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Development Lease Agreement Template for England and Wales

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Key Requirements PROMPT example:

Development Lease Agreement

"I need a Development Lease Agreement for a mixed-use retail and residential project in Manchester, where my company will be developing a 2-acre site owned by a local authority, with construction planned to commence in March 2025 and specific sustainability requirements to be included."

Document background
The Development Lease Agreement is a crucial instrument in property development projects across England and Wales, particularly where landowners wish to retain long-term ownership while enabling development of their property. This hybrid document combines elements of traditional leases with development obligations, making it particularly suitable for large-scale commercial or residential projects. The agreement typically includes comprehensive provisions covering planning permissions, construction specifications, completion timelines, and operational requirements. It's especially relevant when the property owner lacks development expertise or prefers to delegate development responsibilities while maintaining ultimate ownership of the asset.
Suggested Sections

1. Parties: Identification and details of the landlord and tenant

2. Background: Context of the development lease and property details

3. Definitions: Key terms used throughout the agreement

4. Demise: Grant of the lease and term details

5. Development Obligations: Tenant's obligations regarding the development works

6. Rent and Other Payments: Payment terms and schedules

7. Insurance: Insurance requirements during development and occupation

8. Termination Provisions: Circumstances and procedures for lease termination

Optional Sections

1. Step-in Rights: Additional provisions for lender's rights to take over development when the development is externally financed

2. Pre-letting Provisions: Terms for securing future occupiers, applicable for commercial developments with pre-lets

3. Environmental Provisions: Specific environmental obligations when site has environmental sensitivities

Suggested Schedules

1. Property Schedule: Detailed description of the property and plans

2. Development Specification: Detailed requirements for the development works

3. Planning Permissions: Copies of relevant planning permissions

4. Development Programme: Timeline and milestones for development works

5. Form of Warranties: Template collateral warranties for contractors

6. Service Charge Provisions: Details of service charge calculation and payment

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Landlord and Tenant Act 1954: Core legislation governing landlord-tenant relationships, particularly regarding security of tenure provisions and the ability to contract out of the Act's provisions

Law of Property Act 1925: Fundamental property law legislation covering requirements for creation of legal estates, formalities for leases, and registration requirements

Land Registration Act 2002: Governs the registration of land and property interests, including requirements for registration of leasehold interests and priority of interests

Town and Country Planning Act 1990: Primary planning legislation controlling land development and use, essential for any development project

Planning (Listed Buildings and Conservation Areas) Act 1990: Specific legislation for protected buildings and conservation areas, crucial if development affects historic or protected structures

Building Act 1984: Sets out building control system and requirements for construction works

Building Regulations 2010: Detailed technical requirements for building works and standards that must be met in construction

Environmental Protection Act 1990: Framework for environmental protection including waste management and contaminated land

Environment Act 2021: Recent environmental legislation setting new requirements for development including biodiversity net gain

Housing Grants, Construction and Regeneration Act 1996: Also known as the Construction Act, governs construction contracts including payment provisions and dispute resolution

Defective Premises Act 1972: Establishes duties regarding fitness for habitation and quality of construction work

Party Wall etc. Act 1996: Regulates works affecting walls or boundaries shared with neighboring properties

Health and Safety at Work Act 1974: Primary legislation for workplace safety, crucial during development and construction phases

Infrastructure Act 2015: Legislation governing infrastructure and utilities, including provisions affecting development projects

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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