Due diligence—head lease use provisions—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert
Checklists

Due diligence—head lease use provisions—checklist


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Property expert

Checklists
imgtext

On any due diligence exercise on the acquisition of a leasehold property it is essential to consider the permitted use, any breaches of the permitted use and the ability of the tenant to change use. Any provisions that are unduly restrictive may have an adverse impact on value or the ability of the buyer to secure finance or dispose of their interest.

What is the permitted use?

If there is no specific restriction in the lease, the buyer will be free to use the property as they please. However, most leases provide that the tenant may only use the property for a specific purpose or purposes. The relevant clause of the lease should be checked and reported on to the buyer.

If the use permitted by the lease does not cover the buyer’s proposed use of the property, advise the buyer at the earliest opportunity. Consider making the purchase of the property conditional on the appropriate consent to the buyer’s use being obtained. The consequences for the buyer of using the property in breach of the permitted use are considered

Powered by Lexis+®
Jurisdiction(s):
United Kingdom

Popular documents

Template replies to CPSE 1 (version 4.0)—General pre-contract enquiries for all commercial property

Template replies to CPSE 1 (version 4.0)—General pre-contract enquiries for all commercial property transactionsWARNINGThese template replies to enquiries are intended only as a framework and starting point to assist the Seller in building their replies to enquiries. They are not a recommended,

Template replies to CPSE 4 (version 3.3)—Supplemental pre-contract enquiries for commercial leasehold

Template replies to CPSE 4 (version 3.3)—Supplemental pre-contract enquiries for commercial leasehold property on the assignment of the leaseWARNINGThese template replies to enquiries are intended only as a framework and starting point to assist the Seller in building their bespoke replies to

Report on title—long form

Report on title—long formProperty: [insert name and/or address of the Property] (‘Property’)Purchaser: [insert name, address and (if applicable) company registration number of buyer]Transaction: [insert brief details]1Executive summary1.1Scope of reportThis report is addressed to you [insert buyer’s

Carrying out bankruptcy searches at the Land Charges Department

Carrying out bankruptcy searches at the Land Charges DepartmentThe Land Charges Act 1972 (LCA 1972) provides for HM Land Registry to maintain:•a register of land charges•a register of pending land actions and pending actions in bankruptcy•a register of writs and orders affecting land and writs and