Property/Leases

When setting up a social enterprise it is realistic to consider that you will require premises and a decision will be made by the members as to whether to lease or buy a property. The process of purchasing a property is called conveyancing and cannot be completed without a Solicitor. Alternatively you may wish to lease the property if funds are not available to facilitate a purchase. The law of leases is governed by statute and common law. A lease is essentially a contract therefore contract law applies also. Leases can take many forms must contain the following elements: -

1. The parties (named and designed with an address so that they may be identified). They must be separate people.
2. The subjects must be adequately described so that they are identifiable
3. The rent payable must be clearly defined
4. The duration of the lease

The parties to a lease have rights and obligations and this is determined by common law. The tenant is obliged to occupy and use the property for the purposes for which it was let. The tenant has an obligation to take reasonable care of the property and pay the rent when it becomes due. The tenant must plenish the property. The landlord must place the tenant in full possession of the property and must not deviate from the conditions set out in the lease. The property must be reasonably fit for the purposes for which it was let. The landlord is obliged to carry out repairs.

If you require any further information or advice on the formation of leases or you would like a lease drafted do not hesitate to contact us.