It is important at the outset when taking a Lease of a premises to agree key elements of the deal with the letting agent – these can then be captured in a Heads of Terms which are circulated to both the Landlord’s and Tenant’s solicitor. A Lease can then be drafted to incorporate what is contained in the Heads of Terms. The following are some useful elements to consider:-
- Term
Agree a term, and whether there is a break option in favour of the Tenant or Landlord, or both
- Vat
Consider whether vat arises on the rent
- Use
Agree on the permitted user of the premises, which should be allowed under the planning of the premises
- Security Deposit/Guarantee
If a company is taking a Lease consider whether a personal guarantee is to be provided, and if so seek to agree the term of the guarantee. Alternatively consider whether a security deposit is suitable
- Rent Free Period
Consider if a rent free period is to apply
- Alterations
Does the Tenant wish to carry out any alterations to the premises, seek to agree same at the outset
- Alienation
Consider whether a Tenant can sub-let/assign a part of the premises or whether this is prohibited so that the premises can only be sub-let/assigned in it’s entirety
- Repair Obligations
Consider the extent of the repair obligations, whether internal or also external, agree a schedule of condition to append to the Lease to document the condition of the premises at the time of entering into the Lease
For more information on this topic, please contact Godfrey Hogan on godfrey@gibneyhogan.ie
