Commercial Property Focus - February 2009

Welcome to the first edition of Commercial Property Focus; the quarterly newsletter from Weightmans. This bulletin will focus on giving you key information on topical issues in the property sector as well as offering some practical guidance on the implications of legal developments and how they affect you. Whether you hold and manage a property portfolio or offer funding there’s something of interest for everyone – whatever sector you’re in.

This issue includes an examination of a seller’s ability to retain deposits following aborted sale transactions; an overview of options available when a tenant or landlord is in financial difficulties; the pros and cons of adopting the Code for Leasing Business Premises 2007; the enforceability of oral tenancies; options available to tenants requesting an alteration to payment arrangements; some implications of the changes to the Companies Act 2006.

News and views

What happens when commercial tenants default? Landlords need to know the options available to recover rent arrears from defaulting tenants or third parties. This was a topic the team presented recently to members of RICS Matrics. The presentation also covered dealing with other breaches of covenant by the tenant, including repairs and dilapidations, the pros and cons of different methods of forfeiture and its future and break clauses. If this is an issue that is affecting you, or you’d like more information then we would be delighted to talk to you simply email us at askproperty@weightmans.com and one of our team will call you.

Planned for the early summer is a commercial property update in both Liverpool and Manchester venues. Full details will be available in due course. If there are any issues you’d like us to cover or questions you’d like to ask us then just email us at askproperty@weightmans.com  so our seminar adds real value to your working day.

In a difficult market we know that many of our clients need support and find value in the sharing of information and experiences; if there is anything that you’d like to comment on, questions you’d like to ask or topics you’d like to be discussed in our next edition then we want to include them, this newsletter is all about giving you what you want. Please email askproperty@weightmans.com because your views matter to us.

Forfeiting buyer deposits

How does recent case law affect the ability of sellers to retain deposits when buyers fail to complete? What impact does Section 49 of the Law of Property Act 1925 have in light of recent cases? Karen English a solicitor in our property practice discusses.

The code for leasing business premises 2007

What are the pros and cons for landlords in adopting The British Property Foundation Code for Leasing Business Premises? Launched March 2007, the code aims to provide guidance for negotiating business Leases.  Matthew Williamson an associate in our property team provides an overview.

The struggling tenant and insolvent landlord

Are you a landlord faced with tenants in financial difficulty? Are you a tenant whose landlord is struggling to survive the credit crunch? Angela Penn a solicitor in our property litigation team looks at options available to you.

Enforcing oral tenancies

Are you a landlord struggling to find long term tenants for your properties? Then you may be considering letting property on a temporary basis and you may even be considering an oral tenancy – but are these legally enforceable? Ian Larkins a solicitor in our property litigation team looks at their enforceability by looking at three recent Court of Appeal cases.

Room for maneouvre?  When rent terms can be varied?

More and more retailers are seeking changes to their rent payment arrangements. But what happens when tenants want to secure changes to rent payments when landlords refuse to be flexible? Clive Bleasdale, head of property looks at this issue.

Directors beware!

October 2009 will see dramatic changes in the law affecting companies, following implementation of the Companies Act 2006.  The changes seek to simplify many day to day company procedures.  Lynne Rathbone highlights the main issues that directors and shareholders need to be aware of and warns directors of the new statutory duties applying to directors once the new changes come into force.