Legal pitfalls to avoid when surrendering a lease

One lingering consequence of the pandemic is that many tenants are locked into commercial leases of properties that they no longer require. The need for physical retail outlets has been seriously impacted by the growth of online shopping as has the demand for office space as working from home remains a reality for many office…

Overseas Entities and property transactions in the UK

The Register of Overseas Entities under the Economic Crime (Transparency and Enforcement) Act 2022 commenced on 1 August 2022, but the changes to the Land Registration Act 2002 were delayed until 5 September 2022. This delay was implemented to allow those engaged in current transactions to comply with the new overseas entity registration requirements at…

No change in VAT rules for dilapidation payments – but be careful

HMRC has always treated dilapidation payments as compensation from a tenant to the landlord, for not returning the property in the condition it should be, according to the lease agreement being terminated. Importantly, these compensation payments were not subject to VAT. In September 2020, HMRC stated it was considering this long-held view, with a mind to combine…

London Trocadero (2015) LLP v Picturehouse Cinemas Ltd

The government’s recent announcement, that it intends to introduce a binding arbitration scheme for commercial landlords and tenants dealing with the issue of rent arrears following the COVID-19 crisis, has been seen by many as a blow to landlords. This promise of arbitration, combined with the existing restrictions on the actions open to landlords, makes…

Ground Rents – What does Countryside Properties’ withdrawal of fees mean for leaseholders in the UK?

Countryside Properties has become the latest housebuilder to announce its intention to scrap the “unfair” contract terms that saw the ground rents of its leaseholders double every 10 to 15 years. The move comes following increasing pressure from the Competition and Markets Authority (CMA) who launched enforcement action against four major housing developers, including Countryside, back in…