Electricity generation and the legal considerations for landlords

Posted by Owen McKenna May 20th, 2011, in Property

In the current property market, property owners are looking to their assets to see how additional income can be generated without significant cost. One option is the lease of roof space for the installation of micro generation technology, such as a wind turbine or solar photovoltaic panels, to generate income under the Feed In Tariff (FIT). Below we look at some of the practical and legal issues to be considered when assessing the suitability of a building for a lease of this nature:

Where will the technology be sited and how will it connect to the National Grid?

The landlord needs to understand which parts of the building will be affected by the installation, for example where the cables will run, how many meters there will be, and how these will be used, monitored and measured. This highlights a number of legal considerations as I will discuss further on.

How will the tenant get the technology into position?

If a crane is needed, it may have to stand on third party land which will require the necessary consent to be obtained. Also consideration will need to be given to a crane licence. It’s worth noting too that the tenant may need similar on-going access for a crane to carry out maintenance work and as a landlord this may have to be offered on a guaranteed basis. (more…)

Chancel Repair Liability?

Posted by Owen McKenna Sep 21st, 2009, in Property

What is it?

Chancel repair liability is an ancient interest, and according to The National Archives, potentially benefits some 5,200 pre-Reformation churches in England and Wales.  It allows the Parochial Church Council (PCC) to require owners of former rectorial land (which does not need not be in close proximity to a church building) to meet the cost of repairing the church chancel.  It does not matter that the land may have been divided into many freeholds – each part of the land is potentially liable for the whole amount – and the liability passes with the land, regardless of whether the owner of the land knows of the liability or not. (more…)

Land Registry’s new Early Completion Policy

Posted by Owen McKenna Aug 17th, 2009, in Property

It’s not often that the Land Registry makes the news.  But the Land Registry’s “Early Completion Policy” has hit the headlines, at least as far as we conveyancers are concerned .Let me say at the outset I’m not here to attack the Registry, which is to a conveyancer half-way between an essential supplier and a very precious best friend. (more…)

Landlord and tenants – how clean is a clean lease?

Posted by Owen McKenna Jun 23rd, 2009, in Property

Landlords and tenants have always been able to agree a whole range of different deals for different circumstances
Even in the present market with lower rents and shorter terms on offer a lease of commercial premises, be it a shop, an office or an industrial unit is a transaction that both sides need to consider with care and proper advice… The lease is the Landlord’s document and it is designed to protect the Landlord’s income Sometimes you’ll hear the term a “clean lease”… It means the landlord gets clear income with no deductions from the rent for expenditure.  From the Landlord’s point of view that is important-. That is what his bankers will expect to see in place. (more…)

Wave goodbye to your right to forfeit

Posted by Owen McKenna Apr 12th, 2009, in Property

You only have to look at the high street and read the newspapers to see that the number of empty premises has increased and tenant administrations are on the rise.  Clearly, in today’s economic climate there are a number of new challenges facing landlords and tenants of commercial leases.  One such challenge facing a landlord is what to do in the event of tenant breach.

Forfeiture is a landlord’s right to re-enter the premises and determine the lease on breach by the tenant of its lease covenants or upon the happening of certain specified events.  The right is not automatic, it exists only where the lease expressly includes such a right.  Most commercial leases however will contain a clause thereby allowing the landlord to re-enter the premises on the happening of specified events. (more…)