Read more about our latest real estate update aimed at in-house lawyers practising in the property and real estate sector.
Where a lease provides a comprehensive scheme of repair and insurance, the court will not imply terms to cover any gaps in that scheme.
Historic exceptions of mines and minerals did not include mudstone, the common rock of the district.
A landlord did not demonstrate the requisite intention required to oppose a statutory lease renewal under ground (g).
Time was of the essence for the purposes of a landlord’s notice to increase a tenant’s interim service charge contribution.
A 1922 restrictive covenant was unenforceable as it did not clearly identify the land intended to be benefited by it.
The draft Bill and the new Code cover the government’s plans to deal with rent arrears that accrued during the pandemic.
The key points from the Bill (as currently drafted) include the following:
Existing restrictions against forfeiture, exercise of CRAR and winding-up companies (which apply to all business leases) are already in force until March 2022. However, they do not cover debt claims, drawing down on rent deposits and bankruptcy orders against individuals (which is why the parts of the Bill dealing with those matters will have retrospective effect).
The new Code replaces the voluntary one first published in June 2020 and applies to all rent arrears that have built up during the pandemic (so is wider in scope than the proposed legislation). It provides guidance on how parties should approach negotiation regarding rent arrears that accrued during the pandemic and is intended to align with the new legislation. In particular, it stresses that negotiations between landlords and tenants should aim to protect the viability of a tenant’s business, but not at the expense of a landlord’s solvency. It goes on to say that a tenant who can afford to meet its lease obligations in full should do so without delay and that any relief sought should be no greater than is necessary for a tenant to afford the lease payments (viability and affordability are a constant theme throughout). The Code also provides guidance on the arbitration process, the evidence that will be considered and the principles the arbitrator will apply.
The government has made it clear that the new arbitration scheme is intended to be used only as a last resort where landlords and tenants have been unable to resolve the issues between them. This is why the new Code has been published in advance of the legislation coming into force – to enable the parties to negotiate based on the principles that will be applied by an arbitrator. The Bill expressly makes it clear that it does not affect the ability of landlords and tenants to resolve amicably between themselves how to deal with the ring-fenced arrears.
A copy of the new Code can be viewed from here.
This Act comes into force on 4 January 2022 and establishes a new statutory regime for government scrutiny of, and intervention in, acquisitions and investments for the purposes of protecting national security.
The Act contains both a mandatory and a voluntary notification scheme.
The mandatory notification system is not relevant to purely property transactions. It requires anyone acquiring shares or voting rights exceeding certain thresholds in companies and other entities undertaking specified activities in certain sensitive sectors of the economy to obtain approval from the Secretary of State for Business, Energy and Industrial Strategy before completing their acquisition.
The voluntary scheme can apply to purely property transactions. Parties who consider that their transaction may raise national security concerns can voluntarily notify the Secretary of State.
The Secretary of State can call in to review any transaction covered by the Act (whether or not it has been notified) where there is a reasonable suspicion that it could give rise to a risk to national security. A call-in notice may be issued at any time while the transaction is in progress or contemplation or within six months of the Secretary of State becoming aware of a completed transaction, as long as this happens within five years of the transaction completing. The Secretary of State can impose conditions on the transaction or prohibit or unwind it.
Government guidance states that land is mainly expected to be an asset of national security interest where it is (or is proximate to) a sensitive site. Examples of such sensitive sites include critical national infrastructure sites or government buildings. However, the Secretary of State may also take into account the intended use of land.
The Department for Digital, Culture, Media & Sport has published its response to this consultation which ran between 27 January and 24 March 2021.
The key points to arise include the following:
The changes to the Code will be effected through a new Bill, the Product Security and Telecommunications Infrastructure Bill.
A copy of the government response to the consultation can be viewed from here.
The Department for Transport has published its response to its 2019 consultation on this topic. The response indicates that the government intends to introduce the following changes to building regulations:
The relevant changes to building regulations will come into force on 15 June 2022.
A copy of the government response can be viewed from here.
The Land Registry has added a new section 13.6 to Practice Guide 8 to cover this point. The guidance is described as ‘interim’, pending a more thorough review.
In essence, the process is as follows:
A copy of Practice Guide 8 can be viewed from here.
The Land Registry has announced that, from 31 January 2022, its Scale 1 and Scale 2 fees will increase. Those submitted electronically will increase by 11% (for the majority of applications) and those submitted by post will increase by 21%.
Details of the increases can be viewed from here.
The Land Registry has announced that, from November 2022, it will no longer accept scanned or PDF copies of AP1s for changes to existing titles using the existing Document Registration Service on the portal. Instead, you will have to submit a digital AP1 using either the new Digital Registration Service on the portal or a case management system connected to the Land Registry’s Business Gateway platform.
The Document Registration Service will remain available for transactions creating new titles (e.g. leases and transfers of part).
A guide to submitting a digital AP1 (including a video for an overview on using the new Digital Registration Service) can be viewed from here.
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019
On 14 February 2022, Secretary of State of the Department for Levelling Up, Housing and Communities, Michael Gove, announced proposals designed to pressure building developers and materials manufacturers to fund the remediation of unsafe properties.
Read more about our latest real estate update aimed at in-house lawyers practising in the property and real estate sector.
Read more about our latest real estate update aimed at in-house lawyers practising in the property and real estate sector.
When it comes to leases, most people believe that landlords hold most of the power. However, in relation to long residential leases, the tables may well have recently turned in one respect at least following a recent Supreme Court decision.
The Treasury Committee has just published its report on its inquiry into the administration of business rates in England and, at first glance, it could be the catalyst to drive the change that many businesses have been calling for.
A tenant who does not want to be forced to complete a lease if an obligation in the agreement for lease is breached must provide expressly for this in the agreement.