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.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.