Regulation 7(5)
1.—(1) The parties to the tenancy, noting, where the landlord does not itself grant the tenancy, that the landlord is acting by the relevant local authority, including—
(a)the name and address of that local authority, and
(b)the fact that it is acting so as to bind the landlord rather than the authority under section 207(4) of the Act.
(2) The address, and where relevant unit number, of the premises, and a description of the premises.
(3) For the purposes of sub-paragraph (2), where the premises form part of a larger building, the premises—
(a)include—
(i)all plaster and other internal surfacing material and finishes on the structural walls, floors and ceilings of the premises and on the other structural parts of the building within or bounding the premises,
(ii)in the case of retail premises, the shop front, fascia and all doors, windows and door and window frames,
(iii)the plaster and other internal surfacing materials and finishes on any non-structural walls separating the premises from any common parts,
(iv)one half severed vertically of any non-structural walls separating the premises from any adjoining premises let or intended to be let for occupation,
(v)the entirety of any non-structural walls wholly within the premises,
(vi)all conducting media and landlord’s plant, equipment and fixtures within and exclusively serving the premises,
(vii)all tenant’s fixtures, and
(viii)any tenant’s works carried out to or at the premises, but
(b)exclude—
(i)all load bearing and exterior walls and the floors and ceilings of the premises, other than those referred to in paragraph (a);
(ii)all structural parts of the building;
(iii)all common parts;
(iv)in the case of office buildings, all external doors, windows and window frames;
(v)the entirety of any non-structural walls separating the premises from any common parts, other than those referred to in sub-paragraph (a)(iii).
(4) Where the premises form part of a larger building, a description of the building, with a plan of the building and approximately identifying the premises within the building.
(5) Where the premises do not form part of a larger building, a description of the building comprising the premises, and a plan identifying the building.
(6) The amount of the deposit payable, which must be the sum of £1,000 or a sum equivalent to three months’ rent, whichever is higher.
(7) The term of the tenancy, including the date on which the tenancy starts, and the date on which it ends.
(8) The yearly rent payable—
(a)a requirement for the first payment to be made on the rent commencement date, and to be a proportionate amount for the period from and including the rent commencement date to the last day of the month;
(b)the rent commencement date, which should be a date which is four weeks after the date of the tenancy.
(9) The permitted use of the premises.
2.—(1) Definitions of the terms used in the tenancy, including—
(a)subject to paragraph 3(b), a definition of “common parts”, as follows—
““common parts” means any amenities from time to time provided by the landlord for common use, any access routes, whether within or outside of the building but within the landlord’s ownership, any service roads and service areas and any fire escapes;”;
(b)a definition of “conduits”, as follows—
““conduits” means all pipes, wires, conducting media and their ancillary apparatus;”;
(c)a definition of “insured risk” which identifies all the risks the landlord is required to insure the premises against which may include any one or more of—
(i)fire;
(ii)explosion;
(iii)lightning;
(iv)earthquake;
(v)storm;
(vi)flood;
(vii)burst and overflowing pipes and tanks;
(viii)impact by aircraft and aerial devices and articles dropped from them;
(ix)impact by vehicles;
(x)subsidence;
(xi)ground slip;
(xii)heave;
(xiii)riot or civil commotion;
(xiv)malicious damage;
(xv)any other risk the local authority reasonably decides should be included as an insured risk.
(2) Where a party to the tenancy includes two or more people, the obligations undertaken by that party are undertaken by those people jointly and severally.
(3) A statement that—
(a)an obligation on the tenant’s part not to do something includes an obligation not to permit or suffer that thing to be done by another person;
(b)the consideration for any supply made by the landlord under the tenancy is exclusive of VAT;
(c)any reference to a working day means any day except Saturday, Sunday or a national public holiday in England and Wales.
3. Where the premises are a unit in a shopping centre, the definitions provided for in the tenancy must include—
(a)a definition of “the Centre”, as follows—
““the Centre” means those land and buildings known as [name of Centre] within title number [number of land registry title];”;
(b)a definition of “common parts”, to be used in place of the definition in paragraph 2(1)(a), as follows—
““common parts” means any amenities from time to time provided by the landlord for common use, any access routes, whether in the Centre, or outside the Centre but within the landlord’s ownership, any service roads and service areas and any fire escapes;”;
(c)a definition of “tenant’s plant” as follows—
““tenant’s plant” means air conditioning plant, wireless network equipment, television aerials and satellite dishes and other plant reasonably required by the tenant for the permitted use together with any conduits necessary to connect the tenant’s plant to the premises;”.
