PART 4Market rent only leases
Process for offering an MRO lease 16
1
The tied-pub tenant may request an MRO lease from the pub-owning business in writing and the request must include—
a
the tenant’s name, postal address, email address (if any) and telephone number, and
b
the name of the tied pub in relation to which the request for an offer of an MRO lease is being made and its address.
2
The pub-owning business must make the tenant an offer of an MRO lease—
a
in writing as soon as possible and in any event within a period of 4 weeks beginning with the day on which the tenant’s request was received by the pub-owning business,
b
which complies with the requirements set out in paragraph (3).
3
The conditions referred to in paragraph (2) are that the offer of an MRO lease must—
a
include a draft deed of variation, or a draft lease where the tenant consents to a new lease being offered,
b
provide for a new rent.
4
When making an offer of an MRO lease, a pub-owning business must—
a
provide information about any assumptions, disregards, information or sources of information used to calculate the proposed rent, and
b
advise tenants to take independent advice on the terms of the MRO lease.
5
Following the offer of an MRO lease there is to be a negotiation period during which the pub-owning business and the tenant are to use their best endeavours to agree terms and enter into an MRO lease as soon as possible.
6
The negotiation period is to last no longer than a period of 8 weeks beginning with the day on which the offer of an MRO lease is received by the tenant.
7
The negotiation period may be extended by up to 4 weeks by agreement between the pub-owning business and the tenant.
8
The pub-owning business and the tenant are to meet their own legal costs in connection with entering into an MRO lease.