|
Sign our open letter to Government!
A new voluntary code of practice for commercial property leases was launched in April 2007. The code aims to help business owners get a better deal from their property lease.
-
Tenant occupiers do not need to accept upward-only rent reviews. Landlords should, on request, quote alternative rents for other bases of review, for example, open market.
-
Break clauses should only be conditional on the rent being up to date.
-
Ability to dispose of the whole lease, free of unreasonable conditions.
-
Subletting should be at the market rent and not a higher rent paid under an existing lease.
-
Occupiers should normally only be obliged to give the premises back at the end of the lease in the same condition as they were in at the start of the lease.
-
Repairing liabilities should be proportionate and any costly future service charge expenditure declared.
-
Insurance should be good value.
-
Facility to calculate the true overall cost of the obligation being agreed.
We receive many calls from members regarding problems with their lease and we think that we can go a step further in helping you manage your leases. We are calling for a Small Firm's Lease to be drawn up, which will help limit related problems and disputes. We would like your help in calling for this action to be taken and have drafted a letter to send to Yvette Cooper MP, the Minister of State for Housing and Planning (Department of Communities and Local Government).
Please pledge your support for the letter by signing the letter below:
|
Dear Yvette Cooper,
The Forum of Private Business (FPB) has welcomed the launch of the Code of Practice for Commercial Leases of March 2007. The code aims to make sure that property owners follow the best practice agreed across the industry, that smaller businesses have the knowledge to secure contracts on terms agreeable to them, whilst understanding the full extent of their liabilities, and to ensure that critical points are not missed.
It is clear, however, that the Code of Practice is not sufficient.
That is why we aim to secure agreement for a standard Small Business Lease, which would eliminate the need for smaller businesses to negotiate the small print each time property is leased. The Code, as it stands, allows business occupiers to invent the wheel and secure something that works, whilst a standard Small Business Lease would provide a wheel that is tried and tested, and ready to be personalised.
We, the undersigned, would therefore like you to consider the creation of a Small Business Lease.
|
|
