Commercial Lease Notice Of Default Template for England and Wales

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Key Requirements PROMPT example:

Commercial Lease Notice Of Default

I need to draft a Commercial Lease Notice of Default for our tenant Company XYZ Ltd who has failed to pay three months of rent totaling £75,000, with a requirement to remedy within 14 days before we initiate forfeiture proceedings.

Document background
The Commercial Lease Notice of Default is a critical document in commercial property management within England and Wales. It is typically issued when a tenant has failed to comply with lease obligations, such as non-payment of rent, breach of repair covenants, or unauthorized use of premises. The notice must comply with specific legal requirements and typically includes precise details of the breach, clear instructions for remedy, and specified timeframes for compliance. This document often serves as a prerequisite for further legal action and must be carefully drafted to ensure enforceability under English law.
Suggested Sections

1. Recipient Details: Full name, registered address and all known correspondence addresses of the tenant/defaulting party

2. Lease Reference: Details of the relevant lease including date of execution, parties, and full property description

3. Nature of Default: Specific details of the breach(es) including relevant lease clause references and dates of breach

4. Remedy Requirements: Clear statement of what actions are required to remedy the default

5. Remedy Period: Specific timeframe given to remedy the default, with clear deadline date

6. Legal Consequences: Statement of landlord's rights and intended actions if default is not remedied, including potential forfeiture

Optional Sections

1. Payment Instructions: Banking details and payment reference information when default relates to unpaid rent or other charges

2. Previous Correspondence: References to prior warnings, notices or relevant communications regarding the breach

3. Reservation of Rights: Statement reserving landlord's rights in respect of other or continuing breaches

Suggested Schedules

1. Schedule of Arrears: Detailed breakdown of outstanding amounts, due dates, and interest calculations if applicable

2. Schedule of Breaches: Detailed list of specific breaches with dates and supporting evidence

3. Supporting Documentation: Copies of relevant correspondence, photographs, or other evidence of breach

4. Lease Extract: Relevant excerpts from the lease showing breached provisions and landlord's remedies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Landlord and Tenant Act 1954: Primary legislation governing commercial tenancies in England and Wales, particularly important for security of tenure and termination provisions in commercial leases

Law of Property Act 1925: Fundamental property law statute that governs forfeiture and re-entry rights in commercial leases

Civil Procedure Rules 1998: Sets out the procedural requirements that must be followed if legal action is pursued following a default notice

Landlord and Tenant (Covenants) Act 1995: Governs the enforcement of lease covenants and the obligations of landlords and tenants in commercial leases

Commercial Rent (Coronavirus) Act 2022: Special provisions relating to rent arrears accumulated during the COVID-19 pandemic period

Business Tenancies Protection from Forfeiture Regulations: Regulations providing specific protections regarding forfeiture in business tenancies, including COVID-related provisions

Common Law Notice Requirements: Case law established principles regarding reasonable notice periods and requirements for clear communication in default notices

Pre-action Protocol for Business Debt Claims: Procedural guidelines that must be followed before commencing legal proceedings for business debts

Code of Practice for Commercial Property Relationships: Best practice guidelines governing the relationship between commercial landlords and tenants, including handling of defaults

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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