Legal Practice Notes

Fire and building safety sit within devolved competence. In Scotland, the framework for non-domestic premises is principally set out in Part 3 of the Fire ( Scotland) Act 2005 ( F( S) A 2005) together with the Fire Safety ( Scotland) Regulations 2006, SSI 2006/456, which regulate the safe operation of non-domestic premises. Non-domestic premises include: all workplaces and commercial premises all premises to which the public have access all types of houses in multiple occupation The common parts of non-domestic premises do not fall within Scottish fire safety legislation. This is a notable distinction from England, where the Regulatory Reform ( Fire Safety) Order 2005, the equivalent regime, extends to the common parts of residential buildings. Building regulations set fire safety standards for new construction. However, building regulations requirements relating to fire safety lie beyond the ambit of this Practice...

Statute limits the amount that can be recovered from tenants of dwellings by way either of service charges (which include insurance rent) or administration charges In all instances, a landlord may recoup only what is reasonable, even if the lease states otherwise. The right to forfeit a lease for non-payment is also governed by statute, but falls beyond the scope of this Practice Note (see Practice Note: Statutory limitations on the landlord’s right to forfeit a long residential lease). Sections 18–25 of the Landlord and Tenant Act 1985 ( LTA 1985) set out the limits on, and reasonableness of, service charges, the ability to request a summary of relevant costs, and the implications of a change of landlord or an assignment, and they create an offence for failure to comply. These rules apply to all dwellings and cover all residential leases, except where LTA 1985, s 26...

What is a rent guarantee? A rent guarantee is a vendor’s inducement on an investment asset with unoccupied accommodation (eg a vacant store in a shopping centre or an empty floor within an office block). It can arise where a scheme is newly constructed and the developer has not placed tenants in every unit by completion, or where an existing unit becomes empty between exchange and completion. A rent guarantee might also be deployed if a tenant is not paying the full rent or has entered insolvency. It promises the purchaser a steady stream of rental income for the void space, effectively mirroring the rent that would have been payable if let. A seller may put a rent guarantee on the table when the premises are expected to let shortly after completion (eg there is an interested occupier or the space is in strong...

Introduction This Introductory Guide forms part of the Lexis Nexis Introductory Guides to Property. The series is intended to help apprentices, paralegals and others grasp both the transactions commonly undertaken by a property lawyer and the legal context in which those transactions take place. This Guide focuses on Property Finance. The other Guides in the series are: Introductory Guide to Commercial Property Introductory Guide to Land Law Introductory Guide to Property Development Introductory Guide to Property Taxes Introductory Guide to Residential Property All Guides come with a Glossary of Property Terms, offering definitions and, where suitable, explanations of many words and phrases that make up the everyday language used by property practitioners. Any terms shown in bold in this Guide are defined in the Glossary. Contents What is property finance? Who provides debt finance? Terms on which debt finance is provided What factors influence a lending...

The Tenant Fees Act 2019 ( TFA 2019), effective from 1 June 2019, bars landlords and letting agents from asking tenants of certain residential tenancies in England to pay charges other than those expressly permitted. In effect, a landlord’s agent may not levy fees for viewings, referencing, inventories, or any other item not specifically allowed. The Act also sets caps on the sums that can be taken as a security or holding deposit, as well as on certain other payments. Comparable legislation for Wales, the Renting Homes ( Fees etc) ( Wales) Act 2019 ( RH( Fe)( W) A 2019), took effect on 1 September 2019. It is not the same as TFA 2019; the key differences are identified below. Tenancies affected TFA 2019 applies to any ‘tenancy of housing in England’. A ‘tenancy’ means: before 1 May 2026, an assured shorthold tenancy ( AST) under...

What is a suspensive condition? A suspensive condition places the parties’ duties to perform a contract on hold until that condition has been purified (or, where the terms allow, waived), see Practice Note: Suspensive conditions in missives transferring Scottish property. Precision is essential; poor wording can trigger unforeseen and unwelcome outcomes. For further information, see: Suspensive conditions in missives: Stair Memorial Encyclopaedia [27]. Aside from dealing with title matters, most suspensive conditions concern non-conveyancing issues, for example: compliance with the relevant tax regime planning issues transfer of employees site investigations compliance with environmental law This Practice Note outlines universal considerations for drafting any suspensive condition and then addresses particular points relevant to commonly used suspensive conditions. Universal drafting considerations Who is to benefit from the suspensive condition? The condition must make clear which party is intended to benefit, otherwise it may operate to the...

