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The lease will normally also contain provisionsregulating the purposes for which the propertymay be used and the manner in which thetenant may dispose of its lease.An outright sale of part of the leased propertyis generally prohibited but a transfer of thewhole (commonly called an assignment) ispermitted subject to obtaining the landlord’sprior consent which (generally) may not beunreasonably withheld. The liability of theoriginal tenant of a building following anassignment is dependent upon the date thatthe lease was granted. If the lease (or theagreement leading thereto) pre-dates 1January 1996, then, as a rule, the originaltenant (and, in all probability, its successors intitle) will each remain liable for its obligationsunder the lease throughout the term of thelease even after a further transfer. In practice,post 1995 leases generally limit tenants’liability to the period of their own ownershipand that of their immediate successor.Modern commercial leases generally allow thetenant to sub-let all or part of the property,subject to the prior approval of the landlord,but the precise nature and extent of the rightswill be the subject of negotiation in each caseat the time the lease is drawn up.Leases will almost certainly require thelandlord’s consent to the carrying out of anyalterations to the property (particularly wherethose alterations affect the structure). Theextent to which a landlord must be reasonablein giving consent is a matter of negotiation atthe time the lease is drawn up. In most cases,the tenant will not be entitled to any paymenteven if these alterations improve the property.Finally, it should be noted that businesstenants enjoy a measure of statutory protectionin that, unless certain circumstancesprescribed by statute apply (eg persistentdefault by the tenant, redevelopment or arequirement by the landlord to occupy theproperty itself), a commercial tenant will beentitled to renew its lease on market terms.This valuable right can, however, be excludedby the landlord giving a prescribed form of“warning notice” followed by a tenant’sdeclaration that it agrees to the exclusion of itsrights.3. Tax considerationsAnother section of this guide has commentedon capital allowances. In addition to this aspectit should be noted that occupiers (as opposedto owners) of commercial property are liablefor business rates (ie a local property tax)usually based on the size of the premiseswhich is being used. Additionally, VAT may bepayable on any capital payment made toacquire a property interest, upon rentalpayments under a lease or on developmentcosts. SDLT is payable currently on all capitalpayments at the rates set out on page 13.2. Town & country planningA system of town and country planning controloperates in the UK. Planning powers reside,principally, in local authorities (eg districtcouncils, London boroughs). Subject to certainlimited exceptions (such as below), newbuildings may not be erected, existingbuildings may not be altered, nor the use ofland or existing buildings changed, without firstobtaining the requisite planning consent.There is a limited ability to change use withinthe same use class without the need forconsent, such as changing from one lightindustrial use to another light industrial use,and to change the use between differentclasses in particular cases, where the new useis generally seen as less onerous than the old.Applications are made to the relevant planningauthority and will be determined in accordancewith the current development plan for the area.There is normally no right of compensation ifplanning permission is refused, although thereis a right of appeal.Additional controls apply to the proposeddevelopment of a building which is listed asbeing of particular architectural or historicinterest or is in a conservation area. The list ismaintained by English Heritage whilst localauthorities determine their own conservationareas and set up appropriate policies for them.Enterprise Zones and Simplified PlanningZones have been set up by the Government incertain parts of the country in order tostimulate industrial and commercial activity bythe removal of certain tax burdens and byrelaxing or speeding up the application ofplanning control.The planning system in England and Wales isundergoing much reform at almost all levels atthe moment. A new (lowest) tier of planninghas been introduced at the neighbourhoodlevel. Parish Councils or other groups formedfor the purpose are now drawing upneighbourhood plans relating to developmentin their areas. At the local level, Local Plansare being replaced by Local DevelopmentFrameworks, which govern developmentthroughout the local authority. In March thePAGE 24