4. A statement that the landlord grants the tenant a tenancy of the premises, for the term provided for under paragraph 1(7) with the rights to be provided for under paragraph 5 except and reserving the rights provided for under paragraph 6.
5.—(1) Provision for the rights granted to the tenant, which appear to the local authority to be rights which—
(a)the landlord has the power to grant, and
(b)are necessary for the tenant’s use and enjoyment of the premises.
(2) The rights granted under sub-paragraph (1) may include any one or more of the following rights—
(a)the right to use the common parts, including any toilet facilities, for all proper purposes in connection with the permitted use of the premises including access to and egress from the premises;
(b)the right to use the conduits which are in other property belonging to the landlord and serve the premises in common with other property;
(c)the right to support and protection for the premises from the other parts of the building of which the premises form part;
(d)the right to park in any parking spaces within the car park available for the use of the premises, stating how many private cars belonging to the tenant or its employees may use that car park, and identifying the parking spaces available to the tenant on a plan;
(e)the right to deposit refuse in the refuse bins provided for the premises, in an area identified on a plan, or such other alternative area as may be designated by the landlord from time to time;
(f)the right to display the trading name and logo of the tenant on any sign or noticeboard provided by the landlord in the entrance hall to the building or in the common parts in each case in a form approved by the landlord;
(g)the right to enter the common parts so far as is reasonably necessary to carry out any works to the premises required or permitted by the tenancy;
(h)if the premises form part of a building and are in use as a restaurant, bar, public house, café or other establishment selling food or drink for immediate consumption, a right—
(i)to operate a fan and extraction unit, and
(ii)to connect into and use any common facilities provided for the purposes of fume extraction from the premises;
(i)where the premises consist of a unit in the Centre—
(i)the right to use service areas and roads within the Centre as are designated by the landlord from time to time for the purpose of deliveries and loading or unloading within defined service hours, or as otherwise agreed;
(ii)the right to install, retain, inspect and repair tenant’s plant on such areas in the Centre as are designated by the landlord from time to time.
6.—(1) Provision for the rights excepted and reserved by the landlord—
(a)the right to use, and connect to, the conduits forming part of the premises which serve, or are capable of serving, other property;
(b)the right, at reasonable times and on reasonable notice, but in case of emergency without notice, to enter the premises to—
(i)examine and record the condition of the premises,
(ii)inspect, repair, maintain or clean other property or conduits,
(iii)make good any default by the tenant,
(iv)exercise any rights under this tenancy,
(v)show prospective tenants and buyers around the premises, and
(vi)do any other reasonable thing in connection with the premises,
the landlord causing as little inconvenience as possible and making good without unreasonable delay any physical damage caused by the entry.
(2) The right to carry out works to other property, including erecting scaffolding attached to the premises but not, save in emergency, so as to prevent access to the premises.
(3) All light, support and any other rights enjoyed by any other property.
(4) The right to display a sale or letting board (within the last six months of the term of the tenancy) on the premises as long as it does not obstruct the tenant’s signage or window display.
(5) The right to—
(a)sell, as agent for the tenant, any belongings of the tenant left in the premises for more than five working days after the term of the tenancy ends, and
(b)keep the net sale proceeds, if the tenant does not claim them within six months after the term of the tenancy ending.
(6) Where the premises consist of a unit in the Centre, a right for the landlord from time to time to designate alternative areas over which the tenant’s rights, as provided for under paragraph 5(2)(a) and (i) may be exercised, to include service areas, common parts and tenant plant areas.
7. A requirement for the tenant—
(a)to pay to the landlord the rent specified in the particulars—
(i)by equal monthly payments in advance on the first day of each month and proportionately for any period of less than a month;
(ii)making the first payment as specified in the particulars provided for under paragraph 1(8);
(b)if required by the landlord, to pay the rent by banker’s order or BACS;
(c)not to claim or exercise any right to legal or equitable set off, or to withhold payment, of any amounts due to the landlord.
