On the Ball

The Football World Cup is dominating most of our attention and affects us all in some way whether we like it or not. It shows that whilst luck plays an important part in winning there must also be a sustained success and this comes with proper planning and tactics.      To be on the ball!

Solicitors acting for commercial landlords will want to make sure lease clauses will give their clients control over the choice of tenant. Valuation Surveyors will want to make sure that the lease wording is not too onerous so it reduces the rental value. Unlike the World Cup neither can afford to nor indeed should rely on luck to win the game!

One way of dealing with this is to insert a landlords break clause to the lease; another is to make a request for assignment conditional upon landlords approval. Both are likely to reduce value and shoot wide of the mark.

An article in this weeks Estates Gazette ( * see below) suggests that one way of hitting the target is by the new section 38A to the Landlord and Tenant Act 1954. The same clause that deals with contracting out of security also deals with surrenders with existing landlord and tenants as long as this is done strictly by the Act. The article also suggests a separate collateral agreement at the start of the lease to this effect.

Planning and tactics will give the basis to the England team but unlike Solicitors and Valuation Surveyors they will need a bit of luck as well!

* See Estates Gazette 24 June 2006 page 203

Click HERE for an article about the exclusion of security (the file is in a PDF format)  

This is part of a regular series of topical articles provided exclusively by RDN Surveyors. If you would like further information or add your comments please reply to this e mail or contact Roger Nelson on 0800 902 0466