Archives: Glossary Terms Page 4
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Rent Reviews
Rent reviews provisions in commercial property leases were originally introduced to counter the effect of inflation during the term of the lease. A standard rent review clause will generally require the rent to be reviewed at fixed intervals, usually… Read MoreGlossary Term 19/01/17 Alex Reuben
Repair Covenants
Covenants in a lease are the terms of the contract between the landlord and the tenant and they specify responsibility for matters arising out of the lease. Normally, a lease will make express provision for one party to repair and maintain the whole… Read MoreGlossary Term 19/01/17 Alex Reuben
Schedule of Dilapidations
This is a list of outstanding repair and maintenance items, that a landlord has assessed as accrued under the terms of a tenant’s repair and maintenance obligations. It is often served by the landlord at the end of the lease in the form of a “Termina… Read MoreGlossary Term 19/01/17 Alex Reuben
Service Charge
This is a sum of money payable by a tenant on account of services provided by the landlord and is often collected quarterly in advance at the same time as the rent. A service charge usually arises when a property is in multiple occupation, such as an… Read MoreGlossary Term 19/01/17 Alex Reuben
Stamp Duty
This is a Government fixed tax, chargeable on the execution of documents, pertaining to transactions such as Leases, Agreements for Leases and Conveyances. The duty is payable by the purchaser or lessee, and the disposal document can not be adduced a… Read MoreGlossary Term 19/01/17 Alex Reuben
Sub-Letting
A sub-letting takes place when a tenant grants a new lease for their property, or part thereof, to an alternative occupier, for a period less than the residue of the tenant’s lease. The period of the sub-letting must be at least one day less than the… Read MoreGlossary Term 19/01/17 Alex Reuben
Tenant’s Improvements
The expression Tenant’s Improvements is used to describe a wide range of works, that are usually carried out by a tenant, at their own cost, and usually require the landlord’s prior approval. Tenant’s improvements may not necessarily increase the val… Read MoreGlossary Term 19/01/17 Alex Reuben
User Clause
This is a contractual provision within a lease, that specifies the use, or uses to which a property may be put and the uses which are prohibited. The formal classification of “Uses” are set out in the Town and Country Planning (Use Classes) Order 198… Read MoreGlossary Term 19/01/17 Alex Reuben
VAT – Value Added Tax
Value Added Tax is a tax that is charged on the supply, actual or notional, of certain goods and services in the United Kingdom. In cases where the landlord has elected to charge VAT on their property, this tax will be payable by the tenant in additi… Read MoreGlossary Term 19/01/17 Alex Reuben