The Royal Institution of Chartered Surveyors (RICS) has released a consultation on the Code for Leasing Business Premises.
RICS, alongside major industry bodies including the Law Society, is developing new mandatory requirements to ensure businesses of all sizes gain fairer, flexible leases.
RICS collaborated with leading commercial property professionals and industry bodies – including British Property Federation, British Retail Consortium, Federation of Small Businesses and the Law Society – with the aim of producing balanced recommendations that reflect the needs and opinions of both landlords and tenants.
RICS state that the aim is to ‘improve the quality and fairness of initial negotiations on lease terms and to promote the issue of comprehensive heads of terms that should make the legal drafting process more efficient’.
The lease code and heads of terms are intended to be used as a checklist for negotiations before the grant of a new lease and the renewal of a lease. If there are any departures from the lease code landlords need to make this clear.
The lease and heads of terms are further supported by an occupier guide. The intention is that the occupier guide should be used to allow landlords, tenants and guarantors a clear understanding of their obligations.
The consultation will close at midnight on Thursday 12 April. Please respond if you undertake commercial property work.