A record of the condition of premises at the commencement of a lease. Usually appended to the lease and referred to in the Repairing and Yielding Up covenants to limit the tenant's liabilities - typically to repair, keep and give back the premises in 'no better than' the condition than that evidenced by the schedule. Limits the tenant's exposure to various items of repair during the lease, and its dilapidations liability at lease expiry.

This is a list of outstanding repair and maintenance items (that a landlord has assessed) that have 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 'Terminal' Schedule of Dilapidations. The tenant is obliged to carry out the outstanding works listed in the schedule, or pay damages which represent the cost to the landlord of doing the works.

The Scott Schedule is a document that enables the parties to compare their respective positions in relation to the landlord’s original schedule of dilapidations. It comprises a series of columns in which each party sets out its response to the opposing party’s contentions.

Section 18 is a reference to Section 18 of the Landlord and Tenant Act 1927. The Act is split into two parts or ‘limbs’. The first limb S 18(1) provides that the damages recoverable for breach of the repairing covenant, may not exceed the diminution in value of the landlord’s reversionary interest. The second limb S 18 (2) that a landlord may not recover damages where it intends to demolish or carry out structural works to the property that render the tenants repairs valueless.

The Landlord's Notice at lease renewal under the Landlord & Tenant Act 1954 procedure. Cannot be served less than six nor more than 12 months before the lease expiry date. Must confirm whether renewal of the lease is opposed or unopposed and on what terms the landlord is willing to offer a new tenancy.

The Tenant's Notice at lease renewal under the Landlord & Tenant Act 1954 procedure. Cannot be served less than six nor more than 12 months before the lease expiry date. Must confirm the terms which the tenant is seeking for the renewal of its lease.

The sections of Part II of the Landlord & Tenant Act 1954 (as amended) which govern Security of Tenure. Section 24 deals with the Continuation of the Tenancy after the contractual expiry date, including the rules relating to interim rent payable during the continuation or 'holdover' period. Sections 25-27 deal with the Notices which must be served to either renew, oppose renewal, or end the tenancy by Tenant's Notice to Quit. Section 28 deals with the agreement of future 'reversionary' leases.

The protection (security) afforded to tenants of commercial premises by Part II of the Landlord & Tenant Act 1954 at the end of their lease.

A service charge is payable by a tenant for services provided by the landlord for the repair and maintenance of common parts, such as lifts, reception areas and the external structure of the building. The service charge usually includes managing agent’s fees. It is normally collected quarterly in advance, at the same time as the rent. A service charge payment can be capped in order to limit a tenant’s financial liability. The RICS has developed a Service Charge Code of Practice to improve standards and promote consistency, fairness, transparency and best practice in the management and administration of commercial property service charges.

Property with trading potential, such as hotels, fuel stations, restaurants or the like, the market value of which may include assets other than land and buildings alone. These properties are commonly sold in the market as operating assets and with regard to their trading potential. Also called property with trading potential.

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 cannot be adduced as evidence of the transaction unless adequately stamped. The rate applicable is set by Central Government and varies depending upon the value of the transaction.

A lease will generally include for covenants relating to the tenant’s or landlord’s obligations to comply with statute or regulations.

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 unexpired period of the superior lease. If a tenant attempts to sublet the property for a period equal to, or more than, the unexpired period of their own lease; this operates as an assignment of the term and not as a sub-letting.

Is a term used as a provisional agreement before contracts are exchanged where either party can withdraw from the transaction.

See Material compliance.

Uses that do not fall within any particular Use Class, including theatres, houses in multiple occupation (where not C4), hostels providing no significant element of care, scrap yards, petrol filling stations and shops selling and/or displaying motor vehicles, retail warehouse clubs, nightclubs, launderettes, taxi businesses, amusement centres and casinos. The change permitted is from casinos to D2.

Supersession is the process by which a landlord’s actual or intended future works to a property render of no value a tenant’s repairs. This is used as a defence to the landlords claim.

A legal mechanism whereby a Lease may be brought to an end before its Contractual Expiry date. Often linked to the grant of a fresh Lease (aka Surrender and Regrant transactions) and associated with Lease Regearing, but also where the Landlord and Tenant simply agree an early exit from the contract (Lease). For example, to permit redevelopment, or where the Tenant has marketed its interest and the replacement tenant requires a longer term than that available by assignment of the existing Lease.