On the move: avoiding the legal pitfalls when moving your business
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1 On the move: avoiding the legal pitfalls when moving your business Beverley Vara Partner, Litigation Real Estate Richard White Group Property Director, New Look 10 May 2011
2 Season One 2011 Seminar Schedule Tuesday 10 May Wednesday 11 May Friday 13 May Wednesday 18 May On the move: avoiding the legal pitfalls when moving your business Beverley Vara Partner Richard White Group Property Director, New Look Project and Infrastructure Bonds Tim Conduit Partner Cathleen McLaughlin Partner Dorina Yessios Senior Counsel The Tangled Web of Trade and Financial Sanctions Peter Watson Partner Michelle de Kluyver Senior Associate Community Infrastructure Levy: the new tax on the development of land Sebastian Head Senior Associate Thursday 19 May Friday 20 May Monday 23 May Emerging Markets: what s the big deal? Lorraine Ball Partner Philip Bowden Partner Philip Smith Partner Philipp Wahl - Partner Cross-Border Pipelines in Europe Charles Lindsay Partner Can we share is it possible to have a single pan-european contract law? Joanna Page Partner Bénédicte Chesnelong Counsel Jason Rix Senior PSL Ulrike Stimmel PSL Allen & Overy LLP One Bishops Square, London E1 6AD, United Kingdom Tel +44 (0) Fax +44 (0) If you would like to attend one or more of our seminars, please visit where you can register. If you have any queries or require further information please [email protected]
3 On the move: avoiding the legal pitfalls when moving your business (12.30pm 1.30pm) Beverley Vara Richard White Summary This seminar looks at some of the issues to consider when moving commercial property including lease renewal rights, dilapidation liabilities, break clauses and alienation from both the lawyer's and client's perspective.
4 Speaker Biography Beverley is a partner in the Real Estate Dispute Resolution team. Her areas of expertise include landlord and tenant disputes, such as enforcement and interpretation of lease covenants, rent reviews and lease renewals, as well as sale and purchase disputes, development disputes, professional negligence actions and party wall and neighbour disputes. Beverley Vara Partner Litigation Real Estate Contact Tel +44 (0) [email protected] Richard White is Group Property Director for New Look. Formerly at Burger King and Thomas Cook, Richard has wide experience in all types of active property portfolio management both of large retail portfolios and office premises. Richard White Group Property Director New Look
5 On the Move: avoiding the legal pitfalls when moving your business Beverley Vara: Partner Allen & Overy Richard White: Group Property Director New Look Allen & Overy 2011
6 Richard White Group Property Director New Look Previous Office Move Projects Samsung Smith and Nephew Scottish Power Thomas Cook Burger King In Planning New Look
7 Why Move? Space requirements Location Cost Saving Tax Madness / Vanity
8 Considerations Location Costs Incentives Flexibility New Lease
9 Exiting the old site Break option, lease expiry or disposal Safety buffer IT Dilapidations
10 Moving Don t Do it yourself (unless you are very brave) Involve the team s Bite the bullet and go for it Avoid the last minute changes of direction
11 Topics Break Notices Notices under LTA 1954 Alienation Dilapidations Allen & Overy 2011
12 Break Notices Check the requirements notice repair payment Press landlord for receipt of notice Leave enough time Preserve evidence of compliance Case study: Prudential Assurance Company Ltd v (1) Exel UK Limited (2) Tibbett & Britten Consumer Group Ltd [2009] EWCH 1350 Allen & Overy 2011
13 Prudential Assurance v Exel & Anor Joint Tenants part of the same group All Group properties dealt with by central property function Break notice served in the name of one of the tenants only Solicitors for the landlord and tenant had been corresponding on a separate matter previously Was the notice valid? Allen & Overy 2011
14 The Landlord & Tenant Act 1954 S27 LTA 1954 In business occupation Allen & Overy 2011
15 Alienation S19 Landlord and Tenant Act 1927 S1 Landlord and Tenant Act 1988 S22 Landlord and Tenant (Covenants) Act 1995 Louisville principles Allen & Overy 2011
