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Hall Reynolds welcomes first Solicitors Apprentice

Molly joined Hall Reynolds on 4th September as a Solicitors Apprentice and will be studying at BPP University Law School.  

  Our apprentice, Molly who is currently 19, has undertaken work experience with us previously and her intention was to study criminology at university and then undertake the solicitor’s conversion course and qualify as a solicitor.  Molly attended Kenilworth Sixth Form and took up a place at Durham University, but due to severe illness in her first term she decided to take a broader look at her options. 

“After falling ill at university, I was no longer able to attend which led me to look at other options for my future. After looking into Law in more depth and seeing the changes made to the route for qualifying as a solicitor, I found that a degree apprenticeship in law was the best option for me because I will still obtain a degree and will also gain 6 years’ experience which will enable me to put my learning into real life training. I felt that this would be more beneficial to my learning and my future as it provides you with everything you need to excel and become a qualified solicitor.”

 

  The entry route to qualify as a solicitor was changed by the SRA in 2021 and a conversion course is no longer the only route to qualification.  A degree and sitting the SQE examinations, along with 2 years qualifying work experience is now the requirement.  After further research, Molly decided that the Solicitors Apprentice route would be preferable and would mean that she could gain her degree,  SQE and gain valuable workplace experience and all without the expense of university fees and then taking professional qualifications.   

  Molly will work four days a week and will have a scheduled day away from the office to study and complete coursework.  The scheme will ensure that at the end of the 6 years she will be a qualified solicitor and will already have 6 years industry experience.  

“The whole Hall Reynolds team is excited about Molly coming on board.  The decision to take on an apprentice was helped by the guidance and advice of BPP and the fact that we can essentially grow and develop our own talent whilst assisting someone achieve their dreams.” Katy Taylor, Partner.

“The whole Hall Reynolds team is excited about Molly coming onboard. The decision to take on an apprentice was helped by the guidance and advice of BPP and the fact that we can essentially grow and develop our own talent whilst assisting someone achieve their dreams.” Katy Taylor, Partner.

BPP University Law School has delivered market-leading paralegal and solicitor apprenticeships since 2016, when the new Trailblazer Legal Apprenticeship Standards first became available. The growth of apprenticeships and the introduction of the Solicitors Qualification Examination (SQE) in 2021 has created opportunities for law firms to shape the future education and training of their early talent, introduce new career pathways and diversify their talent pools. It has also created opportunities for us to develop programmes for apprentices and graduates that will meet the rigours of the proposed new assessments and meet the demands of law firms for their future lawyers to be even better prepared for practice. We are able to offer apprenticeship models for both post A-Level and graduate entry, alongside non-apprenticeship graduate pathways, all of which enable employers to utilise the apprenticeship levy. 

If you’d like to find out more about how you could be the next Hall Reynolds Apprentice (not the TV programme!) contact us on 01789 772955 or email@hallreynolds.co.uk. 

August Bank Holiday

The office is closed from 4.45pm Friday 25th August 2023

and

will reopen 8.30am Wednesday 30th August 2023.

The importance of understanding the contents of your Will

The importance of understanding the contents of your Will has recently been highlighted by a case involving an illiterate property tycoon whose estate was worth £100 million.

We take a look at what happened after a surprise Will left the bulk of his estate to his ‘manipulative’ daughter, cutting out his son and the son’s two nephews….

Read more: The importance of understanding the contents of your Will
legal-update-WillsDownload

Have you registered your Will?

As a member of The National Will Register we can now register your Will for you.

Why should I register my Will?

In a survey commissioned by The National Will Register, two thirds of children would not know where to locate their parents’ Wills. The passage of time, house moves, and new relationships are all contributing factors to this statistic.

Writing a Will and regularly reviewing it is one of the most important things you can do for your loved ones. Ensuring that your family can therefore find it when you have passed on is essential. If a Will cannot be found after your death then your assets will be distributed in accordance with the intestacy rules, not necessarily in the way you would have wished.

We hold your Will safely, but we record its location with The National Will Register so that beneficiaries can always locate it when the time comes.

Contact us to Register your Will with The National Will Register.

https://www.nationalwillregister.co.uk/

Easter Holidays

The office will be closed for Easter from

5pm Thursday 6th April and will reopen

9am Wednesday 12th April 2023.

