Grant of a lease: legal issues

by Practical Law Property

Maintained | England, Wales

A practice note that explains the principal legal issues involved when acting on the grant of a commercial property lease. This practice note outlines the fundamental nature of a lease, distinguishing it from a licence, and examines the critical requirements of party capacity and title. It addresses the formalities for creating a legally effective lease, including when a deed is necessary under the Law of Property Act 1925 (LPA 1925). A key focus is the framework for landlord and tenant liability, exploring the significant distinctions between "new" and "old" leases under the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995) and the implications for the assignment of a lease or transfer of the reversion. This practice note also provides an overview of various lease types, including business tenancies subject to the Landlord and Tenant Act 1954 (LTA 1954), FRI leases, and different rent structures such as turnover or indexed rents, offering guidance on their practical application.

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