Four-month review of the MCL documents

Peter WilliamsMCL News

The MCL documents were released on 10 July, and have therefore been available for use for almost four months.

The MCL working party is planning to review all the comments that have been received from users at its next meeting in the middle of November.

It would therefore be very helpful if users could let us have any comments for this purpose by Monday 10 November.

The working party would also be very interested in hearing about:

(a)  any transactions in which the MCL documents have been used, and how negotiations proceeded; and

(b)  whether firms are adopting the MCL suite of documents as their standard templates and, if so, whether they are making any changes to the published versions of the documents.

Please use the feedback/contact form for all communications.

Index linked rent review clause

Michael CallaghanUpdated documents

MCL-LEASECLAUSE-03

We have made a small change to the index linked rent review clauses.  In Part 3, the definition of “Current Rent” has been amended to refer to the “Notional Rent Review Date” in place of the “Rent Review Date.

Update on updating the MCL documents and new RSS feed

Peter WilliamsMCL News

Three changes have been made today to the MCL website.

Keeping the MCL documents updated

Potential users of the MCL documents were expressing concern that they might not be kept up to date.  The working group that produced the MCL documents are happy to clarify that they will keep the MCL documents under review in the light of feedback from users, new law, court decisions and developments in market practice, and update them when appropriate.

The wording of the relevant FAQ has been updated accordingly.

RSS Feed

An RSS Feed has been added to the MCL website.  If you subscribe to the RSS Feed, you will be notified automatically when new items are added to the News page.  You will find the subscription button for the RSS Feed on the Home Page (look for the  rss-icon  icon).

If you are using Google Chrome as your web browser, you will need to download and install an RSS Reader extension for Chrome from the Google Chrome webstore in order to receive RSS feeds.

Link to Gateley’s blog article on the MCL

A link has been added from the Guidance page to Gateley’s recent blog article on the MCL.

 

 

Model Commercial Lease will speed up lease negotiations

Peter WilliamsMCL News

The launch of a new family of leases and related documents today heralds faster and cheaper negotiation of commercial leases, benefiting both landlords and tenants. The Model Commercial Lease (MCL) is written in modern language, comes in a number of versions to suit the premises being let and is available free to everyone. The hope is that before long the MCL will become a familiar starting point for the majority of commercial leasing transactions in England and Wales.

The MCL was produced by a working group of property lawyers and landlord representatives set up three years ago by the British Property Federation’s Commercial Committee to review the commercial leasing process. The group consulted informally with most of the major law firms, and consulted more formally with a number of BPF members.

Different versions of MCL leases are available to suit different types of commercial buildings, such as offices, shops, shopping centre units and industrial/logistics units. Other documents are also available, including a rent deposit deed and typical licences.

The MCL is intended to avoid much of the unnecessary negotiation on most routine letting transactions by representing a fair starting point for both parties, and in many cases a fair end point as well. The aim has been to remove the “ritual dance” at the start of a transaction, freeing up the parties to discuss the issues that are specific to their deal and those issues that actually matter to them.

Edward Benzecry, a partner at law firm CMS Cameron McKenna, who led the working group, said

“Virtually every law firm has its own form of lease. They all say much the same thing but using different words in a different order. It makes negotiation tedious, costly and time-consuming, with little practical benefit to either party. The MCL is designed to introduce at least a degree of standardisation. It has been achieved with banking and construction documents; surely we can do the same with leases as well.”

The Model Commercial Lease can be downloaded from www.modelcommerciallease.co.uk.