Commercial Property Focus - May 2010
Welcome to the latest edition of Commercial Property Focus; the
quarterly newsletter from Weightmans.
In this issue we look at assigning rental
income to lenders to help protect repayment of loans; the dangers
of appointing “non-expert” expert witnesses in litigation;
government measures to protect tenants when their landlords face
repossession; a recent Court decision on whether guarantors can be
forced to enter into AGAs; the risk of lenders losing guarantees by
varying underlying contracts; a recent Court ruing opening
the door for landlords to claim full rent for premises as an
expense of their tenant’s administration; and some practical tips
for negotiating commercial leases.
News and Views
We are always keen to receive feedback from
you so if there is anything that you would like us to comment on,
questions you’d like to ask or topics that you would like to be
discussed in our next edition then please let us know and we would
be happy to consider these for our next edition. Please email
askproperty@weightmans.com because your views matter to us.
Protecting Repayment - Assigning Rent to Lenders
David Tabinor, a
Partner in our Commercial Property team examines the way in which
lenders can protect themselves against defaulting landlords by
seeking an assignment of rental income.
I’m Not an Expert…Get Me Out of Here
Finding a good expert witness is crucial in
litigation and can make or break a case. Paul Donnelly, a Partner in our Construction team
looks at the importance of making the right choice and the dangers
of appointing “non-expert” experts in litigation.
Staying Put - Rights for tenants to stop eviction
The Government has introduced legislation to
protect tenants who are made homeless through no fault of their own
as their landlord faces repossession. David Tabinor, a Partner in our Commercial Property
team considers the current legal protections for tenants.
Guarantors May Reap the Benefits From Good Harvest Case
Sian Evans considers
the recent case of Good Harvest Partnership –v- Sentor Services in
which the Court held that, in an action for rent arrears brought
against the guarantor of an original tenant for the current
tenant’s failure to pay rent, a guarantor could not be forced to
enter into an AGA and, if they did, the agreement would be void and
unenforceable.
Can You Guarantee It? - A Warning to Lenders
Lenders are increasingly reliant on guarantees
to recover debts from borrowers. However, David Tabinor, a Partner in our Commercial
Property team warns lenders of the need to be careful not to
inadvertently release guarantors by varying the underlying
contract.
A Glimmer of Hope for Landlords When Tenants enter
Administration
A recent Court case has confirmed that
landlords can now recover full rent as an expense of tenant
administration where premises are being used for the benefit of the
tenant’s creditors. Angela Penn, a
Solicitor in our Property Litigation Team examines the recent case
of Goldacre (Offices) Ltd v Nortel Networks UK Ltd and the
impact for landlords.
Negotiating Leases
Clive Bleasdale, our
Head of Commercial Property gives some practical advice in
answering the question, “What information should be included in a
Commercial Lease?”