8. A requirement for the tenant—
(a)to pay to the landlord interest calculated daily from the due date to the date of payment at the rate of 2% per annum above the base rate from time to time of such UK clearing bank as the landlord may choose on—
(i)any rent (including VAT) which remains unpaid after the due date, and
(ii)any other amount payable to the landlord under the tenancy which is not paid within five working days after the due date, and
for these purposes, an amount must be treated as unpaid for any period during which there is a breach by the tenant of the terms of the tenancy and the landlord refuses to accept payment;
(b)to pay to the landlord—
(i)any VAT chargeable on the consideration for any supply made by the landlord under the tenancy;
(ii)where the tenant is to refund any payment made by the landlord, an amount equal to the VAT payable by the landlord, except to the extent the landlord can recover that VAT as input tax;
(c)to pay—
(i)all rates, taxes and other outgoings for the premises, except any tax assessed on the landlord for its ownership of, rental income from, or dealing with its interest in the premises;
(ii)all charges for the premises for electricity, water, telephone and other utilities;
(iii)a fair proportion of any rates, or other outgoings which are payable for any property of which the premises forms a part, as reasonably determined by a professionally qualified surveyor appointed by the landlord.
9.—(1) A requirement for the tenant to keep the premises clean, tidy and in no worse state of repair and decoration than that in which it is in as evidenced by the schedule of condition provided for under paragraph 28.
(2) The requirement in sub-paragraph (1) is not to apply in relation to damage by any risk which is required to be insured under the tenancy, save to the extent any insurance money is irrecoverable because of the tenant’s default.
10.—(1) A requirement not to alter or add to the premises, save that, subject to any provision which may be made under sub-paragraph (5) if applicable, the tenant may be permitted—
(a)to place on the exterior of the premises or building as the case may be a sign stating the tenant’s name and business, subject to the landlord’s approval of the sign’s design, size and position (such approval not to be unreasonably withheld or delayed), and
(b)without landlord consent to erect internal counters, shelving, partitioning, display cases and other shop-fittings and ancillary equipment in the premises subject to such items being removed by the tenant at the end of the tenancy with any damage made good.
(2) Subject to provision made under sub-paragraph (1), not to place anything (for example, any sign, telecommunications equipment, lighting or canopy) outside, or on the exterior of, the premises.
(3) In the event that the tenant wishes to undertake works that would not otherwise be permitted by provision made under this paragraph, provision for the tenant to supply all details of the proposed works, together with any other information reasonably requested by the landlord, to the landlord and to seek the landlord’s consent, such consent not to be unreasonably withheld or delayed.
(4) A requirement for any works undertaken by the tenant pursuant to provision made under sub-paragraph (3) to be removed and any damage made good at the end of the tenancy subject to any alternative direction made by the landlord and communicated to the tenant at least three months prior to the expiry of the tenancy.
(5) Where the premises have been fitted out for use as a public house, and can also be used for an alternative high-street use, provision that the tenant may not remove any dispense systems, bars, toilets, commercial kitchens or cellars located at the premises without the consent of the landlord, which consent may be refused at the landlord’s absolute discretion.
11.—(1) A requirement for the tenant to make good any failure to repair, clean or decorate the premises of which the landlord has given written notice to the tenant.
(2) A requirement for the tenant to start any work required under sub-paragraph (1) before the end of the period of one month starting on the date on which the landlord gave written notice under sub-paragraph (1), or sooner if required.
(3) A requirement that, if the tenant fails to—
(a)comply with provision made under sub-paragraph (1) or (2), or
(b)carry out the work diligently,
the tenant must pay on demand (as a debt) the cost to the landlord of carrying out the work.
12. A requirement for the tenant not to use the premises other than for the permitted use identified in the particulars of the tenancy under paragraph 1.
13. A requirement for the tenant—
(a)not to do anything inside or outside the premises which might cause a nuisance, damage or injury to the landlord or others;
(b)not to do anything which might overload the floors of the premises, or any conduits serving the premises;
(c)to take all necessary steps to keep the premises free from pests.
