lease by reference

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    lease by reference

    I have been leasing a commercial property to a very good tenant, his lease has ended and i wish to renew it with a form renew a lease by reference which I believe is the simplest and cheapest way of doing it. Can this form be downloaded from the internet or is it a solicitor job?

    #2
    Like a lot of legal drafting, a lease by reference is straightforward if the case is straightforward and you know what you are doing. There are points to watch and traps for the unwary.

    Ideally, on a "renewal" the opportunity should be taken to review the terms of the lease to see if they are up-to-date and otherwise satisfactory. Whilst care should be taken with the drafting of any legal document, the higher the rental value the more critical it is to get the lease right. A lease of a lock-up shop in a back street does not need to be as sophisticated as a lease of a supermarket in a shopping centre.

    If the premises do not have a high rental value and the original term was, say, 3 or 5 years without any review or an index linked rent and the same again is needed, the situation is probably a candidate for a lease by reference. In other cases it is a question of going though the lease and noting anything which needs to be changed. If the changes (apart from rent and start and end date) start to mount up it is probably better to have a new form of lease; a renewal lease does not want to be more than a couple of pages long.

    Traps for the unwary include those associated with dates, in particular the dates for any review of rent. It is always best, if there are to be reviews, to expressly set out what the review dates are.

    In short, many cases are suitable for a lease by renewal, but it is necessary to proceed with caution and not treat the matter as routine.

    If you are going to go it alone, it is best not to rely on any precedent you find online, but to go to a large library and find a precedent in a book.

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      #3
      Thank you, your advice is much appreciated.

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