|
Word(s) |
Meaning |
|
agents fees |
if you are selling or renting out a
commercial property using an agency you will
be responsible for payment of their fees.
Fees are commonly 10% of the annual rental
achieved (in the case of a letting) and
between 0.5 and 2% in the case of a freehold
sale. If you are seeking commercial you
might also employ an agency. They will
locate suitable premises, advise you
generally and deal with negotiations on your
behalf. In this case you the buyer (or
tenant) would pay agency fees on a similar
percentage basis |
|
agreement for lease |
a preliminary (and simplified) legal
document that commits a landlord and a
tenant to entering into a lease on agreed
terms at a future date (which is usually
contained in the document). Often used in
the case of new buildings that have not yet
been constructed. |
|
alienation |
the subject of how a tenant is allowed to
dispose of a property held on a lease. The
alienation clause will detail whether a
tenant may sub-let part or all of a property
and if they can assign the lease to another
party. |
|
arbitration |
they way in which many lease disputes are
decided. A third party (usually an
arbitrator or surveyor with arbitration
qualifications) will consider the written or
verbal submissions of both landlord and
tenant and award a decision binding to both
the parties. |
|
assignee |
a new tenant who has agreed to have an
existing lease transferred to him by its
current holder (assignor) |
|
assignment |
the act of transferring a lease from one
tenant to another |
|
assignor |
the holder of a lease who has agreed to
transfer it to another tenant (the assignee) |
|
bank guarantee |
an extra financial security against
non-payment of rent and other property
charges often put forwards by new businesses
when acquiring commercial properties for the
first time |
|
bonded or serviced storage |
warehousing where your storage is managed by
a third party in their building. Often quite
expensive but very flexible |
|
break clause |
a clause built in to a lease permitting
either the landlord or tenant (or both) to
terminate the lease on a certain date
usually by giving written notice in advance |
|
buildings insurance |
a policy which cover the landlord against
damage, destruction and loss of rental on
the building. The tenant is normally
responsible for reimbursing the cost to the
landlord |
|
business rates |
taxes charged by local authorities to cover
the cost of providing local services |
|
costs and outgoings |
the total expenditure for a property that a
tenant is obliged to pay incuding elements
such as rental, local taxes, service
charges, insurances, annual repair budgets,
managing agents fees, one-off charges |
|
covenant |
has two relevant meanings. 1. any term or
clause contained in a lease which the
landlord and tenant are binded to. 2. The
financial standing of the tenant. For
example "the property was let to a tenant
with good covenant (strength)." |
|
dilapidations |
repairs to the property that have not been
attended to by a tenant in accordance with
the provisions of the lease. |
|
estate charges |
often levied when the property is located on
an estate rather than as an individual unit.
Estate charges cover things like on-site
security, estate roads maintenance,
lighting, rubbish collection, landscaping,
cleaning, communal water, etc. |
|
exclusive possession |
when an occupier has 100% occupation of the
whole of the property. No rooms, kitchens,
toilets are shared with any other party. |
|
fixtures and fittings |
can be defined as landlord's or tenant's
fixtures and fittings. Landlord's F & F are
usually not structural/non material parts of
the property which are present at the start
of the tenancy I.e. office partitions,
fitted kitchette, air conditioning units,
carpets. Tenant's F & F are things that the
tenants may have added at their cost. It is
recommended that the tenant has a list and
proof of its own fixtures and fittings and
obtains permission to add them to the
property if required to do so under the
lease |
|
freeholder |
the ultimate owner of the property (not
necessarily the landlord who may in fact
have a lease from the freeholder) |
|
General Development Order |
an act of parliament which relaxes certain
planning restrictions of smaller commercial
properties. One benefit being that certain
industrial buildings can convert larger
amounts of their floorspace over to office
purposes without the need for applying for
planning permission |
|
gross external square footage (metreage) |
the way in which factories and warehouses
used to be measured for comparison and
marketing purposes. It involved taking
measurement OUTSIDE the external walls |
|
gross internal square footage (metreage) |
the generally accepted way of measing
factories and warehouses by combining
measurement taken between the INTERNAL faces
of the walls. |
|
holding over (following lease expiry) |
if a lease has expired by the tenant is
still in occupation of the property, this is
called "holding over". He may be protected
from eviction by the Landlord and Tenant Act
1954 and/or negotiating the terms of a new
tenancy |
|
independent expert |
a third party often called on to determine
lease disputes, especially rent reviews |
|
intermediary landlord |
sometimes a party can be both landlord and
tenant. For instance they may have a lease
by then "sub-let" to another tenant. This
party is an intemediary landlord. |
|
landlord |
a party with a beneficial interest in a
property to whom a tenant pays rent |
|
landlords fixtures |
Landlord's F & F are usually not
structural/non material parts of the
property which are present at the start of
the tenancy I.e. office partitions, fitted
kitchette, air conditioning units, carpets |
|
lease |
a legally binding contract between a
landlord and a tenant which sets out the
basis on which the tenant is permitted to
