Keeping our clients informed is important to us so we regularly publish our thoughts on topics that will be of interest to anyone involved with commercial property. We call them ‘insights’ and we hope you find them of interest.
By now everyone is pretty well aware that new leases need to be for a minimum of five years but there are exceptions so we thought we would point them out.
The term of a lease does not have to be a minimum of five years if:
- - the Retail and Commercial Leases Act doesn't apply (if you want more information on this please contact our office for an info sheet)
- - the tenant is holding over from a previous tenancy that provided for up to five years
- - a certificate signed by a solicitor has been obtained
- - the tenant has been in the property for at least five years previously
- - the tenancy is a sub-lease and is for the full balance of the term left on the head lease
- - the premises have been excluded by regulations
- - the tenant is related to the lessor
- - the tenant is an incorporated association and the lease grants less than 15 hours a week occupation
Most of these exceptions are fairly uncommon but nevertheless it is useful to know they exist.