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Summary Agreement for Lease - Advanced Commercial Property
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5. AGREEMENT FOR LEASE (A4L) Usually required where one party has to do something before lease is completed
LL’s solicitor (LLS) drafts A4L and lease itself before sending to T’s solicitor (TS) to approve
Usual to make A4L subject to SCPCs – consider whether these need to be modified
AGREED FORM LEASE
Form negotiated from the outset and will be attached to the A4L
May be certain terms and clauses only capable of determination on completion of the lease
o E.g. commencement date and exact level of rent
If premises built from scratch then final plans may need to be produced on completion to
define exact boundaries
A4L can come at any stage but better to be signed up in the planning and construction
phase – anchor tenant enters into A4L and provides the draw
CONDITIONALITY
A4L may be conditional on some other event happening e.g. obtaining PP or carry out env.
survey/clean-up
Common condition = A4L conditional on surrender of an existing lease at the premises
taking place
TERM
Parties decide at negotiation stage when the ‘Term’ is to commence e.g.
o On the day the lease is granted
o On the day T occupies premises (if prior to grant of lease)
o On a specified date e.g. quarter day prior to grant of lease
Important because it affects when the lease ends and can be linked to date on which rent is
to be paid and the rent review date
DEPOSIT ON EXCHANGE
If premium paid on grant of lease (rare except in long leases) – it should be decided
whether deposit needs to be paid on exchange
o Short-term commercial lease = rare
REGISTRATION
, A4L = estate contract = can be protected by:
o C(iv) central land charge against LL’s name (if LL’s interest is unregistered)
o Notice on the charges register of the LL’s title (if LL’s interest is registered)
o Notice at the Land Registry – either agreed or unilateral notice
AGREED NOTICE
Registrar at Land Registry may only approve app if 1 or more of the following applies:
o Applicant is the registered proprietor OR is entitled to be so registered;
o Registered proprietor or person entitled to be so registered consents to notice entry;
o Registrar is satisfied as to validity of applicant’s claim
A4L must be lodged in support – open to public inspection (unless successful app to make
it an Exempt Information Document)
Made using FORM AN1
Exempt Information Document (EID)
Since LRA 2002 – any doc submitted to LR has been available for public inspection unless
app to make it EID
App made where doc contains info prejudicial to applicant i.e. commercial interests
Registrar designates EID if satisfied app is not groundless and designation will not
prejudice the keeping of the register = risk Registrar will reject and info becomes public
App made by submitting FORM EX1 + EX1A (sets out reasons supporting the app)
o Must have edited version of doc attached which must be certified as a true copy
save for info deleted (to the extent it protects confidentiality
Exemption status personal to applicant – change of ownership = B asks S to withdraw
UNILATERAL NOTICE
Does NOT require registered proprietor’s consent or Registrar to approve claim’s validity
Vulnerable to an app being made by registered proprietor for its cancellation
Unless there are specific provisions included in the contract/agreement, it offers less
secure protection than agreed notice
Entry must only give such details as the Registrar considers appropriate – not necessary to
lodge the A4L
Made using FORM UN1
WHICH TO USE?
Parties should consider level of security each offers + amount of info that must be given to
Registrar + whether they wish docs to be available for public inspection
Parties may wish to keep info confidential for commercial reasons – LL more than T usually
o If letting market slows down, LL may have to offer heavy incentives e.g. rent free
periods – if kept confidential, LL can avoid any adverse effect on rent review
In practice = A4L usually noted by unilateral coupled with contractual obligation from LL not
to cancel the notice until lease is completed/A4L is terminated
o Preserves confidentiality of A4L + secures protection
AGREEMENT PERSONAL TO TENANT
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