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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12569
Experience:  30 years as a practising solicitor.
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We are based in scotland We are looking to set up a

Customer Question

HelloWe are based in scotlandWe are looking to set up a commercial lease between an operating company (registered in scotland) which runs a hotel and property company (registered in england) which owns the hotel. Both companies are are both owned by the same people. It would be a full repairing lease, option to sublet, early break clause. We are wondering about the wording of the actual payment terms.And any other issues we haven't consideredAndrew
Submitted: 6 months ago.
Category: Scots Law
Expert:  JGM replied 6 months ago.

I am a solicitor in Scotland. What do you mean about the payment terms? What specifically are you concerned about?

Customer: replied 6 months ago.
it's not going to be at market value. Id rather not say "the rent is for a peppercorn". i understand there must be some consideration. But basically the operating company won t pay any rent... the maintenance costs are substantial and will be borne by the operating company. The property company will just own the building and no costs or revenues will go through it's books. other than bank charges, companies house fees. how would this normally happen.
Customer: replied 6 months ago.
how would the sentance/paragraph concerning payment best be worded...
Expert:  JGM replied 6 months ago.

Even if the rent is token you can still specify the actual amount in the same way you would in any lease and the usual full repairing and insuring terms would be incorporated too. You might find a suitable style at the website of the Property Standardisation Group which has many Scottish styles including commercial leases.