Holmes Mackillop welcomes changes to commercial lease terminations
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Amir M Ismail
Holmes Mackillop’s director in commercial property, Amir M Ismail, has welcomed the introduction of the Leases (Automatic Continuation etc) Bill into parliament.
Presently at stage 1, the Bill will change the way in which commercial leases in Scotland can be terminated towards the end of the term.
Ismail, one of only seven Accredited Specialists in Commercial Leasing in Scotland, and who tutors in residential and commercial property at the University of Glasgow, has been following the Bill carefully for some time.
“For many years of my working life, I have had to break the bad news to several clients that the failure to serve a Notice to Quit at least 40 days prior to the specified termination date means the lease has automatically continued for another year,” he said.
“This is particularly difficult to accept for my clients that are based south of the border, because English law does not have the same requirements.”
Ismail said that the proposals put before parliament now provide for the notice period to terminate to be at least three months instead of 40 days and leaves the parties free to either include the automatic continuation (known in legal circles as tacit relocation) or to include wording to say they do not wish for it to apply at all.
He added: “The flexibility provided by the Bill will be a welcome source of clarification for a topic that has produced some very uncertain and unwelcome consequences for tenants. For landlords, the extension of the period of notice will also now enable an earlier dialogue for dilapidations, as leaving the renewal discussions or dilapidations to be ironed out in the last 40 days was nowhere near enough time.”