14.—(1) A requirement for the tenant not to—
(a)assign, sublet, hold on trust, charge, or
(b)part with or share the possession or occupation of,
the whole or any part of the premises save that the tenant may assign this tenancy with the prior written consent of the landlord (such consent not to be unreasonably withheld or delayed).
(2) In the event that the tenant wishes to assign this tenancy, a requirement for the tenant to—
(a)ensure all rent is paid up to date to the date of assignment;
(b)enter into an authorised guarantee agreement to guarantee the future performance of the assignee’s obligations where reasonably requested by the landlord.
(3) A requirement that, as soon as practicable following an assignment, the tenant must notify the landlord in writing and at the same time provide a true copy of the completed assignment.
15.—(1) A requirement for the tenant to comply with the requirements of any statute or law affecting the premises or its use.
(2) A requirement for the tenant, as soon as the tenant receives any notice affecting the premises from an authority, to—
(a)supply the landlord with a copy,
(b)comply with the notice, and
(c)make such representations about the notice as the landlord reasonably requires.
(3) A requirement for the tenant as soon as practicable to give written notice to the landlord on becoming aware of any defect in the premises.
16.—(1) A requirement for the tenant—
(a)to pay a fair proportion of the costs incurred by the landlord in insuring the premises in accordance with the landlord’s obligations in provision made under paragraph 25;
(b)to comply with all requirements of the insurers about the premises;
(c)not to do anything which could adversely affect any insurance policy covering the premises.
(2) Provision that, if the landlord fails to insure the premises in accordance with its obligations in this tenancy, the tenant may insure the premises for its full reinstatement value.
(3) A requirement for the tenant—
(a)to provide the landlord with a copy of the insurance policy arranged by the tenant under provision made under sub-paragraph (2) as soon as the insurance is arranged;
(b)at the direction of the landlord to terminate its cover, where the landlord places cover in accordance with its obligations in provision made under paragraph 25.
(4) Provision that—
(a)whilst the tenant is insuring the premises, the tenant—
(i)does not benefit from any exclusion in its obligation to keep the premises in repair where damage is caused by an insured risk, and
(ii)must arrange reinstatement of the premises as soon as possible following damage by an insured risk;
(b)provision made under paragraph 26 is not to apply when the tenant is insuring the premises.
17. A requirement that the tenant does not apply for planning permission for the premises save—
(a)in relation to signage and then only with the prior written consent of the Landlord (such consent not to be unreasonably withheld or delayed), or
(b)with the landlord’s agreement.
18. A requirement that at the end of the tenancy (however its ends) the tenant must—
(a)deliver all keys of the premises, and
(b)yield up the premises with vacant possession to the landlord and in accordance with the tenant’s obligations under this tenancy.
19. A requirement for the tenant, so far as possible, to—
(a)preserve all rights enjoyed by the premises, and
(b)help the landlord prevent anyone gaining any right over the premises.
20. A requirement for the tenant to pay on demand, the Landlord’s reasonable costs for—
(a)preparing and serving notices or proceedings under section 146 or 147 of the Law of Property Act 1925(1) (even if forfeiture is avoided);
(b)preparing and serving any schedule of dilapidations;
(c)the recovery of any arrears of rent or other sums due from the tenant;
(d)any application for the landlord’s approval (whether approval is granted or refused) except where the landlord acts unreasonably;
(e)remedying any breach by the tenant of the terms of this tenancy.
21.—(1) A requirement for the tenant to pay the deposit specified in the particulars of the tenancy under paragraph 1.
(2) Provision entitling the landlord or the landlord’s agent to hold the deposit as security against any loss to the landlord because of the tenant’s default in its obligations under this tenancy.
(3) After deduction from the deposit of any sums required to compensate the landlord for any default by the tenant of its obligations under this tenancy (which deduction the tenant irrevocably and by way of security authorises the landlord or the landlord’s agent to make), any balance remaining is payable without interest to the tenant within 14 days of the end of the tenancy.
22. An obligation for the tenant to comply with all reasonable regulations for the proper management of the premises as are made by the landlord and notified to the tenant in writing.
23. A statement that the landlord agrees that the tenant may peaceably enjoy the premises without any interruption by the landlord or any person claiming under the landlord.
