Friday, 4 April 2014

What is the Law in your Life?

5 things you need to know about rent payable under a lease:

1.   The rent payable must not be illusory.

2.   Rent will normally be paid quarterly, most likely on the Scottish Quarter Days. These may be the 28th of February, May, August and November if the "new" quarter days and the 2nd, 15th, 1st and 11th days of these months if the "old". Interest at a specified rate will be payable in the event of a late or non payment of rent.

3.   VAT may be chargeable on rent payments if the landlord has elected to opt to tax.

4.   The tenant may negotiate a rent free period prior to entry if market conditions so dictate or if works are required to the leased subjects.

5.   The annual rental may be subject to rent review at an agreed frequency during the period of the lease.

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