Various issues can surface when land ceases to be used for agriculture, whether through disposing of it entirely out of farming or by diversifying operations within an ongoing farming business. Overage Developers (and others) continue to purchase agricultural land while holding short- or long-term aspirations of securing planning permission for residential or commercial schemes. The difference in value with, compared to without, such consent is pronounced. Accordingly, when acting for the seller, you should evaluate including an overage (sometimes referred to as ‘clawback’) arrangement in the sale contract, so the seller, or successors in title, can share in any uplift in the land’s value that arises once planning permission is granted. For further guidance, see Practice Note: Overage—advice to clients and Negotiating overage—acting for the seller—checklist. Sporting rights Agricultural land can be burdened by sporting rights (eg shooting and fishing) held by third parties, either...

What is a CVA? A company voluntary arrangement ( CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the...

Japanese knotweed locations Japanese knotweed occurs across most of the nation. It thrives even in poor-quality or polluted substrates, colonising fringe patches of wasteland in cities and running beside railway corridors. As the bulk of the plant sits underground, it requires only a tiny patch of exposed soil to send up new shoots. Its ability to exploit neglected margins makes it prevalent in built-up districts. See Practice Note: Japanese knotweed—management. The legal framework While there is no statutory duty to eradicate Japanese knotweed or notify regulators, its spread can give rise to civil and criminal exposure and can negatively influence the value, saleability and insurability of land. Civil liability A neighbour may pursue a common law action against a landlord or tenant where Japanese knotweed interferes with their enjoyment or harms their land. See Practice Note: Private nuisance—general principles. The advance of Japanese knotweed into adjoining land can also...

Environmental insurance provides a practical means to manage environmental risks, relevant to day‑to‑day operations as well as numerous transactions and development schemes. For more on environmental insurance in general, please see the following Practice Notes: Environmental insurance—when is it needed? Environmental insurance—extent of coverage Environmental insurance—types Environmental insurance—advantages and disadvantages Pollution legal liability insurance In a transactional setting, the pollution legal liability ( PLL) insurance product is frequently relied upon to address unknown liabilities that remain with a deal—for instance, where pollution is suspected but not identified. This offers the advantage of delivering financial confidence to......

When a charity plans to: mortgage (or re‑mortgage on revised terms) property it owns buy property with mortgage funding, or grant a charge to secure other liabilities the charity trustees must address several considerations and complete certain further steps. Here, ‘charity trustees’ means those who have overall control and manage the administration of the charity (for example, the directors of a charitable company or the officers of a charitable unincorporated association). Power to mortgage The charity must have authority to borrow and to charge its property as security for that borrowing. This authority may be expressly included in the charity’s governing document. If no express power exists, a sufficient power may arise: under the Trusts of Land and Appointment of Trustees Act 1996, s 6(8), which grants trustees of land ‘all the powers of an absolute owner’ (including the ability to borrow money and...

Ground rent ‘ Ground rent’ typically describes a modest or nominal sum payable under a long lease that has been granted for a premium. Ground rent is payable by the tenant to the landlord (most often yearly or bi-annually). It is distinct from a service charge and is not meant to reimburse the landlord for expenditure. Properties that can attract ground rent include houses and flats, as well as commercial land and buildings. From 30 June 2022, the Leasehold Reform ( Ground Rent) Act 2022 ( LR( GR) A 2022) limits the level of ground rent a landlord of an individual dwelling may lawfully charge a tenant under a ‘regulated lease’ (as defined in LR( GR) A 2022, s 1) (a Regulated Lease)—see: What is a ‘regulated lease’? For a Regulated Lease, ground rent is regarded as capped at the specified lawful...

Where a fixed charge receiver acts for the seller in disposing of a property, the overriding aim is a ‘clean deal’. This means that, on completion, both the receiver and the appointing mortgagee will know the exact sum due to the mortgagee after deducting sale costs and expenses, with no post-completion claims against: the receiver (and the mortgagee where the mortgagee is transferring the property—see Practice Note: Overreaching by a mortgagee) the net sale proceeds payable to the mortgagee This outcome is secured by transferring risk to the buyer and excluding the receiver’s personal liability. Sales information pack and pre-contract enquiries Buyers should recognise that, as the receiver is not the property owner and may have been appointed only recently, the receiver will hold very limited information about the asset. The position is especially challenging where the property is let and has been managed by the...

