Commercial Property Focus - May 2009

Welcome to the latest edition of Commercial Property Focus, the quarterly newsletter from Weightmans. 

This issue includes an examination of the pitfalls in validly serving break notices; an overview of chancel repair liability and ways to protect purchasers of burdened land; obtaining landlord’s consent to assign and what will constitute unreasonable refusal of consent; the dangers of using letters of intent; and an examination of landlords’ rights to claim rent arrears from former tenants.

We are always keen to receive feedback from you so if there is anything that you would like us to comment on, questions you’d like to ask or topics that you would like to be discussed in our next edition then please let us know and we would be happy to consider these for our next edition.  Please email askproperty@weightmans.com because your views matter to us.

News and views

Head of Property, Clive Bleasdale, is getting feedback from clients in the investment property sector that the market may be reaching its bottom.  Activity, particularly with auction purchases of let investments, is good with clients perceiving it may be a good time to buy particularly where they have spare cash rather than requiring bank funding where availability remains tight.  If you would like to discuss our experiences and where we can help, please call Clive on 0151 242 7995.

A commercial property update breakfast seminar will take place at the Radisson Hotel in Liverpool on 1 July.  It will look at challenges facing property development projects as well as some topical commercial property problems and pitfalls. If you are interested in attending please e mail Hayley Gilroy to express your interest (hayley.gilroy@weightmans.com).

Take a break

Validly exercising break clauses can be a headache for tenants and landlords alike.  Critical time limits often have to be complied with or the opportunity to break the lease can be lost.  The recent case of Orchard (Developments) Holdings PLC v Reuters (2009) highlights the need for strict compliance with break clauses. Sian Evans, a partner in our Property Litigation team, examines.

The Holy Land

The ancient burden of chancel repair liability is a relatively unknown liability but can leave purchasers of land facing significant chancel repair bills.  So what is chancel repair liability and what can purchasers do to protect themselves against potential claims?  Stephen Whittaker, a partner in our Property team, explains.

Time to assign

Tenants generally need the consent of their landlord to assign their lease and such consent cannot be unreasonably withheld.  However, delays in responding to tenants’ requests can be deemed to be unreasonable refusal even though the landlord has given no formal response.  Peter McHugh, a solicitor in our Property team, discusses.

Letters of intent – use with caution!

Letters of intent can be a useful tool for contractors and other professionals in the construction industry to allow site access before formal contracts have been drawn up.  However, a recent case illustrates the dangers of proceeding on the basis of these letters.  David Tabinor, a partner in our Property team, considers.

Chasing the arrears

When can landlords claim rent arrears from former tenants?  In light of the long running case of Scottish & Newcastle Plc v Raguz, Karen Neald, a solicitor in our Property Litigation team, reviews.