Lease Terms Review 2017-10-13T19:49:00+00:00


The timescale in which one may consider the proposed MRO lese terms unfortunately is very narrow indeed, and has caught out many TPT’s.

Effectively the timescale is defined as being 14 days following the expiry of the “full response” period. In simpler terms, 42 days from the date of your MRO request. So if the POB responds on the last possible day, you would only have 14 days. Generally we find that POB’s tend to respond towards the very end of the response period – as they also only have 28 days in which to formulate their response.

Given that the typical TPT isn’t an expert in commercial lease law, even finding an suitably qualified solicitor able to analyse the lease within such a narrow window can be very difficult.

For the proposed MRO lease to be compliant, it must be for at least the same length of term as your existing agreement. If you are protected by the Landlord & Tenant Act then it must retain this protection. And lastly, it must not contain any provisions that are “uncommon” in a usual Free of Tie (FOT) agreement.

This last point is by far the most difficult to analyse. We have carefully considered the provisions of the proposed MRO leases from all the POB’s – each of which contain clauses we consider to be “uncommon”. However, naturally the POB’s solicitors will disagree with this stance – and to settle this argument the matter must be referred to the Pub’s Code Adjudicator (PCA) – which instigates a long and potentially complicated process of arbitration.

Therefore it’s important to seek some professional advice. We can provide our analysis of the proposed lease, and whether you decide to refer the terms must be considered on an individual basis – as it will be a case of weighing up the potential impact with process time and potential costs.