24.—(1) Where the premises form part of a building larger than the premises, provision must be made for the cost of repairs to anything outside the premises which enables or facilitates the use of the premises in the form of one of the following options, as the local authority considers appropriate, taking into account any representations made by the landlord under regulation 8.
(2) An obligation for the landlord—
(a)to keep the remainder of the building in such state of repair as will not interfere with the tenant’s ability to trade from the premises;
(b)to carry out any repair necessary to comply with paragraph (a) as soon as reasonably possible on becoming aware of the need for the repair.
(3) The service charge is the tenant’s fair proportion of the cost to the landlord of providing the services (“the service expenditure”), reasonably determined by the landlord’s surveyor, which comprises—
(a)the costs reasonably incurred by the landlord in delivering the services;
(b)reasonable fees paid to managing agents or charged by the landlord for management of the building and, if the landlord provides the chartered accountant’s certificate mentioned in sub-paragraph (6), the chartered accountant’s proper fees;
(c)any other costs reasonably incurred by the landlord in carrying out works or providing services or amenities decided by the landlord in good faith in accordance with good estate management for the benefit of all the occupiers of the building.
(4) The tenant will pay to the landlord within fourteen days of demand and on no more than four occasions in each year, such sums on account of the service charge as the landlord or the landlord’s surveyor estimate in good faith.
(5) The landlord will give the tenant a detailed statement showing the service expenditure and service charge for the period (not being more than a year) since the start of the term or the date at which the last statement was prepared, and within twenty-one days from receiving that statement the tenant will pay any shortfall between the service charge shown on the statement and any sums paid on account under paragraph (4).
(6) The landlord must keep proper records of the service expenditure and in respect of each statement the landlord (at his election) must either give the tenant a reasonable opportunity to inspect the relevant records, invoices and receipts or give the tenant a certificate by a chartered accountant stating that the sums set out in the statement are supported by records, invoices and receipts produced to him.
(7) Any dispute concerning the service expenditure or the service charge must be referred to the decision of an independent surveyor to be appointed by the landlord and the tenant jointly or (in the absence of a joint appointment) at the request of either the landlord or the tenant by the President for the time being of the Royal Institution of Chartered Surveyors and the independent surveyor must act as an arbitrator in accordance with the Arbitration Act 1996(2).
(8) Provision for a service charge regime which is substantially similar to the service charge regime contained in—
(a)the landlord’s own leasehold interest,
(b)other leases of the building, of which the premises form part,
(c)in the case of a shopping centre, other leases of the Centre, of which the premises form part, or
(d)other leases of any adjoining premises in which the landlord has an interest.
(9) Where provision is made for a service charge in the form of option two, the tenancy must include a requirement that the landlord provides the following services for the premises as follows—
(a)whenever necessary (or when the landlord, acting in good faith, considers desirable) repair and where appropriate decorate the common parts, main structure, foundations, roof and exterior of the building (except for any shopfront or fascia which is the responsibility of any tenant) and any conduits which serve the premises in common with any other part of the building;
(b)clean the common parts;
(c)if the necessary installations exist at the date of this tenancy, provide during normal business hours hot water, lighting of the common parts, lift service and/or (when ambient temperatures so required) central heating;
(d)pay a fair proportion of the cost of repairing, maintaining and cleaning any party walls or structures and any roads, paths, yards and conduits serving the building in common with other premises,
and in this paragraph, “services” means the services provided by the landlord in fulfilment of this requirement.
25.—(1) A requirement for the landlord—
(a)to insure the premises or, where the premises form part of a building, that building against the insured risks in full reinstatement value with reputable insurers, and
(b)to arrange for the reinstatement of the premises or, where applicable, the building, as soon as reasonably practicable following damage by an insured risk.
(2) Provision that the obligation to reinstate does not apply where—
(a)a valid notice has been given under provision made under paragraph 26,
(b)the tenant is in breach of provision made under paragraph 16, or
(c)insurance against a particular risk becomes unavailable or available only at a cost which is unreasonable in the landlord’s opinion acting reasonably.
(3) A requirement for the landlord to give the tenant details of such insurance on request.
