Grow Well (Horticulture Systems) Ltdwould like six weeks to fit out the premises before the lease commences and would like a three-year lease with two rights of renewal. The landlord is happy to give them the rights of renewal but is unsure of the increase in ground rent that will take place when the ground lease is renewed on 6 April 2026, and so is unsure of the rise in operating expenses that will follow. Grow Well (Horticulture Systems) Ltd would also like a further six carpark spaces. Assuming the landlord agrees, this will increase the rent by $12,000 per annum.

Grow Well (Horticulture Systems) Ltd would like to be sure that the new operating expenses will be affordable, so would like four months' notice of the proposed increase so that they can secure alternative premises if necessary. If four months' notice is not possible, the tenant would like the right to stay in the property, with no increases in outgoings, for a maximum of four months after they receive notice of the increase.

Grow Well's planned use for the premises is as office space, and consultation rooms for their clients.

Assume Commencement date is 2020 ( not current year)

Agreement to Lease

Premises: Suite B, 179 Barton Parade, Penderville

Car Parks: 12

Term: 3 years

Commencement Date: 6 April 2020

Rights of Renewal: 2 further terms of 3 years( 3+3+3) is this what should be showing?

Renewal dates: 6 April 2023, 6 April 2025

Final Expiry Date: 6 April 2028 9 years would be 6 April 2029

Annual Rent: Premises including 12 carpark spaces: $50,000 + $12,000 for additional car parks

Deposit: $2,500

Rent Review Dates: 6 April 2023, 6 April 2025(2026)

Default Interest Rate: 14%

Business Use: Offices and consultation rooms

Landlord's insurance:

(a) Full replacement

(b) N/A

No Access Period:

(1) 9 months (default)

(2) N/A

Proportion of Outgoings:

% 100

$ 2,000

Limited Liability Trustee: N/A

Outgoings: All boxes have been ticked

Agreement schedules

In the Third Schedule, Further Terms (if any), Heather has inserted:

9.0 The landlord will grant access to the tenant from February 22, 2020 for the purposes of fitting out the premises.( I assume more details required in this clause?)

10.0 The tenant would like to know the new operating expenses four months before the end of the lease and the landlord will advise the tenant accordingly. (This does not cover the Ground Rent increase issue)

Heather has given you the completed agreement to leaseform for your approval of quality and compliance as branch manager before she obtains the signatures of the landlord and tenant.

b) Double check the agreement schedules to confirm they have been completed correctly, and if you find errors in any of the agreement schedules explain and correct the errors

Answer rating: 100% (QA)

Here are the detailed solutions and adjustments for the Agreement to Lease and Agreement Schedules based on the information provided 1 Premises Suite ... View the full answer