Virtual Conference: Commercial Property Law Update 2021: Recorded 19th October

KEY SUBJECTS

• RENEWAL TERMS AND THE 1954 ACT: GOOD NEWS FOR TENANTS FROM RECENT CASES?
• EXERCISING TENANT’S BREAK RIGHTS: LESSONS FOR LANDLORDS AND TENANTS
• DILAPIDATIONS – PLANNING FOR A SUCCESSFUL OUTCOME FOR BOTH LANDLORDS AND TENANTS
• TURNOVER RENT AND INCLUSIVE RENT – MOVING AWAY FROM THE RACK-RENT, CLEAR LEASE
• PROPERTY INSOLVENCY CASE LAW UPDATE – JUMP ABOARD THE ROLLER COASTER
• PLANNING: ‘BUILDING BACK BETTER?’

SPEAKERS

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

Richard Kay, Partner, Beckett and Kay

Henrietta Hammonds, Partner, Beckett and Kay

Mark Shelton, Commercial Property Management Law Trainer

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

Kavan Gunaratna, Barrister, Enterprise Chamber

Ian Anderson,  Senior Director, Lichfields

PROGRAMME

9.30am CHAIRMAN’S INTRODUCTION

RENEWAL TERMS AND THE 1954 ACT: GOOD NEWS FOR TENANTS FROM RECENT CASES?

The Landlord and Tenant Act 1954 gives commercial tenants statutory rights to renew their leases. But what terms should tenants be seeking to change, and how far can landlords look to modernise? This session will look at recent case law – including ‘post covid’ cases – to draw out practical help for those advising both tenants and landlords including:

• Repair and service charge clauses “to improve energy efficiency” – why these are crucial to manage: lessons from WH Smith v Commerz; Poundland v Toplain
• Rent cesser clauses – are they now “something that all tenants want”?
• Tenants’ break rights: when, how, and conditions: Iceland; Vodafone
• Rent, interim rent and the ‘covid’ effect: S Franses v Cavendish – back before the courts

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

EXERCISING TENANT’S BREAK RIGHTS: LESSONS FOR LANDLORDS AND TENANTS

Many tenants are understandably concerned to reduce their rental outgoings in today’s economic climate. Knowing whether and how a break clause can be operated is imperative whether you advise tenants seeking to break, or landlords looking to keep the rental stream intact.  This practical session will draw together lessons from recent, and established, case law:

• Can your client use the break clause? Original tenants, tenants at law and other problem areas
• Rental and other lease payments: must they be made, how much and when?
• What should the break notice say, how should it be served, and what happens if it goes wrong?
• Vacant possession and fixtures: Has Capitol v Global (2020) changed the rules?

Sarah Thompson-Copsey, Non-Practising Solicitor, Legal Lecturer and Trainer

DILAPIDATIONS – PLANNING FOR A SUCCESSFUL OUTCOME FOR BOTH LANDLORDS AND TENANTS

This talk will look at what both lawyers and surveyors can do – individually and working together – to reduce the chances of a dispute, or, if a dispute is unavoidable, maximise the client’s prospects of the best possible result:

• Start before the lease is even signed:
  • Alterations and reinstatement provisions
  • Schedules of condition (not the golden ticket they might seem)
• Before lease expiry:
  • The importance of open dialogue
  • Taking account of the landlord’s intentions
  • Putting the right team together
  • Should you do the work? Balancing the risk
• After lease expiry:
  • The Protocol – a useful framework
  • Doing what’s right for the investment
  • The landlord’s works
  • Possible futures of the property
• If the worst should happen:
  • Valuation issues
  • Some important cases

Richard Kay, Partner, Beckett and Kay

Henrietta Hammonds, Partner, Beckett and Kay

TURNOVER RENT AND INCLUSIVE RENT – MOVING AWAY FROM THE RACK-RENT, CLEAR LEASE

Tenants increasingly look for alternatives to traditional rental arrangements, and in practice this often means turnover-based rent, or inclusive rent. Both challenge landlords’ expectations, but have plus points for investor as well as occupier.  Both mean looking again at other terms of familiar lease forms. This talk will consider both types of arrangement critically; points covered will include:

• Does turnover-based rent have to be a complex arrangement?
• Adapting familiar lease provisions to accommodate turnover terms
• How can a turnover rent arrangement capture future retail innovations?
• The case for doing without a tenant’s repairing obligation
• How new lease forms accommodate the demand for greater flexibility

Mark Shelton, Commercial Property Management Law Trainer

PROPERTY INSOLVENCY CASE LAW UPDATE – JUMP ABOARD THE ROLLER COASTER

The battleground between commercial landlords and commercial tenants has been one of the key themes of the last 12 months and has occupied many column inches in the business pages nationally. This talk will look at the latest cases and ascertain if any principles have been established, and  also consider practical steps that can be taken if you are advising in this arena. It has been a fast ride for property professionals for sure!

• CVAs – an abuse of process or a key tool for tenants?
• Restructuring Plans – the new CVA or not?
• Tenant Administration – the end of the road for the landlord?
• Dissolution of the tenant’s company – what does that mean?
• Directors Duties when a company becomes insolvent

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

Kavan Gunaratna, Barrister, Enterprise Chamber

PLANNING: ‘BUILDING BACK BETTER?’

The Queen’s Speech in May 2021 announced a radical overall of the planning system which will be brought forward over the next 12-18 months.

At the heart of these far-reaching proposals will be a revolution in plan making, greater community involvement and the digitisation of the planning system, alongside additional new Permitted Development Regulations and further changes to the Use Classes Order. We are also likely to see greater ‘top down’ influence in targets for housing, a greater focus on the delivery of bio-diversity and potentially new ways of calculating Community Infrastructure Levy and S106 contributions.

This streamlining of the planning system is intended to deliver faster and more certain decisions, but will it? This session will explain:

• A Summary of the Changes expected through in the proposed reforms
• The potential implications of a new ‘zonal-led’ planning system
• The further permitted development and prior approval regime expected
• Further predicted changes to the Use Classes Order

Ian Anderson, Senior Director, Lichfields

5.00 pm CLOSE OF PROCEEDINGS