Third time lucky?

As you may know, the Code of Practice for Commercial Leases has just been revised to its third edition.

The new Code aims to promote fairness in commercial leases, being designed to help businesses avoid the pitfalls of lease agreements, and to ensure that landlords operate to an industry-agreed standard.

It comprises three documents:

• Succinct and focused landlord’s code
• Step-by-step guide for tenants
• Heads of Terms checklist for all parties to use during lease negotiations (this is in an interactive format so either or both parties can enter terms of agreement online and speed up the transaction process)

The code is voluntary, but the Government hopes it will be used as best practice and advice in all lease negotiations, enabling businesses to get a better deal on commercial property leases.

Commenting on the launch, Philip Freedman CBE, chairman of the Code Steering Group said: “I strongly urge prospective tenants, their agents, solicitors, bankers and accountants to ask for Code compliancy when negotiating a lease, and landlords and their representatives to follow it.”

As Chartered Valuation Surveyors, we wonder if the property industry will embrace the new Code. If not, legislation to enforce the Government’s wishes remains a threat e.g. against ‘upward only’ rent review clauses onerous break clauses and restrictions on assignments and subletting.

More information is at   www.leasingbusinesspremises.co.uk

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