Page 132 - Demo

Break clauses
Again connected with the last items, are there to be break clauses for landlord or tenant? A break clause is a provision that enables either landlord or the tenant to bring the lease to an end earlier than would otherwise be the case. For example, in a 20 year lease you might include a right to terminate after ve years. If there are, these ought to be carefully crafted as the law looks at them very closely to make sure they were really meant to be involved because they are so powerful. They can often be used where leases can often be personal
Rent and rent review
Self-evidently this is a key nancial term and needs to be very clear. There are varieties of rent review method
Service charge
This is another key nancial term and often less clear: as tenants it is very often important to consider whether a cap is needed on service charge. Again, there is lots of legislation governing what can and can’t be done in relation to service charge and this is particularly important for charities where they are landlords letting for residential purposes
Insurance
Vital that appropriate provision is made for insurance of the property (who bears at whose cost with what responsibilities)
Repair
Another key nancial element of a lease and there are traps that the unwary can fall into here. In particular, is the property supposed to be returned to the landlord in the same state as it was received in? If so the repair clause is likely to need to be modi ed
128 Chapter 7