Types of Lease in Commercial Real Estate

The assignment discusses the importance of carrying out lease processes in a systematic manner according to the Landlord and Tenant Act. The act provides scrutiny of tenure and the right to renew tenancy at the time it comes to an end, but landlords can oppose renewal for any particular reason. It is concluded that landlords have the right to breach the contract if tenants do not pay rent on time and must give notice period to tenants before ending the lease after its expiration.

Commercial Practice

Table of Contents
Introduction......................................................................................................................................1
Questions 1 ......................................................................................................................................1
A.) Procedure that can be adopted by Tenancies .......................................................................1
B Whether the tenants have any right against him......................................................................3
C In respect to Unit 6 Suggestion to Fred. .................................................................................3
Question 2 .......................................................................................................................................4
REFERENCES................................................................................................................................6
Books and Journals.....................................................................................................................6

Introduction
In UK tenancy act and landord and tenant act provide information related to the rules and
regulation for renting the property on lease. With the following laws, tenant and landlords can
take action for fulfil their aims.
Questions 1
According to the given scenario, Fred is the owner of an industrial estate in the center of
Birmingham, which consists of a number of the unit. Fred has owned the estate for twenty years
and all the units in the estate were subject to seven-year FRI tenancies not excluded from the
landlord and Tenant Act 1954. Further, in the following tenancies are both due to expire on 29
April 2018 on the following
A.) Procedure that can be adopted by Tenancies
As per the unit, 2 relationship between Barking Mad dog and Fred is not so good
because the unit fell into a disrepair state and Barking is not repairing it or permitting repairing.
According to The landlord and Tenant act 1954, the tenant has right to remain in occupation until
the end of the contractual term of a lease (Manivannan, Skjolsvold and Khatri, 2015). Along
with this, Tenant also has right to take permission for the new lease. On the other side, the
landlord can object for this and regain the possession of the property when the following
situation takes place.
 If the landlord wants to repair the property or want to occupy for itself.
 If the tenant has a history of non-payment rent or it does not comply with the lease
obligations.
 Terminating lease with security
Before terminating the lease it is important for the landlord to give 3 month notice period to the
tenant (Southworth and Manning, 2017). However, the landlord can oppose the application of
tenant in the court of new lease as per the act. Along with this, it is important to take legal
advice before serving any notice as because of small error take place in notice then it will be
declared as invalid and its consequences can be serious.
One of another act related to lease is Housing act 1988. According to this act, every landlord has
to be encountered. In this act law regarding any conflict take place between the tenants and
landlord’s is provided (Calder, Wang and Khatri, 2015). This act is the solution of the problem
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as it was introduced to put in place a various number of safeguards for making sure that
landlords had a right to gain possession of their property if they want it. Three common law
under this act are as follows
Rent regulation: According to this law landlord can charge whatever they like as per the
property. The landlord has right to avoid the notice procedure and can increase the rent.
Security of tenure: As per the housing act there are two types of tenancy that is longer term
security and without it.
It is stated that Barking Mad was not the good tenant as because it does not pay rent on
time and also not permit Fred to measure the disrepair. Therefore, as per the act housing act 1988
and The landlord and Tenant act 1954 Fred have right to terminate the lease contract with
Barking Mad. He is not paying rent on time and repair the damages. Barking Mad cannot claim
in court against the Fred (Furber, Sullivan and King, 2017). However, there are some rights and
responsibility of landlord that is to maintain and repair the rental property at the time of lease
under the given circumstance:
The lease contains specific agreement in which it is written that landlord will be responsible for
the repairing and maintain the Unit.
If the rental place is dangerous and it can harm tenant health and life (Pawlowski and Brown,
2015).
If repair and maintenance are required than it is important for double check agreement so
that it came to know who is responsible for repairing.
