Introducing the Lease Streamlining Process

TMCP are pleased to launch a new process for leases which is now ready for Managing Trustees to follow. Alongside the Sales and Purchase streamlining processes, TMCP has developed a streamlined approach to leases – available when you instruct one of the firms of solicitor on the Methodist panel (‘Panel Firms’).

The new streamlined process for leases enables and encourages you to contact TMCP early, before starting any negotiations with potential tenants. Under the process TMCP will provide initial support to enable you as Managing Trustees to put together the terms on which your charity can best lease your property – bearing in mind your ongoing requirements and taking into account Methodist law and leasing policy. This should help to avoid situations where you have negotiated terms directly with a proposed tenant only to discover that those terms may not be in line with Methodist and charity law requirements. We are here to help you reduce the time it takes to negotiate and put in place leases so that you can start receiving rent earlier or your collaborative project gets underway more quickly.

First steps

Like the other streamlining processes, we will invite you to an early check-in meeting with us and encourage you to start completing the Lease Check-In Questionnaire with key information. We will provide template heads of terms for you to use and go through the Methodist law and policy requirements which determine some of the terms on which the property will need to be let when we meet. This will help you to draw up your heads of terms following the meeting, obtain the advice you need from your surveyor/designated adviser at that point and then find and agree terms with your tenant.

Once lease terms are agreed

From this foundation, the process then equips you to fulfil the charity law and Methodist requirements on a lease as quickly and efficiently as possible with the help of TMCP and your chosen Panel Firm. Only once you have an agreed set of terms, will you instruct your Panel Firm to draft the lease and deal with the enquiries raised by your tenant’s solicitors in the run up to completion, which will save time and money. We have found through experience, and with speaking to the Panel Firms, that one of the most frequent ways costs increase in lease transactions is when solicitors are instructed too early or they are asked to be involved in agreeing heads of terms. To help Managing Trustees we will guide you through the correct process to ensure that the right professionals are instructed at the right time.

Why follow the process?

Follow the process to:

• Obtain the help that is available to you as Managing Trustees from TMCP before incurring fees.
• Avoid wasting time and potential reputational damage by only agreeing terms with your tenant that you know can be accepted because they are compatible with Methodist law and policy and follow the advice of your designated adviser.
• Avoid incurring unnecessary legal fees by involving solicitors too early e.g. before you have agreed heads of terms.
• Reach completion as smoothly as possible.

Where can I find more information?

The lease streamlining process is built around six key stages. See the Lease Streamlined Flowchart for details of the steps to be taken by Managing Trustees, TMCP and the Managing Trustees’ professional advisers at each stage.

Please go to the Streamlining Page for guidance on the process and links to the available resources including the Lease Check-In Questionnaire and keep an eye on further announcements about training for Managing Trustees. We will provide additional specific guidance at your check-in.

If you have any questions about any of the streamlining processes and making use of this process then please contact TMCP Legal and we will be happy to discuss this in more detail with you.