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The Code for Leasing Business Premises in England and Wales 2007
For advice on any issues relating to the granting of a new lease or lease renewal, contact JMW today on 0345 872 6666.
The Code aims to promote flexible leasing arrangements, efficiency and fairness. It advocates an approach whereby lease negotiations are conducted from the outset in an open and constructive manner, which in turns assists the parties to establish the terms on which the lease is to be granted. In theory, this will reduce the time spent negotiating the lease and speed up the transaction time, as well as keep the costs down. The Code is intended to be used as a checklist for negotiations not only before the grant of a lease, but also prior to lease renewals.
The Code consists of three parts:
1. The Landlord Code – ten requirements for landlords for a lease to be Code compliant
2. The Occupier Guide – this part explains the main elements of a lease and provides helpful tips for occupiers
3. Model Heads of Terms
The Code also provides recommendations for the following stages of the transaction:
1. Conduct of initial negotiations
2. Terms that may be included in the lease
3. Conduct of the parties during the lease
The Code addresses the issues that are fundamental to the parties, such as rent deposits and guarantees, length of term and break clauses, rent review, assignment and subletting, service charges, insurance and repairs.
The Occupier Guide is written in plain English and is aimed at people who do not deal with leases every day of the week. As well as explaining all elements of the transaction, the Occupier Guide gives a prospective tenant a number of suggestions as to how the lease might be changed to suit its requirements.
The Code is entirely voluntary and therefore not all landlords offer Code compliant leases. However, if the landlord does decide to use the Code, he will be required to inform the Tenant of that fact and point out any departures from the Code.
The government continues to monitor the use of the Code and its effect. Research to date suggests that take up of the Code can be patchy. However, it is anticipated that more and more landlords will adopt the Code and it will become part of standard practice.
Whether acting for a landlord or a tenant, JMW’s commercial property team can provide advice and assistance on the use of the Code, as well as more generally on all issues arising during the grant of a new lease or a lease renewal.
Call us today on 0345 872 6666 or complete the online enquiry form at the top of this page and we will get back to you.
Our Manchester Partners
Partner and Head of Department
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