Commercial Property Law Update 2023

KEY SUBJECTS

• CASE LAW UPDATE – IMPLICATIONS FOR PRACTICE
• MEES – COMMERCIAL PROPERTY DISPUTES FOR THE DECADE
• DILAPIDATIONS: THE LAW & THE REALITY
• CURRENT LEGAL ISSUES IN PROPERTY MANAGEMENT
• AROUND THE WORLD OF LANDLORD AND TENANT INSOLVENCY IN 2023
• WHAT COMMERCIAL REAL ESTATE PROFESSIONALS NEEDS TO KNOW ABOUT THE BUILDING SAFETY ACT 2022

SPEAKERS

Bryan Johnston, Partner and Head of Real Estate Litigation at Dentons

Ben Strange, Director, Mobius Building Consultancy Ltd

Emma Humphreys, Partner, Real Estate Disputes, Charles Russell Speechlys LLP

Mark Shelton, Commercial Property Management Law Trainer

Stephen Allinson, Solicitor and Licensed Insolvency Practitioner, Non Executive Former Chairman of the Board of The Insolvency Service

Emma Broad, Managing Practice Development Lawyer, Dentons

CONFERENCE PROGRAMME

09.30am CHAIRMAN’S INTRODUCTION

CASE LAW UPDATE – IMPLICATIONS FOR PRACTICE

This talk will round up the most important and relevant legal cases impacting on commercial property in recent months. The law is constantly evolving, so it is vital to stay on top of key decisions of the Court that are relevant to commercial property professionals. This talk will cover key developments in:

• Service charges
• Nuisance
• Tenancies at will
• Implied terms
• Knotweed
• Break Notices and much more

Bryan Johnston, Partner and Head of Real Estate Litigation at Dentons

MEES – COMMERCIAL PROPERTY DISPUTES FOR THE DECADE

The impact of the ‘MEES Regulations’ has become a sharp reality to commercial property stakeholders, with the realisation that the minimum standard of ‘B’ by 2030 is more than a rumour and the stark impact of the change in EPC assessment in June 2022 leading to many assets becoming non-compliant far earlier than anticipated.  In this talk, we will look at how the MEES Regulations are playing out in reality in the commercial leasehold market and the several and significant sources of potential dispute ahead over the course of the decade as MEES continues to bite harder.

• Lease renewals – does MEES apply?  What impact does the 1954 Act have?
• Tenants works – can a landlord reasonably refuse consent to tenant works if they impact the EPC?
• Service Charge – Can a landlord include EPC improvement works within a service charge claim?
• Rent Review – If a subject property is incapable of lawful letting, can a rental increase be justified?
• Landlord statutory compliance – a tenant’s claim for breach of covenant against the landlord (alienation and elevated utility bills).
• Dilapidations – MEES, supersession and diminution: a feeding frenzy for disputes.

Ben Strange, Director, Mobius Building Consultancy Ltd

DILAPIDATIONS: THE LAW & THE REALITY

Dilapidations disputes are covered by both detailed and complex legislation as well as the Dilapidations Protocol.  But what do the rules mean in practice and how are most claims conducted by the parties and their advisers?  This talk will look at the law as well as how claims are managed on the ground, together with some interesting insights into enforcing repair obligations during the term of a lease. Topics covered will include:

• Early issues to consider: standard of repair, reinstatement of alterations, establishing breach
• Preparing and responding to a claim: complying with the Dilapidations Protocol
• Section 18 issues
• Options for exploring settlement
• Interesting cases on specific performance

Emma Humphreys, Partner, Real Estate Disputes, Charles Russell Speechlys LLP

CURRENT LEGAL ISSUES IN PROPERTY MANAGEMENT

The management of commercial property seems only to get more challenging.  This talk addresses three specific areas of difficulty and interest.

Structuring transactions so as to permit downsizing – occupiers increasingly want to build in flexibility to reduce space in future, and this needs some care.  Points covered will include:

• Technical issues with side-by-side leases, and options to break as to part
• Apportioning rent and reinstating alterations
• Implications for rent review and guarantors

Repurposing, mixed-use developments, and the law of nuisance – the Tate Gallery case illustrates that the categories of nuisance are not closed, and with residential uses increasingly thrown next to commercial uses, conflicts will arise.

• ‘Coming to the nuisance’ – will it always prevent claims?
• Squaring nuisance with the operation of the planning system
• Can a landlord be responsible for nuisance committed by its tenant?

What’s wrong with lease renewals? – with the Law Commission about to review Part II of the Landlord and Tenant Act 1954, it is a good time to look at some current problems:

• Assessing rent on renewal – why can’t it be the same as a rent review?
• What are the options for dispute resolution?
• How could contracting-out be improved?

Mark Shelton, Commercial Property Management Law Trainer

AROUND THE WORLD OF LANDLORD AND TENANT INSOLVENCY IN 2023

Property insolvency continues to make the headlines this year and this session will bring you up to date with the latest law and practice. Areas to be covered will include:

• The state of the market now and for the immediate future.
• Company Voluntary Arrangements in the property world – how can landlords best protect themselves?
• Restructuring Plans – a new regime to get used to.
• Rising from the corporate ashes again – is that legal?
• Liquidation and Disclaimer of Assets – understanding rights and responsibilities.
• Post Insolvency – is that the end of the road for recoveries?

Stephen Allinson, Solicitor and Licensed Insolvency Practitioner, Non Executive Former Chairman of the Board of The Insolvency Service

WHAT COMMERCIAL REAL ESTATE PROFESSIONALS NEEDS TO KNOW ABOUT THE BUILDING SAFETY ACT 2022

The Building Safety Act 2022 (the Act) is described in the latest version of the CPSEs as one of the most far-reaching pieces of real estate legislation this century. While tempting to think the Act only impacts residential high-rise property, it has implications for commercial real estate too. This session will examine why commercial property practitioners need to be aware of the Act and provides an overview of some of the key provisions including:

• The gateway regime and golden thread principles for higher-risk buildings
• Changes to building control applicable to all properties
• The duty holder regime and in-occupation regime, including the roles of accountable person and principal accountable person
• The requirements to register higher-risk buildings
• The leasehold protections of Part 5 of the Act placing limits on the remediation costs that can be recovered via service charge
• The Responsible Actors’ Scheme

Emma Broad, Managing Practice Development Lawyer, Dentons

5.00pm CLOSE OF PROCEEDINGS