Mothers Day 2023

For all the mothers out there…..

Monday 19th September 2022

Please note that as a mark of respect to Her late Majesty Queen Elizabeth II this office will be closed on Monday 19th September 2022 and will re-open on Tuesday20th September 2022 at 8.30 am

Commercial Property Sales – Enquiries

If you are selling a commercial property, it’s important that you reply accurately and truthfully to enquiries made by the buyer’s solicitor.

In the course of a commercial property sale, the purchaser’s solicitor will pose a range of Commercial Property Enquiries (CPSEs). As a vendor, it’s vital that you supply the answers to the enquiries honestly and provide as much information as possible to the buyer via their solicitor. If circumstances change or arise during the transaction, the onus is on the seller to update the replies.

Sellers must remember that the duty to tell the buyer about disputes, notices etc continues after exchange and up to the point that the transaction completes.

The implications of failing to answer these enquiries honestly and fully are serious. In the case of Greenridge Luton One Limited v Kempton Investments Limited [2016] EWHC 91 (Ch)  that involved the sale of a commercial building, the seller was found to have fraudulently misrepresented the situation as a result of failing to honestly answer a query relating to service charge arrears at any let unit.

A key tenant of the building had started to complain about the level of service charges and was withholding payments. The result of this was that significant service charge arrears has built up. The seller did not disclose this information to the buyer of the property, answering ‘none’ or ‘none so far as the seller is aware’ to a number of relevant queries.

By the time exchange of contracts came, the tenant had written to the seller to state that they considered that a dispute had arisen. The seller did not reveal this to the buyer.

The service charge dispute came to the attention of the buyer and the buyer’s solicitor between exchange and completion and the buyer sought to withdraw from the contract on the basis that the property was worth less as a result of the dispute.

The Court found that the seller had fraudulently misrepresented the situation to the buyer and awarded the buyer the return of the £812,500 deposit paid on exchange, and costs and damages of almost £400,000. The seller was found to have deliberately misled the buyer, as opposed to making an innocent misrepresentation.

The seller is not required to volunteer information if no enquiries are raised. The buyer will have no recourse as, in the absence of relevant enquires, the principle of ‘buyer beware’ (caveat emptor) applies.

Advice for buyers:

Make sure your solicitor carries out a comprehensive range of searches and enquiries when buying a commercial property – which is where our invaluable guidance comes in to safeguard your interests.

We have many years of detailed experience in negotiating commercial leases, so do please contact us if you are considering taking on a new tenant. We can help you minimise the risks.

If you have any questions or require further advice, please contact:

David Hall, 01789 772955 / email@hallreynolds.co.uk

The information, materials and opinions contained on this website are for general information purposes only, are not intended to constitute specific legal or other professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. Hall Reynolds LLP does not accept any responsibility for any loss which may arise from reliance on information or materials published on this website

Commercial landlords – essential information

RENT ARREARS
Not good news — These days £5,000 is the minimum figure for serving a statutory demand and for bankruptcy proceedings against an individual.

The previous figure was a much more reasonable £750 (which remains the minimum for service of such documents where the debtor is a company).

Effectively therefore most landlords will have to pursue in the County Court where the tenant is an individual and the debt is under £5,000. Time consuming, inconvenient and expensive.
N.B. Commercial Rent Arrears Recovery system is only available for recovery of rent, VAT and interest. It doesn’t cover service charges or any other items reserved by a lease and applies only to purely commercial lettings.

IS THE ANSWER RENT DEPOSITS?
A possible option for the landlord could be to insist on a rent deposit of at least £5,000 when dealing with a tenant who is an individual — but is that realistic in the case of a small letting?

When there is a request for consent to assign to an individual, is the answer to insist on a rent deposit of this size in return for consent being given?

The danger is that if no rent deposit is taken individual tenants may simply walk away from outstanding rent liabilities because the landlord does not want the expense and inconvenience of chasing in the County Courts for a small claim.

FORFEITURE OF A LEASE
A cautionary note
A landlord may well have the right to forfeit if a tenant is in breach of covenant.
If the landlord inadvertently commits an act which recognises the continued existence of the lease then he loses his right to forfeit.

