A Lease and Licence Agreement is commonly used in England and Wales when a property arrangement requires both exclusive possession and specific usage rights. This document is particularly relevant when the occupier needs both security of tenure through a lease and specific permissions through a licence. The agreement typically includes detailed provisions about property occupation, rent, maintenance, insurance, and permitted activities. It's especially useful in situations where the traditional lease structure needs to be supplemented with additional rights or permissions, such as in shared workspaces or mixed-use developments.
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Key Requirements PROMPT example:
Lease And Licence Agreement
"I need a Lease and Licence Agreement for a retail unit in a shopping centre, with a 5-year term starting from January 2025, including specific provisions for both shop premises and external seating area, with quarterly rent payments and an annual service charge."
1. Parties: Details of the landlord and tenant, including registered addresses and company numbers
2. Background: Context of the agreement and brief property description
3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, Permitted Use
4. Demise: The actual grant of the lease and its term, including commencement date and duration
5. Rent and Payment Terms: Rent amount, payment dates, and review provisions
6. Tenant Covenants: Obligations of the tenant including repair, use, alterations, and compliance with laws
7. Landlord Covenants: Obligations of the landlord including quiet enjoyment and insurance obligations
8. Insurance Provisions: Insurance requirements, cost allocation, and reinstatement provisions
9. Termination: Events of default, forfeiture provisions, and consequences of termination
1. Break Clause: Optional termination rights allowing either party to end the lease early under specific conditions
2. Service Charge Provisions: Details of service charge calculation and payment for multi-let properties
3. Alienation Provisions: Rights and restrictions regarding assignment, subletting, and sharing occupation
4. Alterations and Improvements: Provisions governing tenant's rights to make changes to the property
5. Security Provisions: Requirements for rent deposits, guarantees, or other forms of security
1. Schedule 1: Property Description: Detailed description of the premises including plans and measurements
2. Schedule 2: Rights Granted: Specific rights granted to the tenant such as access, parking, and utilities
3. Schedule 3: Rights Reserved: Rights retained by the landlord including access for inspection and repair
4. Schedule 4: Rent Review: Detailed rent review provisions, methodology, and assumptions
5. Schedule 5: Service Charge: Detailed service charge provisions, included services, and calculation methods
6. Schedule 6: Permitted Use: Detailed description of permitted use of premises and any restrictions
7. Schedule 7: Condition Schedule: Schedule documenting the condition of the property at the start of the lease
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