Rics and BRC create simple lease for high streets

19 December 2011

Written by Steve Olejnik

A lease has been produced through an initiative between the British Retail Consortium (BRC) and the Royal Institution of Chartered Surveyors (Rics) that should provide an easy-to-use and simple contract for landlords and high street businesses.

Commercial mortgage holders and other property owners may benefit from this document, which is a short-term, standalone policy containing no break clauses or rent reviews, in order top provide stability for small business and start-ups regarding real estate costs.

Making poor choices when taking out a lease can result in catastrophic damages to an enterprise, the organisations claimed.

The document should also speed up the process of contract negotiations and will enable small businesses to demonstrate property costs when making requests for finance.

BRC director of business Tom Ironside said: "It's in everyone's interests for new businesses to be able to open on the high street with as little difficulty as possible."

This follows the Portas Review, which was commissioned by the Department for Business, Innovation & Skills and called for a reconsideration of the roles of landlords in commercial property.