On 16 June 2021, the government announced that the restrictions on commercial forfeiture for unpaid rent arrears has been extended until 25 March 2022. The restrictions, which have been in place since 26 March 2020, were due to be lifted on 30 June 2021....
Everyone is familiar with the concept that when you buy a property you initially enter into a contract to buy it and then complete the purchase at a later stage. Similarly an agreement for lease is used where the terms of a lease have been agreed but completion of the lease will not occur immediately. So instead of a contract followed by a transfer you have an agreement for lease followed by the completion of the lease.
Both the agreement for lease and lease are negotiated at the same time and once both documents are agreed the agreement for lease is exchanged and then the lease is completed in accordance with the terms of the agreement for lease.
However an agreement for lease is not used as frequently as a contract to purchase land as usually once a lease is agreed the parties proceed straight to the completion of it. There are however circumstances where the parties may decide to enter into an agreement for lease, this is often when the completion of the lease is conditional upon outstanding matters.
If you would like to speak to a specialist commercial property solicitor about an agreement for lease please call us on 01616 966 229.