The RICS have prepared and issued a lease specifically designed for use by tents and landlords of smaller retail units following responses by new start-up businesses to the cost and time in preparing and drafting leases and to complaints that they can be too wordy and complicated.
Two versions of the SBRL have been prepared, one for inclusion with the LTA 1954 and one to exclude the lease from these provisions.
In summary the SBRL will include provisions as follows;
- A maximum leased term of 5 years. (avoids rent reviews and registration of the lease).
- No rent review (therefore at renewal the rent can go up or down).
- The lease is all inclusive (no provision for service charge)
- The lease allows for a tenancy deposit (similar to residential leases)
- Repairs are referenced to a schedule of condition
- Rent can be paid monthly
- Fixed (no ability for change of use)
- Provision for a lease break at an agreed time.
- Disputes to be settled via ADR using the RICS route
By making leases more transparent and cheaper it is hoped that landlords will find it easier to let difficult units, professional fees will be lowered, lease disputes reduced and business will find it more attractive to let small retail units. The team at RPS support the RICS is their goals and will recommend to their clients the use of the SBRL.
If you feel that the opportunity for letting a small retail unit is for you, if you have a lease expiry due within the next 12 months and are seeking quality professional advice then contact the team at RPS.