An objective test applies, e.g.:

• Issuing and accepting rent for rent due in advance will be a waiver even if it’s done on a “without prejudice” basis.
• Unwittingly confirming the ongoing landlord and tenant relationship, e.g. by merely inspecting the premises or entering into discussions about the surrender of the lease or a possible consent to assign.

In the current market forfeiture is not a frequent occurrence but, in the case of a bad tenant where forfeiture might be required, or if the market picks up again, the above points should be borne in mind.

SCHEDULE OF CONDITION/REPAIR
You will be aware that it’s becoming more common in many commercial leases to see a provision such that “the tenant is not required to put the premises in any better state of repair or condition than they were at the start of the lease as evidenced by a schedule of condition annexed to the lease”.

Great for the tenant but not for the landlord. “No better” means no protection at all for the landlord.

The tenant can wreck the premises and they will be in “no better” condition. This clever wording is to be avoided.
If this clause must be included then you should make sure that the provision is to ensure that the premises are maintained in “no worse” condition than they were at the start of the lease.
Better still, more and more landlords are being advised to resist this and to require that if there is a specific defect then that should be identified and liability for that defect specifically excluded.
So if you are a landlord then the advice is to resist the more general clause if at all possible.

FORFEITURE – TENANT INSOLVENCY
All too frequent an occurrence these days.
Remember that the Insolvency Act 1986 provides that no legal process can be started without the Court’s permission if a tenant is in administration—more cost for the landlord.
Happily, recent decisions have made life easier. If forfeiture doesn’t impede the purpose of the administration then the landlord may well succeed in recovering the premises.

BUSINESS TENANCY OF FORMER AGRICULTURAL BUILDING
A letting for non-agricultural purposes of a building which was an agricultural building will not be a farm business tenancy but a conventional business tenancy under the Landlord and Tenant Act 1954—a much more acceptable situation for the landlord.

IMPORTANT

SCHEDULE OF IMPLEMENTATION OF ENERGY EFFICIENCY STANDARD
More potential expenditure for landlords, but don’t ignore it. Please read on.

As you will know, minimum energy efficiency standards have been introduced not only into the residential property sector but also into the commercial private property sector as well.
The key dates are as follows:

• April 2016 – from that date residential tenants are able to carry out prescribed energy efficiency improvements with the landlord’s consent, which must not be unreasonably withheld.
• April 2018 – from that date the regulations made it unlawful to grant new leases of residential or commercial property with an EPC (Energy Performance Certificate) rating of less than ‘E’.
• April 2020 –from this date this will extend to all residential leases; and
• April 2023 – the provisions will be extended to all commercial leases. This provision could cost the property sector a lot of money.

The number of properties which have an EPC rating of F or G in England and Wales is estimated at
2-300,000!

The advice is therefore to implement a programme of upgrades now, spread the cost possibly by service charges and not leave it all to the last minute.

We have many years of detailed experience in negotiating commercial leases, so do please contact us if you are considering taking on a new tenant. We can help you minimise the risks.

If you have any questions or require further advice, please contact:

David Hall, 01789 772955 / email@hallreynolds.co.uk

The information, materials and opinions contained on this website are for general information purposes only, are not intended to constitute specific legal or other professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. Hall Reynolds LLP does not accept any responsibility for any loss which may arise from reliance on information or materials published on this website

 

Commercial tenants – essential information

Your premises are or may become a key part of your business. As your business expands and takes on a new venture these are some of the key areas on which you should take legal advice before you commit yourself.

Heads of terms

It’s important to clarify and agree the main terms of the lease with the landlord before you are given a draft lease. Try to formulate a ‘Heads of Terms Agreement’. Although generally not legally binding, if carefully prepared, this will save time when negotiating the lease document.

The length of the lease and early termination

You should seek to ensure that the lease gives you some flexibility if you outgrow the premises or if you need to end the lease early. You could do this by:

– agreeing a shorter term

– negotiating a longer term with a break clause enabling you to end the lease part way through the term.

Transfer of the lease

You should have the right to transfer the lease to another tenant. Most landlords will require you to guarantee the new tenant’s obligation to pay the rent under the lease. If the new tenant defaults, the landlord could require you to:

– pay rent and other expenditure for the remainder of the lease.

