{"id":15098,"date":"2018-03-12T00:00:00","date_gmt":"2018-03-12T00:00:00","guid":{"rendered":"https:\/\/clearway.vanillabeancreative.com\/news\/guide-to-side-letters\/"},"modified":"2024-04-05T11:16:27","modified_gmt":"2024-04-05T11:16:27","slug":"guide-to-side-letters","status":"publish","type":"post","link":"https:\/\/www.clearway.co.uk\/news\/guide-to-side-letters\/","title":{"rendered":"Guide To Side Letters"},"content":{"rendered":"<p>Side letters are often used in commercial property to grant certain concessions to tenants when certain aspects of a lease such as clauses or rent need to be adjusted. Even though the use of a side letter is common in these cases, it may not provide sufficient protection for landlords if a tenant decides to contest it in court.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>So side letters, while offering a useful addition to an agreement between the tenant and landlord, should not be seen as necessarily legally binding unless all the required boxes have been ticked in when drafting the agreement. Failing to do so can leave a landlord vulnerable\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>Vivienne Westwood v. Conduit Street Developments Limited (2017) provides one example of a side letter being seen as landlord biased. The side letter contained an agreement that the tenant pay a lower rent for the first 10 years of a 15-year lease.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>When the landlord subsequently attempted to terminate the side letter when the rent was paid late, the tenant was able to successfully argue that the landlord\u2019s decision to terminate the side letter acted as a penalty.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>It is also important to note that side letters only apply to the parties in the agreement and cease to apply when there is a change of landlord or tenant and this itself can cause problems if the change isn\u2019t disclosed to the parties concerned.\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p>If you are in any doubt about the validity of a side letter, take legal advice from an appropriately qualified solicitor.\u00a0\u00a0<span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Side letters are often used in commercial property to grant certain concessions to tenants when certain aspects of a lease such as clauses or rent need to be adjusted. Even though the use of a side letter is common in these cases, it may not provide sufficient protection for landlords if a tenant decides to&#8230;<\/p>\n","protected":false},"author":12,"featured_media":16035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"area":[50],"class_list":["post-15098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","area-evictions-debt-recovery"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Guide To Side Letters - Clearway<\/title>\n<meta name=\"description\" content=\"Guide To Side Letters - Read the full story here at Clearway - leaders in property protection - securing tomorrow today.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.clearway.co.uk\/news\/guide-to-side-letters\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guide To Side Letters - 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