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Intercompany Lease Agreement

Intercompany Lease Agreement Template for England and Wales

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Key Requirements PROMPT example:

Intercompany Lease Agreement

"Need an Intercompany Lease Agreement for our UK subsidiary to lease office space from our parent company in Manchester, with a 10-year term starting March 2025 and break options every 3 years."

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Document background
The Intercompany Lease Agreement is essential for corporate groups managing internal property arrangements in England and Wales. It's used when one group company lets property to another, requiring careful consideration of both property law and group relationships. The agreement must comply with standard lease requirements while addressing specific intercompany considerations such as transfer pricing, group reorganization flexibility, and internal governance requirements. It typically includes detailed provisions for rent, service charges, maintenance obligations, and group-specific arrangements.
Suggested Sections

1. Parties: Identification of landlord and tenant companies, including registered addresses

2. Background: Context of the lease and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Demise: Description of the property being leased

5. Term: Duration of the lease

6. Rent: Rental payments and review provisions

7. Tenant Covenants: Tenant's obligations under the lease

8. Landlord Covenants: Landlord's obligations under the lease

9. Insurance: Insurance obligations and requirements

Optional Sections

1. Break Clause: Early termination provisions - used when parties want flexibility to end the lease early

2. Service Charge: Provisions for shared services and recovery of costs - used when property is part of larger building/estate

3. Alterations: Rights to modify the property - used when tenant may need to make changes to the property

Suggested Schedules

1. Schedule 1 - Property Description: Detailed description of the leased premises including plans

2. Schedule 2 - Rights Granted: Specific rights granted to the tenant

3. Schedule 3 - Rights Reserved: Rights retained by the landlord

4. Schedule 4 - Service Charge: Detailed service charge calculations and included services

5. Schedule 5 - Rent Review: Detailed rent review provisions and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Landlord and Tenant Act 1954: Core legislation governing business tenancies, particularly Part II which deals with security of tenure for business tenants and procedures for lease renewal and termination

Law of Property Act 1925: Foundational legislation establishing basic principles of property law and requirements for creating legal interests in land

Landlord and Tenant (Covenants) Act 1995: Governs privity of contract and estate, and regulates the assignment of leases and guarantees

Law of Property (Miscellaneous Provisions) Act 1989: Sets out requirements for execution of deeds and formal requirements for contracts relating to land

Landlord and Tenant Act 1985: Specifies landlord's repairing obligations and service charge provisions

Landlord and Tenant Act 1988: Contains provisions regarding landlord's consent for assignment and subletting

Companies Act 2006: Specifies requirements for execution of documents by companies and regulations regarding related party transactions

Finance Act 2003: Contains provisions regarding Stamp Duty Land Tax implications for lease agreements

Code for Leasing Business Premises: Industry code providing best practice guidelines for commercial leasing

Transfer Pricing Regulations: Ensures intercompany transactions are conducted on arm's length terms

Health and Safety at Work Act 1974: Sets out health and safety obligations for commercial premises

Environmental Protection Act 1990: Establishes environmental obligations and standards for commercial properties

Energy Performance of Buildings Regulations: Specifies requirements for energy performance certificates and minimum energy efficiency standards

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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