– If the tenant is declared bankrupt or is wound up, take the lease back for the remainder of the term.

Similarly, you might seek to ensure that you can sublet the whole or part of the premises to give you more flexibility.

Rent

Try to agree an initial rent free period. This could be helpful if you are just starting out in business or need some time to fit-out the premises.

Rent is usually paid quarterly in advance, but this can sometimes cause cash flow difficulties. If so, ask if rent can be paid monthly in advance.

VAT

Many rents under commercial leases attract VAT. This may be a problem if you are not VAT registered and you cannot claim the VAT back.

Rent Reviews

In a longer lease of 3 to 5 years or more, the lease may allow the landlord to put the rent up part way through the term.

Reviews are usually “upwards only” but on rare occasion it is possible to negotiate a review in line with the market rental of comparable local premises which could result in a rent reduction.

Personal Guarantees and Rent Deposits

Some landlords seek personal guarantees from directors of tenant limited companies. This defeats the object of limited liability so avoid them unless you have no other option.

You could offer a rent deposit instead. These are often at least one quarter’s rent. The rent deposit should be held in a separate rent deposit account to protect the money in case the landlord goes bust!

Repair

This is very important provision. Almost all leases require the tenant to keep the rented property in good or even better repair. This can also have the effect of requiring you to put the property into repair. If the property is old and in a poor state of repair you could face a big repair bill because the lease will require you to hand back the property in accordance with its terms. Even new or recently refurbished properties can cause problems as they may come with “inherent defects” resulting from poor design or construction methods which may require repairs in the future.

A “photographic schedule” attached to the lease noting the state of repair of the property at the beginning of the lease will help to protect you. Dilapidations clauses for repairs at the end of the lease can be very expensive, and agreeing that you will not be required to put the property into any better state of repair than at the start of the lease as evidenced by the schedule will reduce that liability.

If you are leasing part of a building and are only responsible for part of the repairs, make sure that the landlord is required to repair parts of the building not covered under yours or any other lease. For example, you may not be required to repair the roof but you still need to be able to insist upon the landlord doing so.

Service Charge

A lease of part of a building or a of unit on an estate will often include a service charge to cover the landlords costs incurred in maintenance and repairs to the rest of the building, roads, common areas, cleaning, security and so on.

Check what proportion of the entire service charge will apply to the property you are leasing and how this is calculated to ensure it is fair. Try to negotiate a “cap” to the service charge so you are not faced with a large bill if the landlord needs to undertake substantial repairs to the building during your lease.

Security of Tenure

All commercial leases over 6 months in length are normally protected under the provisions of the Landlord and Tenant Act 1954 which provides that you will not automatically have to leave at the end of the lease unless the landlord serves a notice establishing one of a number of grounds.

The Act also allows you to ask the court to decide the rent under a new lease the landlord offers you if you cannot agree the same. The landlord can seek to exclude that protection but if the location of the premises or continuity of occupation is key to your business, it could be very important to have it in place.

Stamp Duty Land Tax

The longer the term of the lease and the higher the rent, the more likely you are to have to pay Stamp Duty Land Tax on the lease. It is worked out on the total rent paid during the term (plus any VAT)

Any amount over £150,000 (subject to a calculation to arrive at what is called a Net Present Value) will attract Stamp Duty at 1%.

Negotiate the most efficient length of term to avoid paying SDLT or seek to reduce the rent slightly if you are just over the threshold.

Registration of the lease at the Land Registry

If the term of the lease is over 7 years, it will have to be registered at the Land Registry with a properly prepared scale plan.

We have many years of detailed experience in negotiating commercial leases, so do please contact us if you are considering taking on a new lease or sublease, assigning an existing lease or taking on an assignment of an existing lease. We can help you minimise the risks.

If you have any questions or require further advice, please contact:

David Hall, 01789 772955 / email@hallreynolds.co.uk

 

The information, materials and opinions contained on this website are for general information purposes only, are not intended to constitute specific legal or other professional advice, and should not be relied on or treated as a substitute for specific advice relevant to particular circumstances. Hall Reynolds LLP does not accept any responsibility for any loss which may arise from reliance on information or materials published on this website