26. Provision that if the whole or a substantial part of the premises becomes unfit for use or inaccessible then—
(a)(unless any insurance money has been refused because of the tenant’s default) a fair proportion of the rent, as reasonably determined by the landlord’s surveyor, is to be suspended until access and fitness for use are restored, and
(b)the landlord or the tenant may end the tenancy by giving notice in writing to the other, in which case any insurance money will belong to the landlord, but the tenant is not entitled to end the tenancy if the tenant has caused the damage or vitiated the insurance.
27. Provision that the landlord may, by re-entering any part of the premises, forfeit the tenancy, but without prejudice to any other rights or remedies of the landlord or the tenant, if—
(a)any amounts are unpaid 14 days after becoming payable under the tenancy (whether formally demanded or not),
(b)there is a breach by the tenant of any term of the tenancy,
(c)the tenant suffers any enforcement by seizure of assets at the premises, or
(d)anyone takes any step whatsoever towards insolvency of the tenant.
28.—(1) A requirement that—
(a)as soon as reasonably practicable following the date of the tenancy, the tenant must undertake and finalise a schedule of condition;
(b)within 5 working days of completion of the schedule of condition to the tenant’s reasonable satisfaction the tenant must supply the landlord with a copy of the schedule of condition.
(2) Provision that, within 5 working days of receipt of the schedule of condition, the landlord may—
(a)give the tenant notice that the schedule of condition is final and binding for the purposes of the tenancy (in which case the parties must each sign a counterpart of the schedule of condition recording it and each attach a copy to the tenancy and counterpart), or
(b)give the tenant notice that the schedule of condition is not agreed as final and binding for the purposes of the tenancy (in which case the parties must follow the procedure provided for under sub-paragraph (4)).
(3) Provision that, in the event that the landlord fails to give the tenant any notice under sub-paragraph (2) then the schedule of condition will be deemed to be final and binding for the purposes of the tenancy.
(4) Provision that—
(a)if the landlord gives the tenant notice in accordance with sub-paragraph (2)(b), the parties must in good faith seek to agree such reasonable variations to the schedule of condition as soon as reasonably practicable within 10 working days (failing which either the landlord or the tenant may instruct the Independent Surveyor to prepare the schedule of condition),
(b)the schedule of condition prepared by an Independent Surveyor (including a decision as to the costs of the preparation) is final and binding for the purposes of this tenancy, and
(c)for these purposes, “Independent Surveyor” means an independent surveyor agreed by the landlord and the tenant or (failing agreement) nominated at the request of either party by the president of the Royal Institution of Chartered Surveyors or any person authorised at the relevant time to act on his behalf (either of whose nomination will be binding).
(5) An undertaking that the landlord and tenant will each provide reasonable assistance to the other to undertake and finalise the schedule of condition.
29. Provision that nothing in the tenancy impliedly grants to the tenant any rights other than those expressly granted by the tenancy.
30. Provision that nothing in the tenancy implies a warranty that the premises may be used for any purpose.
31. Provision that—
(a)section 196 of the Law of Property Act 1925(3) applies to all notices and documents relating to the tenancy;
(b)where the expression “tenant” includes more than one person, service on any one of them is to be treated as service on them all.
32. Provision that the parties to the tenancy do not intend any term of the tenancy to be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999(4) by any person who is not a party.
33. Where the local authority is granting the tenancy in the exercise of its powers under section 207 of the Act, provision that—
(a)the local authority has entered into the tenancy pursuant to its power set out in section 207(2) of the Act;
(b)pursuant to section 207(3) of the Act, the parties acknowledge and agree that the tenancy has effect as if it was entered into by the landlord instead of the local authority;
(c)the local authority is acting under section 204(4) of the Act in its own name but is acting so as to bind the landlord rather than itself;
(d)notwithstanding any other provisions in the tenancy, the local authority has no liability whatsoever arising out of or in connection with the tenancy or in respect of the performance of the obligations on the part of the landlord contained in the tenancy and the tenant acknowledges that no claims can be made against the local authority for any failures on the part of the landlord.
1925 c. 20 (15 and 16 Geo 5).
Section 196 was amended by paragraph 75 of Schedule 12 to the Postal Services Act 2011 (c. 5) and S.I. 2001/1149.