LAW2021 Online: Commercial Property (Spring)

Presented by Mark Shelton, Commercial Property Management Law Trainer

With the lifting of restrictions on landlords’ remedies for the recovery of rent arrears, very many tenants will face serious problems, particularly in the retail and hospitality sectors. Landlords have, in the main, been prepared to agree rent concessions up to now, and whether they will continue to support tenants’ businesses may largely come down to negotiating positions.

Whether there are former tenants or guarantors to pursue may be one important factor; others may be re-letting prospects, remaining length of term, and the likely outcome of any insolvency process. Tenants need to be aware of the potential bargaining chips, but also have a clear-eyed understanding of what happens if no arrangement can be agreed with the landlord.

Learning objectives:

• What will be the likely impact of restrictions on remedies being lifted?
• Is it only the landlord that must be dealt with, or does the tenant also need to engage former tenants, sub-tenants, etc?
• Is there any route to early lease termination?
• Can insolvency supply a solution?
• What can tenants offer landlords to sweeten a deal?

Presented by Mark Shelton, Commercial Property Management Law Trainer

Now that the Code for Leasing Business Premises has been relaunched as an RICS Professional Statement, it may be expected that closer attention will be paid to what it says. However, while the Code may now have teeth, it remains to be seen whether it will have sufficient bite to get through to the SMEs, who forego professional advice. Who will ensure the unrepresented party is made aware?

The Code’s launch coincided with the Covid-19 crisis and the recasting of the Use Classes Order, and its recommendations must be assessed in the light of the changed circumstances which these developments have brought about.

With ever shorter lease terms, and many tenants without professional help, a critical look at the role and the content of the Code is overdue.

Learning objectives:

• Why would an intending occupier care about the Code?
• How does the RICS’ own standard lease fit in with the Code?
• Does the Code reflect tenants’ need for ever greater flexibility?
• What opportunities have been missed?
• Might standard lease forms be a better approach?

Presented by Richard Snape, Head of Legal Training, Davitt Jones Bould

The Coronavirus Act 2020 has a major impact on commercial leases. In addition, recent case law on business rates and empty properties is highly significant and there have been major cases on service charges, alienation and user covenants and the Landlord and Tenant Act 1954. The course aims to look at these and other changes and how to adapt to them.

Topics covered include:

• The Coronavirus Act 2020 and its impact on commercial leases
  Covid-related areas
• Recent case law on leases and licences, the Landlord and Tenant Act 1954 and alienation and user covenants
• Keep open clauses in the current climate
• Business rates and empty properties
• Changes to use classes in the Town and Country Planning (amendment) (England) Regulations 2020

Presented by Richard Snape, Head of Legal Training, Davitt Jones Bould

An ability to correctly terminate a lease by the tenant is essential, especially in the retail sector in the current market. In addition, landlords need to be aware of statutory requirements and business rate issues whilst the property is empty. The course aims to look at these issues and suggests solutions.

Topics covered include:

• Exercising break clauses and conditions precedent including recent case law

• Serving the break notice

• Options to renew as opposed to breaks

• Peaceable re-entry and the issues for the landlord

• Statutory requirements and insurance issues whilst the property is empty

• Business rates on empty properties including recent case law

• Company Voluntary Arrangements