Rewriting the book on leases: The process of negotiation from scratch is reduced to a debate over details
Sunday 01 August 1993
It underlines the point he is trying to make to the legal profession and commercial property world - there is a huge volume of paper and work that may not be really necessary.
Boots Properties, part of the high-street chemist group, was examining the same problem two years ago. It approached D J Freeman to devise a way to save the time and money involved in having to negotiate a separate lease agreement with every tenant in multi-let developments.
Mr Clark's solution is the Leasebook. He believes it could mark a new era in lease negotiation. Boots is planning to use it in all future developments.
The Leasebook is simple and unoriginal, inspired by the agreements used in home insurance and car leasing. The idea is to extract the standard provisions, which represent the bulk of a lease, and deliver them in book form as a fait accompli to all prospective tenants. Particular provisions are catered for in a separate lease deed, specific to each tenant. The process of negotiation from scratch is reduced to a debate over details.
The benefit for the landlord is clear - the bulk of the legal cost occurs only once. Mr Clark proposes a separate Leasebook for each development, drawn up in advance and preferably in negotiation with key tenants.
The benefit for the tenant comes through the landlord's willingness to take a reasonable position from the outset and abandon the procedure of starting with the aim of haggling, thus saving legal fees.
However, there could be problems between the negotiators. What if the legal advice to the tenant is to refuse the Leasebook's terms outright, as one property lawyer insists would invariably be the case? What if the landlord's idea of reasonable terms does not correspond with every tenant's?
Mr Clark believes the cost incentive will persuade landlords to be realistic in the terms of the Leasebook and that tenants will respond to this. After all, he argues, any company buying an existing lease would face the same inflexibility.
He also believes the legal profession will see the wisdom of his system. 'There are going to be some lawyers who hate it,' he admitted. 'But less fees should translate to more profitable business if long negotiations are cut out.'
- 1 'Not suppost to cry': 9-year-old lists the worst things about being a boy
- 2 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Ryan Gosling granted temporary restraining order against a woman 'convinced she was his twin flame'
Jennifer Lawrence sings in new The Hunger Games: Mockingjay Pt 1 clip on YouTube
Mike Nichols dead: The Graduate director dies suddenly following cardiac arrest
Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
Woman opens professional cuddling shop – gets 10,000 customers in first week
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Revealed: How the world gets rich – from privatising British public services
Myleene Klass: Ed Miliband 'strikes back' by comparing UK's need for Labour's mansion tax to Hear'Say track
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...