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Early Access To The Property

Once the parties have reached basic agreement on the terms of the new Lease, it may take some time to complete the formalities.  Delays are likely if the new Lease is a sub-Lease and the head Landlord’s consent has to be obtained, or the Landlord may require other third party consents prior to being able to grant the Lease.

In these circumstances both the Landlord and the Tenant may want the Tenant to take up occupation before the Lease can be completed.

It is not advisable for the Landlord to allow the Tenant to take up occupation, unless both parties have signed an agreement for Lease clarifying the position regarding the Tenant’s occupation of the Property.

Further the Tenant would not be well advised to take up occupation and incur costs, such as removal costs and fitting out costs, until it is certain that the Lease will be granted.  The position regarding triggering a potential Land Transaction Tax/Stamp Duty liability would also need to be considered.

 

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