Government launches meanwhile use lease templates

Thu 17 Dec 2009

The government has published three meanwhile use lease templates designed to help commercial property owners bring vacant town centre premises back into use.

Empty shops on high streets across the country have been one of the most visible signs of the recession and have also proved costly for landlords, who have suffered from lost income and, in some cases, having to pay empty property rates.

The new leases are intended to help commercial property owners reduce their losses by introducing a simple system that will allow local groups to use vacant properties on a rent-free basis for non-commercial activities.

This will mean artists and musicians will be able to occupy empty shops on a short-term basis in order to showcase their work. It is hoped this will help to attract more consumers back to local high streets and stimulate business for retailers.

Landlords will gain certain legal protections from the meanwhile use leases, such as the ability to get their property back at short notice once they are able to let it on a commercial basis again.

They will also be able to avoid empty property rates and be reassured that their premises will be maintained by the group using them on a short-term, rent-free basis.

Commercial property owners were given further support in the Pre-Budget Report, as Alistair Darling announced that relief on business rates for vacant premises would be extended into the 2010/11 tax year.