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Use
It is vital that the permitted use is appropriate but there is an interlink here between the width of permitted use and an open market rent review clause (if one applies): the more exible the use the land can be put to, the more valuable the lease and so potentially the higher the rent on an open market rent review. For example, in the case of a property leased to a school, the use of the property is likely to be restricted to “the operation of a Roman Catholic school”
Assignment/ underletting
In some cases the tenant may be permitted to transfer the bene t of the lease to a third party, or allow a third party to take occupation of part of the site. It is critical again to know who could take the bene t of the lease and who could be occupying as underlease. Particularly important where the charity is landlord
Alterations
If the parties need to anticipate physical changes to the property then either as landlord or tenant it is borne to bear what the extent of rights are as to who is responsible for such alterations and to what extent a tenant needs approval before making any alterations
ARE THERE DIFFERENT LEGAL PROVISIONS FOR DIFFERENT TYPES OF PROPERTY?
The answer to the above question is a strong yes. It is important that religious institute charities recognise the different context they can nd themselves in.
Religious institutes themselves using land are a non-standard user type as they often look like being residential users (a Convent is the home of those within the Convent). But in law they are usually viewed through the charitable use
as being within the “business tenancy” regime (with its security of tenure and compensation provisions). You therefore need to understand whether your property is viewed as residential or business.
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