The agreement may contain reservations to slightly extend the Longstop date, for example where an application for construction has been filed with the local authority and a decision has not yet been taken, but there should always be a final longstop date that can be terminated until that date if the condition is not met. In the absence of a long-term date, this could mean that both parties could be bound by a contract indefinitely. Article 5 applies to the exclusion of the guarantee of ownership. If the rental agreement is to be granted without a guarantee of ownership, the exclusion procedure must be completed before the conclusion of the rental agreement. For more information, see the Guidelines on The Exclusion of Security of Ownership and related forms. If a party needs to take action (for example.B. the execution of work or the filing of a construction application), it is more convenient to do so when it knows that it has the advantage of a contract that obliges the other party to enter into the lease. Also from a practical point of view, if a rental agreement is to be concluded on a given date in the future, the parties have time to prepare for the move (for example, the tenant can arrange moving cars and utilities and, if necessary, organize advertisements). A lease is simply a contract between two parties to enter into a lease at some point in the future.
It may grant the tenant a license to enter the premises to carry out work, but it is not a rental agreement (i.e. a lease) per se and does not grant much rights to the tenant of the property. The tenant should also ensure that there is an «expiry date» in the tenancy agreement if the work done by the lessor is not completed in a timely manner or if the necessary authorization has not been given. The tenant may then be able to terminate the contract and find alternative premises rather than delay further. If a lease is granted for a sufficient period of time with a sufficiently high rent (or a premium paid at the time of conclusion of the lease), SDLT may be payable. But what is the situation of the SDLT when a lease is concluded later with the conclusion of the lease? Well, SDLT is only due when the lease is entered into, unless the lease is «substantially completed» before that date. A lease is «substantially fulfilled» if: The main benefit of a lease is to provide the parties with the comfort, that the other party will actually enter into the lease on the date (or date provided for in the agreement). . . .