Commercial lease code gains approval - commercial mortgages

31 August 2007

The new Commercial Lease Code, designed to avoid the chance of costly landlord-tenant disputes arising, has found favour with a large proportion of industry figures, it has been revealed.

More than 80 per cent of housing professionals consider the new code will be successful in eliminating such disputes, a study from Lockton Real Estate & Construction has found

The improved transparency that the code will bring was a major factor in this assessment, Easier.com has reported.

"Disputes between landlord and tenant often arise as a result of misunderstanding and misinformation," commented Richard Owen of Lockton Real Estate and Construction, according to the website.

The new Commercial Lease Code looks to spell out the process so that there is effectively a check-list before any deal is even entered into.

"Although the code is voluntary, I am sure that the government will be keeping a close eye on the market," Mr Owen added.

Earlier this week commercial property investors were advised to invest closer to home rather than putting their money into lesser-known areas.