The Practical Lawyer

L and T can agree that T will not have the security of tenure provisions that normally apply under LTA 1954. Prior to June 2004, it was necessary for L and T to get a consent order from the County Court; these days, L merely serves a warning notice and T responds by signing a statutory declaration.

The property downturn has seen a renewed focus on the detailed wording of AGAs. For instance, in a recent CA case the terms of the AGA limited the guarantor’s liability to the period during which the assignee was ‘bound by the tenant’s covenants of the lease’.

The three or six-month period of rates relief for empty properties begins to run from the moment the property becomes unoccupied – even if there is a T in administration or liquidation in occupation (who is, in any case, exempt from rates liability).

Since April 2008, unoccupied business premises no longer get the empty rates benefits that they previously enjoyed. Now, unoccupied commercial premises (eg retail or office) get a three-month exemption and then have to pay 100% rates (previously it was a three-month exemption, and then 50%).

The Contracts (Rights of Third Parties) Act 1999 has proved to be a damp squib. Whilst it is an Act of enormous potential it has largely been killed off at birth by standard contractual clauses that exclude it from applying.

As the number of vehicles increases each year, so the pressure on parking spaces grows. To what extent can L alter or change the parking arrangements, by introducing new parking regs for Ts?

When a business lease expires, T will often remain in occupation whilst the new lease is being negotiated. But, many Ts do not appreciate that there may be an SDLT liability during this holding-over period.

There can be insurance complications when T is doing fitting-out works to part of an existing building. For instance, suppose T has taken a lease of a floor in a large office block, and is about to enter into a Joint Contracts Tribunal (JCT) contract for the fitting-out works, which will involve some works to structural parts of the building.

The CA has upheld the validity of a wide-ranging exclusion clause in serviced office contracts offered by Regus:

‘We will not in any circumstances have any liability for loss of business, loss of profits, loss of anticipated savings, loss of or damage to data, third-party claims or any consequential loss.’

An L who is involved in LTA 1954 lease renewal negotiations should avoid becoming involved in the pitfalls of CPR Pt 36.