A Rough Guide to Leases

A Rough Guide to Leases

Before entering into a lease it is necessary to consider the following basic terms present in a lease:

	The Premium
	The sum which the tenant pays the landlord for the grant of the lease.
	The Term
	How long the lease lasts for.
	The Starting Date
	This need not be the date of completion as the Landlord may wish a batch of leases to start on the same day.
	Ground Rent
	This is often paid on the first day of each quarter.
	Rent Review
	This will involve a basis of the calculation and frequency of the rent review.
	Easments and reservations
	The landlord is likely to reserve certain rights over the land that is to be leased, such as a right of way to enter the property if necessary to maintain and repair the common parts.
	Common Parts
	These include the parts of the property common to all of the tenants and there are usually provisions for their maintenance and repair which is usually done through a periodic service charge payable by all of the tenants.
	Tenant's Covenants
	The following are usually standard: to pay rent to repair not to make alterations or improvements not to change the use of the property not to sublet the property without the landlord's consent
	Landlord's Covenants
	To ensure and keep the common parts in repair
	Insurance
	This can be achieved in several ways, but contributions to a block policy taken out by the landlord (or management company) ensure tenants are covered for the same risks.
	A Cesser of Rent
	A tenant may cease to pay rent if a building is burnt down, or on other specified events.