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The third and final instalment of my recent blogs on pop up shops is concerned with the potential pitfalls that are experienced with short term lets over commercial properties.

In my previous blog on this subject we discussed the different types of agreements for short term occupation of premises.

SDLT (StampDutyLand Tax)

Tenancies at Will and Licences are exempt from SDLT unless they form part of an agreement for lease and then this may trigger a charge as the contract has been substantially performed.

Security of Tenure

Generally, short term leases are not subject to any protection by statute and therefore the tenant cannot ‘force’ the landlord to extend the term of the lease. This is a general rule and the landlord can find that by granting consecutive leases for more than 12 months or where there is provision to extend the lease passed 12 months the tenant is able to get some protection.

The statutory protection does not apply to licences and tenancies as they are not construed as business tenancies for the purposes of the relevant legislation, in this case the Landlord and Tenant Act 1954.

From a tenants point of view this does not offer them much protection which could either be a bad or a good thing depending on your view point. The argument is that the whole concept of pop up shops is that it gives the tenant greater flexibility.

If you need further information on this subject please contact me at wjames@fidler.co.uk or contact me on 0162345111. Alternatively you can visit our  for more information on what we do.

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I published a blog last week regarding the influx of pop up shops on the high street at the moment. Economically, this makes a lot of sense and is good for the high street generally but how does a tenant occupy the premises if they do not enter into a full commercial lease of the property?

Generally a landlord will ask you to enter into either a licence for occupation, tenancy at will or a periodic tenancy.

A licence for occupation is for a short period of time and does not give the tenant an interest in the property with the knock on effect that the Landlord can enter the premises at any time.  They can also be drafted so as to allow the landlord a right to share occupation with the tenant.

A tenancy at will is a more formal agreement for occupation which in theory is for an indefinite period of time but generally can be terminate on notice being given by either party. This type of agreement can be modified to suit either the landlord to the tenant to their individual requirements. Quite often they arise at the end of a pervious lease whereby the exiting tenant finds that they revert of this type of agreement. They are not as secure for the tenant as a full commercial lease for a defined period of time.

A periodic tenancy is a tenancy agreement for fixed intervals or periods of time that run concurrently to each other. Typically the term or period will be how often the rent is paid which quite often is either weekly or monthly. They tend to be more applicable for residential property rather than commercial.

All of the above carry with them their own benefits and pitfalls. Please keep an eye out for my further blog for more details on this or alternatively, if you want to discuss this in more detail contact me at wjames@fidler.co.uk or on 0162345111. You can also visit our website http://www.fidler.co.uk/comm_conveyancing/index.cfm

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Anyone walking down a High Street in the UK at the moment cannot fail to notice the amount of disused shops and retail units. Of the available units many are either disused and empty or being occupied by pound or charity shops. This environment has resulted in a new phenomena emerging, that of the pop up shop.

A pop up shop or temporary shop has been called an “innovative way in which businesses are adapting to changing trading conditions” by the British Retail Consortium but are they actually a good use of the empty properties and from a legal point of view what is the implications of this type of occupation.   

The concept has been around for quite a few years but it is only recently that businesses have adopted them. Essentially it can be a less risky strategy for both Tenant and Landlord in these uncertain economic times.

The Government has also mooted the relation of  planning permission to allow the change of use of the property to be easier and thereby make it more attractive for both Landlords and Tenants to use the premises for purposes not previously envisaged as the cost from a change of use perspective did not make it attractive enough.

Please read my later blogs on the considerations that both Landlord and Tenant should look into before embarking on this type of occupation. Alternatively, give me call or drop me an email in the Commercial Department at wjames@fidler.co.uk or on 01623 45111.

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