On the other side In unit 6 Jim was very reliable tenant because he pays rent on time and running
his business since from last 15 years. Therefore, Fred cannot end the contract with Jim without
giving him any notice (Roberts, Sykes, and Granger, 2016). Along with this, Jim is the reliable
tenant if Fred ends the contract with him then it needs to offer the new location for running its
Gym business. As tenant can offer its landlord to help him in finding a new tenant by advertising
the new unit
A landlord has right to choose to terminate a tenancy at the end of a lease when it comes to
expiring. If the landlord does not want to carry out contract further and wants to end it then some
states required that Landlord need to give notice to the tenant even lease is going to end on the
spicy date (Manivannan, Skjolsvold and Khatri, 2015). The reason behind giving the notice is
that Tenant can find the new rental. Besides this, if tenant pay rent after expiring the lease and
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landlord accept it then old lease automatically get renewed for the same period as the old lease
was and contain the same provision.
B Whether the tenants have any right against him
In Unit 2 the relationship between Barking Mad who is owner the of dog grooming business
and Fred who provide Unit 2 for rent to him is not good (Saha, Lease and Perry, 2013). Along
with this Unit need to repair but the tenant is not permitting and its customer also state some of
its tiles are missing. Further, Barking Mad refuse Fred to measure the disrepair and even not
make pay rent since from last 3 months.
As per the act in Barking Mad does have any right against the Fred because tenant not pays
rent on time. Along with this unit, 2 is required to repair but Barking mad is not repairing it and
not permitting Fred to repair it (Salehi, Javadi and Buyya, 2014). Therefore, If Fred does not
renew tenancy of this unit when they expire then Barking Mad not have right to sue against him
in court because of he is not reliable for it.
On the other side, in Unit 6 Jim is running his business since from last 15 years. Along with
this he also pays rent on time to Fred. If Fred does not renew tenancy of this unit when they
expire then Jim have right to sue against him in the court and apply for the new lease.
C In respect to Unit 6 Suggestion to Fred.
Unit 6 was given on rent to Jim who used it for Gym business from last fifteen years.
Along with this, Jim also pays its rents on time to Fred. Therefore, relations between both is
appropriate (Rodriguez and Buyya, 2014). However, Tenancy between both of them was expired
and Fred does not want to renew it.
In respect to Unit 6, Fred wants to redevelop this unit for running its own business. Along with
this Fred owns another unit of a similar size for Jim which is located outside the skirts of
Birmingham.
According to the different laws related to landlord and Tenant, it is important for Fred to give
the notice period to Jim before ending the lease. The notice can be given monthly or before 60
days. Along with this, Jim can ask for help to Fred for finding a new rental place. However, Fred
is already offering him the new rental place which is located on the skirts of Birmingham.
According to the 1954 act after the end of contractual term landlord can bring it to end by
serving a section 25 notice. It means Fred need to give the notice period to Jim so that he came to
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know the date of leaving the rental place (Kahn, Kokand Quigley, 2014). On the other side, the
tenant being ended it by serving a section 26 notice request for the new tenancy. However, both
Jim and Fred need to give notice between the 6 to 12 months, not the time of expiring the
contractual term. Further, it is important for the Fred to offer him a new place for rent so that he
can carry out his business without any issues (Murthy and Jack, 2014).
Question 2
The difference between the 2 leases that is Milbanke Court, Milbanke Way, Bracknell and
Grantley House, Park Lane, Cranford, Middlesex
There are two properties that are Milbanke Court Way, Bracknell and Grantley House,
Park Lane Cranford, Middlesex. This both properties are controlled by the same landlord which
is being observed. In the category of the gross lease it considers the Milbanke court way,
Brackness while another property that Grantley House, Park Lane Cranford, Middlesex come
under the net lease which is the most effective of the different lease contract sorts (Roberts,
Sykes and Granger, 2016). After inspecting the property it came to know that both are in the
used by tenants for occupation purpose. Both leases are of different types as because the
Grantley house is that which falls under the ‘Landlord and Tenant Act 1954 while the second one
that is Milbanke Court which is not considered under the landlord and Tenant act 1954.
