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Questions on short leases

Do you have less than two years to run on your lease?  Whose consents do you need if you are a sub-tenant, to renew? What do you need to do if you are going to renew?  Are you completely sure that you are secure under the 54 Act?

These are but a few of the Lease related issues you have to consider and at the same time, run your business.  We hope to give you some insights into these issues over the next few newsletters.

So, let’s consider the first issue.  Your lease is coming up for renewal and you have the right to renew under the 1954 Act, but, whose consents are required for the granting of the renewal? Will you need the agreement of the Superior and the Head Lessor?

If the Head Lessor’s lease ends before your renewal term ends – you will need the Superior Landlords consent.  If the terms of your under-lease state specifically that you need the Superior Landlord’s consent, then you will need to get it.  Note, if the terms of the renewal are substantially the same the Superior Landlord’s consent cannot be “unreasonably” withheld.  Remember, the onus is on the Landlord to prove he has been reasonable.

Just a closing thought for this short piece; if asked to contract out of the protections of the 54 Act, to be valid this must be done before the lease is agreed or entered.  I will write more on the form and effect of contracting out in later newsletter.  We wish you success in your businesses.

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