Changes to the ADLS 6th Edition Deed of Lease that help the landlord:
Tag Archives | Leases
The government’s measures to increase their tax take through the targeting of the property industry looks set to continue. First we had the erosion of depreciation, followed by the changes to loss attributing qualifying companies. Now the government is proposing to change the way it taxes lease inducement payments.
The sight of the ADLS Fifth Edition 2008(2) commercial lease can bring a feeling of both comfort and familiarity. The ADLS is widely used and understood and is often seen as the form of lease that can ‘get the deal over the line.’ It is generally regarded as a fair lease, and not significantly weighted in favour of either the landlord or the tenant.
The right of a lessee under a commercial lease to quiet enjoyment is implied in the majority of leases. The implied covenant is a limited guarantee that the lessee can occupy the premises without interruption or disturbance from the lessor, or persons through whom the lessor derives title or persons who claim through the lessor.
At this time of year with Christmas trading and summer there may be lessors who are approached by lessees requesting a change to their trading hours. Leaving aside resource management restrictions, retail leases commonly give the lessor an unqualified right to approve any modification in trading hours.
A lessor must tread very carefully when considering the position of a lessee who has not yet exercised its right to renew the lease. The Property Law Act 2007 assists a lessee by providing relief in two situations where a right of renewal would otherwise be lost:
What is happening in Christchurch is impacting on the New Zealand property industry in all sorts of ways. One of these is the debate regarding contractual obligations between the parties. Most leases inadequately deal with the situation in Christchurch. Whilst they may deal with partial destruction and total destruction they do not adequately cover many of the circumstances that have arisen in the cordon area.