This Practice Note addresses how the court settles the provisions of a renewal lease under sections 32–34 of the Landlord and Tenant Act 1954 ( LTA 1954) where the parties fail to agree, covering the identity of the premises, the duration of the term, the rent due, and clauses including improvements, rent review and break rights, guarantors, repairing obligations, reinstatement and alterations, service charges, and rent deposits in dispute by either side. Court determination Where a landlord and tenant remain unable to agree the provisions of a renewal lease, either party may apply to the court to determine the terms pursuant to LTA 1954, s 24(1)......

STOP PRESS: ECCTA 2023 introduces identity verification for anyone submitting filings at Companies House—the reforms are expected to become compulsory in Spring 2026. For further information and indicative timing, see: Registering security at Companies House— Changes under ECCTA 2023. The scope of this Practice Note This Practice Note sets out how to register at Companies House charges created by the following entities: a company incorporated under the Companies Act 2006 ( CA 2006) (a ‘ UK company’), or a limited liability partnership incorporated under the Limited Liability Partnerships Act 2000 ( LLPA 2000) (an ‘ LLP’) This Practice Note should be read in conjunction with the following Practice Notes: Registering security at Companies House, and Problems with registering security at Companies House—what to do next For the purposes of CA 2006, Pt 25 ( Company Charges), the term ‘charge’ includes a mortgage;...

Works to trees Generally, operations to trees do not amount to development for the purposes of section 55 of the Town and Country Planning Act 1990 ( TCPA 1990), so planning permission is not normally needed (see Practice Note: Operational development). Nevertheless, TCPA 1990, s 197 places a duty on the local planning authority ( LPA) to: secure, where appropriate, that when granting planning permission for any development, adequate arrangements are made, via conditions, for the safeguarding or planting of trees; and make such tree preservation orders ( TPOs) as the LPA considers necessary in connection with granting that permission Accordingly, any tree works must accord with relevant planning conditions and, where trees are subject to a TPO, certain operations are prohibited without the LPA’s consent (see below: Protecting trees through tree preservation orders). In addition, TCPA 1990, s 211 (and...

This Practice Note explains the zero-rating of VAT for developers who sell or let dwellings they have built Why does zero-rating matter? Without zero-rating, the supply is typically exempt, meaning the developer is unable to reclaim VAT (ie input tax) on related expenditure, for example on professional fees and potentially on the site acquisition. For more details, see Practice Note: When can a person recover VAT? The building services provided during the construction of the dwelling will, in most cases, already have been zero-rated; see Practice Note: VAT treatment of building work. Where that is so, a developer who did not suffer VAT on buying the site may view zero-rating of sales and leases as advantageous, though not strictly necessary Why might zero-rating not apply? ......

Tax relief for expenditure on fixtures A taxpayer can often obtain tax relief for expenditure on fixtures by claiming plant and machinery allowances. For wider guidance on the availability of plant and machinery allowances in general, see Practice Note: Plant and machinery allowances—types and rates, and for further detail on how allowances are claimed and calculated, see Practice Notes: How plant and machinery allowances are claimed—income tax and How plant and machinery allowances are claimed—corporation tax. To qualify for allowances, expenditure on fixtures must satisfy the same conditions that apply to other categories of plant, together with additional rules that are specific to fixtures......

Note that this Practice Note concerns only trust property comprising an interest in land. Transferring assets to a trust Assets are placed into a trust when: the trust is brought into being, or the settlor contributes further assets to it, or the trustees acquire new property or settle trust assets on new trusts A trust may arise by will, or during the settlor’s lifetime. A lifetime arrangement can be made by: a self-declaration of trust by the existing owner of the land interest, or a transfer of the land to trustees to hold on trust which, either at the outset or later, is “manifested and proved by some writing signed by a person who is able to declare such a trust”: see section 53(1)(b) of the Law of Property Act 1925 ( LPA 1925). “ Writing” includes email: see Khan v Khan For the formal requirements when...

The Terrorism ( Protection of Premises) Act 2025 ( T( PP) A 2025) sets out fresh security obligations for qualifying premises and/or events across the UK, strengthening public safety and readiness for terrorist incidents. It obliges the ‘responsible person’ to establish public protection procedures and to take protective measures for those premises and/or events. The Act also revises disclosure rules for certain elements of licensing applications, with the aim of limiting publicly accessible information that could assist someone planning or committing terrorism. T( PP) A 2025 is anticipated to be implemented over a 24‑month transitional period (see When does T( PP) A 2025 come into force? below). Qualifying premises The Act employs a tiered framework for obligations and actions relating to qualifying premises, distinguishing between a ‘standard duty’ and an ‘enhanced duty’. Standard duty premises Premises are ‘standard duty premises’ where the following criteria are...