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Commercial Leases - The Differences Between England And Scotland

By Richard Godden

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Published: 25Feb2012
Word count: 440
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Commercial leasing law in Scotland is completely different to the system in England. So if your business is (or was) based in England but you are considering leasing a premises across the border, you need to ensure you are fully aware of the disparity between the two legal systems.

The Main Points to Consider.

In Scotland, the legislation regarding commercial leases is distinctly separate from England. There are many differences and variations, many of which are complex and intricate. However, to help you understand the basis of commercial leases in Scotland, we have put together a list of points for you to consider:-

* Landlord and Tenant Act - The Landlord and Tenant Act does not apply in Scotland, nor is there an equivalent. Rights and obligations are instead determined by the terms of the lease;

* Lease terms - The terms of the lease are of the utmost importance in Scotland. Care must be taken when negotiating the terms, as this will be the main point of reference with regard to rights, obligations and disputes. There is little legislation that can override the terms of the lease;

* Protection of tenant's occupation - Due to the focus upon the terms of the lease and the absence of legal regulations, a tenant is given little protection by the law. Therefore they rarely enjoy any right to statutory protection of occupation;

* Ending the lease - The lease will expire on a specified date in Scotland, but it is usually necessary for written notice to be given 40 days prior to this date, either by landlord or tenant. Otherwise it is possible for the lease to be automatically renewed.

* Improvements and alterations - A tenant is not entitled to financial compensation for any improvements or alternations carried out, unless the lease states differently;

* Duration - Scottish commercial leases cannot be granted for more than 175 years. There is no restriction in England;

* Acting 'reasonably' - In England, if a tenant makes a request, the landlord's consent must not be "unreasonably withheld or delayed". In Scotland there is no such implication: a landlord is not required to act reasonably in matters of consent unless it has been specified in the lease.

Speak to a Solicitor in Edinburgh.

These are just a few of the main points of consideration. In reality the difference between Scottish and English commercial leases are far more wide-stretching. That is why if you are going to enter into a commercial lease in Scotland, you need expert legal help from local solicitors.

Need specialist Edinburgh Property Solicitors? McKay Norwell are Edinburgh Solicitors serving individual and business clients across Scotland

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