208-120 Agreement for lease and substantial performance
It is common for a formal lease to be preceded by an agreement, in which case the date of substantial performance is the effective date.
That is to say, where:
•there is an agreement (including missives not constituting a lease) under which a lease is to be executed and
•the agreement is substantially performed but the lease has not been executed,
the agreement for the lease is treated as if it were the grant of a lease, beginning with the date of substantial performance (Sch. 19, para. 25(1), (2)). The agreement is also referred to as the ‘notional lease’ in the legislation.
For the meaning of ‘substantial performance’, see ¶201-310.