Therefore, if Landlord does not want to grant new lease then it is important for him to fall
different procedure for both leases they have. In the Granltely house lease case, it is important
for the landlord to follow step by step process (Southworth and Manning, 2017). On the other
side there no need of it in case of Milkbanke court. However, the tenant does not consider it
under the agreement for further use with the landlord. Therefore, there is major difference
between this both leases are
The first property falls under the category of the gross lease that is Milbanke Court Milbanke
Way. In the gross lease, the tenant need to pay the gross amount to the landlord for rent include
the sales tax. Apart from this property expenses that is insurance, maintenance and tax on
property are the responsibility of the landlord (Furber, Sullivan and King, 2017). The lease
contract will merge with the procurement which required the dweller for taking the care of
property cost which kept over the specific level. Further, the variation of the fundamental lease
here arrangements incorporate the flat lease and step lease. As compared to step lease the flat
lease is important and it is prevalent with the small company. On the other side Grantley House,
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Park Lane Cranford is a net lease in which provision need to pay the tax, portion of it or
maintenance cost. This net lease is basically used in the requirement of the commercial real
estate. Under it there is three primary type of lease tat is single, double and tipple (Pawlowski
and Brown, 2015). However, it is commercial and uses by the landlord. Under the landlord and
tenant act, it provides scrutiny of tenure that is the right to renew of tenace at the time when it
comes to ending. However, the landlord can oppose to the renewal for any particular reason.
Conclusion
From the above report it is concluded according to the landlord and tenant act it is important for
to carry out all the lease process in a systematic manner. As per this act if any tenant not pay rent
on time then landlord have right to breach the contract. Further it is concluded that if landlord
want to end the lease after its expire then it need to give notice period to tenant before 60 days so
that tenant can search for new rental place. Further, there without any specific reason landlord
have no right to end the lease contract with tenant.
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REFERENCES
Books and Journals
Furber, J., Sullivan, C. and King, V., 2017. Considering the ‘all too familiar’: The Landlord and
Tenant Act 1954:‘Substantial work of construction’and the role of the building surveyor. Journal
of Building Survey, Appraisal & Valuation, 6(2), pp.106-111.
Pawlowski, M. and Brown, J., 2015. Part II of the Landlord and Tenant Act 1954: repeal or
further reform? Part 1.
Southworth, J. and Manning, C., 2017. Does recent government guidance clarify the uncertainty
around the Minimum Energy Efficiency Standards (MEES) Regulations?. Journal of Building
Survey, Appraisal & Valuation, 6(2), pp.136-141.
Child, P., 2017. Landlordism, Rent Regulation and the Labour Party in mid-twentieth century
Britain, 1950–64. Twentieth Century British History, p.hwx036.
Dollar, P. and Thompson-Copsey, S., 2016. Mixed Use and Residential Tenants' Rights: The
Landlord and Tenant Act 1987 and Leasehold Enfranchisement. Taylor & Francis.
Roberts, P., Sykes, H. and Granger, R. eds., 2016. Urban regeneration. Sage.
Calder, B.G., Wang, J., Bedekar, V., Sankaran, S., Marvin, M.I., Gunda, P.K., Zhang, Y.,
Antony, S., Manivannan, K., Skjolsvold, A.E. and Khatri, H., 2015. Migration of task to different
pool of resources based on task retry count during task lease. U.S. Patent 9,170,849.
Saha, R.K., Lease, M., Khurshid, S. and Perry, D.E., 2013, November. Improving bug
localization using structured information retrieval. In Automated Software Engineering (ASE),
2013 IEEE/ACM 28th International Conference on (pp. 345-355). IEEE.
Salehi, M.A., Javadi, B. and Buyya, R., 2014. Resource provisioning based on preempting
virtual machines in distributed systems. Concurrency and Computation: Practice and
Experience, 26(2), pp.412-433.
Rodriguez, M.A. and Buyya, R., 2014. Deadline based resource provisioningand scheduling
algorithm for scientific workflows on clouds. IEEE Transactions on Cloud Computing, 2(2),
pp.222-235.
Murthy, D.P. and Jack, N., 2014. Extended warranties, maintenance service and lease contracts:
modeling and analysis for decision-making. Springer Science & Business.
Kahn, M.E., Kok, N. and Quigley, J.M., 2014. Carbon emissions from the commercial building
sector: The role of climate, quality, and incentives. Journal of Public Economics, 113, pp.1-12.
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