he can sue you in respect of previous breaches and forum paid rent etc
5.4.5
the landlord does not have to repair the building if he does not want to, he can simply spend the insurance money.

18.1
if the landlord is told you anything about the property, ignore it because the only thing that you can rely on is what is in this document. If there is any separate letter with any kind of offer in it. Ignore it
18.2
this basically says that you cannot rely on anything the landlord has ever told you before you entered into the lease
18.3
although you may have permission to use the building for whatever you are going to do to it, granted in the lease, but does not necessarily mean that you can legally do it and you may need to get planning permission for example.
18.4
if the landlord has done something fraudulent, he cannot escape liability

Customer: replied 2 years ago.

Thank you!


sorry to bother you again, I'm still reading and found other clauses that are not clear...


 


3.2 Rights granted


 


3.2.1 The Landlord grants the Tenant the following rights:


 


3.2.1.1 the right of support and protection from those parts of the Building that afford support and protection for the Premises at the date of this Lease and to the extent that such support and protection exists at the date of this Lease;


 


3.2.1.2 the right to connect to and use any Service Media at the Building that belong to the Landlord and serve (but do not form part of) the Premises.


 


 


Q. clause 7.4 overrides 7.3??


7. REPAIR AND DECORATION

 


7.1 The Tenant shall keep the Premises clean and tidy, including cleaning the inside and outside of the windows at the Premises.


 


7.2 The Tenant shall replace any plate glass or other window glass that becomes cracked or broken.


 


7.3 [The Tenant shall decorate the Premises [and replace the floor coverings] in the last three months before the end of the Term to the satisfaction of the Landlord and using materials and colours approved by the Landlord.]


 


7.4 [The Tenant shall keep the Premises in [reasonable] repair, but shall not be obliged to put the Premises into any better state of repair than it is in at the date of this Lease as evidenced by the Schedule of Condition annexed to this Lease, nor to carry out any repairs where the disrepair results from any risk against which the Landlord has insured (provided that the Tenant, or any person at the Building with the actual or implied authority of the Tenant, has not vitiated the Landlord´s insurance policy).]


 


15.2 If the Landlord re-enters the Premises (or any part of the Premises in the name of the whole) pursuant to this Section, this Lease shall immediately end but without prejudice to any right or remedy of the Landlord in respect of any antecedent breach of the tenant covenants of this Lease.


 


Once againg, I thank you in advance for your help...


Expert:  Jo C. replied 2 years ago.
Obviously, going through the whole lease piece by piece is beyond the scope of this site.
Each of these posts should really be posted as a separate question however I am prepared to continue with this one

3.2.1.1
he won't let the building fall down
3.2.1.2
you can connecting to the drains and electricity etc

7.1
this is obvious and means literally what it says
7.2
this is obvious and means literally what it says
7.2
this is obvious and means literally what it says
7,4
you are obliged to keep the building in reasonable repair but not improve it, but if it is damaged by anything which is covered by insurance, you are not required to repair that

15.2
if the landlord forecloses on the lease and takes the property back, the lease ends and you are not entitled to move back in even if you rectify whatever went wrong whereby he foreclosed on the lease. You are still liable for any rent arrears or breaches of covenant
Customer: replied 2 years ago.

I greatly appreciate your help.

 

Just one last clarification on an already asked question:

 

Do clause 7.4 overrides 7.3?

 

7.3 [The Tenant shall decorate the Premises [and replace the floor coverings] in the last three months before the end of the Term to the satisfaction of the Landlord and using materials and colours approved by the Landlord.]

 

 

 

7.4 [The Tenant shall keep the Premises in [reasonable] repair, but shall not be obliged to put the Premises into any better state of repair than it is in at the date of this Lease as evidenced by the Schedule of Condition annexed to this Lease, nor to carry out any repairs where the disrepair results from any risk against which the Landlord has insured (provided that the Tenant, or any person at the Building with the actual or implied authority of the Tenant, has not vitiated the Landlord´s insurance policy).]

Expert:  Jo C. replied 2 years ago.
In effect yes because it is very difficult to decorate something without actually improving it!

Although, if it is freshly decorated when you move in, it is not improving it.

Jo C., Barrister
Category: Law
Satisfied Customers: 69512
Experience: Over 5 years in practice
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Customer: replied 2 years ago.

Thank you so much for all your help!!!

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