Tag Archives: commercial property

Long Leases (Scotland) Act 2012

The Long Leases (Scotland) Act 2012 will convert ultra-long leases will into ownership on the appointed day. This follows the principal applied to feus by the Abolition of Feudal Tenure etc (Scotland) Act 2000 which converted the right of the feuar into real ownership. The SLC argued in their Report on the Conversion of Long Leases that as ultra-long leases are essentially “pseudo-feus” it seems obvious to apply the principles of the 2000 Act to long leases. This means that if you are a tenant with an ultra-long lease, then as of the appointed day you will become the owner of the property.

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With-holding of landlord’s consent in practice

As a follow up to the previous blog which discussed the principle of withholding landlord’s consent in theory, this blog article will look at it in practice, and will focus on the recent Outer Court case; Homebase Limited v Grantchester Developments (Falkirk) Limited [2015] CSOH 49. This case relates to a lease of retail premises in Falkirk, where the Landlord was Grantchester, and the Tenant was Homebase.

Background

The Tenant wanted to assign their interest in the Lease to another company called CDS (Superstores International) Limited (“CDS”). Under the Lease, the Tenant was not permitted to assign their interest, without first obtaining the prior written consent of the Landlord. The consent was not to be unreasonably withheld or delayed, in terms of an assignee “of sound financial standing demonstrably capable of fulfilling the Tenant’s obligations” under the Lease.

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Land and Building Transaction Tax – Commercial focus in Scotland

From 1st April 2015 there will be a new tax system in place applicable to all land and property transactions in Scotland, known as the land and building transaction tax (“LBTT”). This will replace the current system in Scotland, Stamp duty land tax (“SDLT”). This article will focus on the aims of the new tax system and how the LBTT regime will work, with a particular focus on the potential implications from a commercial property standpoint, both in relation to commercial purchases and commercial leases.

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