rent a property. |
|
lease renewal |
the negotiated process of granting a new
lease, between a landlord and tenant
following expiry of a lease or tenancy
assuming both the landlord and tenant
following the expiry of an old lease |
|
legal costs |
the costs incurred by both landlords and
tenants solicitors usually in connection
with the granting of a new lease. Often
includes |
|
licence |
several meaning. 1. a simplified Lease often
for a short period. 2. a legal agreement
supplemental to a lease. |
|
licence to alter |
a legal document setting out agreement which
permits the tenant to make alterations to
the landlords property |
|
light Industrial |
and industrial uses that is considered
fairly compatable with residential
properties being located close by |
|
listed buildings |
Often buildings of historical interest that
are protected from redevelopment and in many
cases external and internal alteration. |
|
mezzanine |
a floor constructed between main structural
floor. Often built within warehouses as an
additional storage platform. |
|
net internal square footage (metreage) |
the method by which conventional office
buildings are measured. It takes into
account only useable floor space and
excludes stairways, lobbies, thickness of
walls, etc. |
|
option to determine |
a clause in a lease that allows either a
landlord or tenant or both to end a lease
prior to its expiry date. |
|
periodic tenancy |
Often an "unwritten" tenancy that has come
into being after an informal rental of a
property has taken place for a period of
time |
|
planning permission |
permission that must be obtained from a
local authority prior to commencing
development of land or property. Also covers
what a property can be used for. |
|
quiet enjoyment |
a landlord's lease obligation allowing the
tenant occupation and benefit of the
property without hinderance on the part of
the landlord. |
|
rate in the £ |
the National rate that is applied to each £1
in a property's rateable value. This is the
multiplier which calculates each individual
business rates bill. |
|
rateable value |
a notional value placed on a property by the
Government's Valuation Office. This allows
the local authorities to calculate the
correct level of business rates to charge to
the property occupier to cover local
services |
|
reinstatement |
if a tenant alters the property he will
often be obliged to reinstate it to its
former state at the landlord's request
generally at the end of the lease |
|
rent free period |
an period (usually at the commencement of a
tenancy) where a tenant does not have to pay
rent. Often agreed either as an inducement
or in lieu of the tenant carrying our some
agreed works to the building |
|
rent review |
the periodic procedure of reviewing the
rental under a lease. By negotiation between
landlord and tenant. In the absence of
agreement it is often decided by an
Arbitrator or Independent Expert the
additional cost of whom is shared or
apportioned between the parties. |
|
rental deposit |
a bond paid by a tenant to a landlord
against non payment of rental and/or other
outgoings. Often held in a separate account
and returned after an agreed period of time. |
|
rental payment (frequency thereof) |
under lease, traditionally quarterly
(December, March, June, September). Usually
tenants rental pay in advance |
|
repairing obligations |
The responsibilities in a lease of both the
landlord and tenant governing repairs |
|
retaining (an agent) |
to instruct an agency to find a commercial
property and to handle its negotiations and
acquisition on your behalf. |
|
Royal Institution of Chartered Surveyors |
The professional body of Chartered Surveying
- The property profession. |
|
schedule of condition |
an agreed record of the state of a property
at the commencement of a tenancy. |
|
schedule of dilapidations |
a list of repairs that a landlord considers
that the tenant is obliged to carry out in
accordance with the terms of a full
repairing lease. Often served at the end of
a lease. |
|
serviced offices |
offices often in small suites or individual
rooms where the tenants al share facilities
and equipment I.e. telephone answering, fax
machines, photocopying, meeting rooms. |
|
stepped rental |
an agreed basis of paying rental usually at
the start of a tenancy whereby the rental
increases gradually over a period of weeks,
months or years |
|
sub-letting |
the act of granting a sublease |
|
sub-tenancy |
a lease granted by an existing leaseholder |
|
subject to contract |
a condition of an offer which can later be
made binding by agreement, memorandum,
licence or lease |
|
suis generis |
a particular use of a property which does
not fall directly into any single group in
the Town and Country Planning (Use Classes)
Order 1987. |
|
survey |
an inspection and report on a building's
structure and condition |
|
tenancy |
the basis on which a property is being
rented (not necessarily a lease) |
|
tenancy at will |
a simplified agreement that allows a tenant
to occupy a property on a very temporary
basis - capable of being revoked without an
notice |
|
tenant's fixtures |
Tenant's F & F are things that the tenants
may have added at their cost. It is
recommended that the tenant has a list and
proof of its own fixtures and fittings and
obtains permission to add them to the
property if required to do so under the
lease |
|
Town & Country Planning (Use Classes) Order |
The act of parliament which sets out all the
alternative uses for commercial and
industrial properties and groups them
accordingly |
|
unitary development plan |
plans drawn up by local councils which set
out which parts of their area are identified
as being capable for development and in what
ways development plans might be allowed |
|
user clause |
a clause in a lease which sets out what the
tenant is permitted to use the property for |
