UK law property management practice Essay Example | Topics and Well Written Essays - 3250 words

UK law property management practice - Essay Example Consideration of alternative market leases, general and specific situational advantages and disadvantages analysis of such alternative forms of leases in the market A lease in UK law pertains to the granting of exclusivity in land possession for a term that is well-defined and for a term that is shorter than that for which the grantor of the lease has himself or herself has legal land possession. As the definition implies, there are three aspects to the lease. The first has to do with the exclusivity of the possession. The second has to do with the fixed nature of the lease in terms of time. The third is that the term of the lease has to be shorter than the lawful time to which the grantor of the lease has possession of the land (In Brief 2013). Taking a step back, the Crown in theory has ownership of all land in the UK, and that other persons usually hold either a lease on the land, or else has a freehold relationship with the land, which is the strongest form of land ownership unde r UK law, outside of the Crown’s absolute ownership of all land (In Brief 2013b). ... he leaseholder in this sense becomes a tenant too in the definition of the law, meaning that within the terms of a legally binding lease agreement, the tenant is the recognized land owner under the law. In this sense, as owner of the land, he is able to legally make use of the land as other owners of the land do, with the caveat that those uses for which the land is made use of by the owner is within the confines of the requirements set forth by statutes. On the other hand, rights extend only so far as the owner of the lease has the right to occupy the land absolutely, until the leaseholder does not fulfill the contractual obligations, such as in instances when the leaseholder fails to make good on rent payments. Outside of this, the grantor of the lease is unable to end the lease before the date of expiration or the end of the period of tenancy, except with the serving of a notice strictly ruled by fixed and specified conditions. On the other hand, the institutional lease is said to be the cornerstone of commercial property law and the market for such leases in the UK. This is characterized by long terms, usually a quarter of a century, and is, as specified above, FRI type leases, meaning that they are full repairing as well as full insuring. Due to the integrity and predictability of such leases, with the rent reviews being done predictably too, every five years for the lease duration, these have become investible from the point of view of institutions such as pension firms as discussed above. Here the returns are predictable and guaranteed to a certain extent, as long as the tenants make good on their rent payments and their other related contractual obligations to the land and property (Mleyshon n.d.). That the institutional lease has become the foundation of