Tip of the Week: Thinking outside the box
Published 1 February 2016
If you are asked to provide your consent to tenant alterations, make sure you check whether the works are all within the tenant's demise. It's not uncommon for a tenant to require access to, or need to install plant or media within an area outside its demise.
In such cases several important considerations should not be overlooked:
- How will the works be treated on rent review? Will it be assumed that the hypothetical tenant will have the benefit of them or will they be disregarded? Does the existing lease sufficiently cover this, or will it have to be dealt with separately under licence?
- If new plant is to go in a basement or on the roof of the building, you will want to ensure there are 'lift and shift' provisions.
- Will the lease need to be formally varied to grant new rights to the tenant, such as rights of access to the external works? In a multi-let building you will also need to ensure those new rights do not interfere with other tenants.
Clarity at the outset will protect your position in the future.