16 Does the Landlord consent? Landlord s response to applications to assign/sub-let Document assignment/sublease with any necessary licence Yes No No End Yes Did the landlord give written reasons for the refusal? Is the landlord s refusal reasonable? Start Tenant applies to landlord to assign/ sub-let Yes Is it an assignment? Transaction aborts No Landlord can be found to be unreasonable in the test he is applying No No End No Landlord falls foul of the Landlord and Tenant Act 1927 Yes Yes Yes Landlord and Tenant (Covenants) Act 1995 applies Allen & Overy 2011 Does the proposal fall within one of the categories anticipated by Section 22 Landlord can be found to be unreasonable in his application/ interpretation of the test Does the Landlord reply within a reasonable time? No Landlord falls foul of Landlord and Tenant Act 1988 Tenant can assign/sub-let anyway or seek a declaration from the Court End
17 Dilapidations Repair and yield up obligations Cost of repair building surveyor S18 LTA 1927 valuation surveyor Allen & Overy 2011
18 Questions? Beverley Vara Allen & Overy LLP One Bishops Square London E1 6AD Richard White New Look Mercery Road, Weymouth Dorset DT3 5HJ Tel: Tel: These are presentation slides only. The information within these slides does not constitute definitive advice and should not be used as the basis for giving definitive advice without checking the primary sources. Allen & Overy means Allen & Overy LLP and/or its affiliated undertakings. The term partner is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Allen & Overy LLP's affiliated undertakings. Allen & Overy 2011
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23 Season One 2011 Seminar Schedule Friday 27 May Tuesday 7 June Wednesday 8 June Thursday 9 June Monday 13 June Tuesday 14 June Wednesday 15 June Wednesday 15 June Wednesday 22 June Thursday 23 June Tuesday 28 June BASEL III: capital and liquidity reform Bob Penn Partner Irina Sinclair Senior Associate Plans for national infrastructure David Lee Partner Strictly Stress Karen Seward Partner David Cummings Senior Associate Guest speaker from Occupational Health Retail Structured Products the new world Etay Katz Partner Andrew Sulston Partner Nick Evans Associate Managing Antitrust Litigation Across Europe Jonathan Hitchin Partner Philip Mansfield Partner Rosemary Ioannou Associate Workplace Flexibility Mark Mansell Partner Emma Ife Senior Associate Current Trends in European Leveraged Finance Transactions Tim Polglase Partner Jonathan Brownson Partner George Link Partner Microfinance in the City Introduced by Greg Brown Partner Robert Annibale Global Director of Mircofinance, Citigroup David Hutchinson Chief Executive Officer, Social Finance Peter Ryan Founder and Chief Executive Officer, Mircolan Foundation An Update on the MiFID Review Damian Carolan Partner Kate Sampter Senior Associate Hot Topics in Restructuring Wendy Braithwaite Counsel Dylan Matthews Senior Associate Nick Harrod Senior PSL Patent Disputes and What Your Business Client Needs to Know: A Guide for In-House Counsel Huw Evans Partner Pam Taak Associate Thursday 30 June U.S. Tax Disclosure and Withholding after the HIRE Act: What lenders, underwriters, traders and investors need to know Stephen Fiamma Partner Allen & Overy LLP One Bishops Square, London E1 6AD, United Kingdom Tel +44 (0) Fax +44 (0) If you would like to attend one or more of our seminars, please visit where you can register. If you have any queries or require further information please [email protected]
24 One Bishops Square London E1 6AD United Kingdom Tel +44 (0) Fax +44 (0) These are seminar notes only. The information within this document does not constitute definitive advice and should not be used as the basis for giving definitive advice without checking the primary sources. In this document Allen & Overy means Allen & Overy and/or its affiliated undertakings. Any reference to a partner means a member, consultant or employee of Allen & Overy LLP. Allen & Overy LLP or an affiliated undertaking has an office in each of: Abu Dhabi, Amsterdam, Antwerp, Athens (representative office), Bangkok, Beijing, Bratislava, Brussels, Bucharest (associated office), Budapest, Doha, Dubai, Düsseldorf, Frankfurt, Hamburg, Hong Kong, Jakarta (associated office), London, Luxembourg, Madrid, Mannheim, Milan, Moscow, Munich, New York, Paris, Perth, Prague, Riyadh (associated office), Rome, São Paulo, Shanghai, Singapore, Sydney, Tokyo, Warsaw. MKT
Hot topics in insolvency and restructuring. Wendy Braithwaite, Counsel, Banking Restructuring. 13 March 2014
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