Meanwhile Use Leases are helping landlords and tenants to make temporary non commercial use of shops that become vacant during the recession.
The government has so far committed £5,600,000 to 107 local authorities to help them find new temporary uses for vacant shops. It is envisaged that occupiers will include voluntary or charitable groups, information centres and local artists and musicians thus contributing to town centre vitality.
MULs were introduced by Communities and Local Government (CLG) on 4 November 2009. They provide industry standard legal instruments aimed to minimise administrative and legal costs for landlords and tenants. Properties will often be occupied on a rent free basis but in return landlords are able to reduce their overheads, avoid empty property rates and ensure that the building is maintained while they seek a permanent business tenant. The intention is that the temporary occupier will occupy the property for a period of days, weeks or a few months by means of a short form “contracted out” lease that avoids rights of security of tenure and both the occupier and the landlord will have the right to terminate the arrangement at short notice.
Where there are planning issues with a potential use of a property CLG is considering measures to allow local planning authorities to establish Local Development Orders to allow a greater freedom of movement between Use Classes without the need for specific planning permission. No specific guidance has as yet been issued but some authorities are preparing LDOs as part of a pilot scheme administered by the Planning Advisory Service and funded by the government. MULs have been used in Hastings as part of its “Meanwhile Project” to bring several empty buildings back into use and there is widespread interest in the scheme across the country.
If you require any further advice or assistance please contact
Jane Winfield or a member of the Property team at Wortley Byers on 01277
268314 or jwinfield@wortleybyers.co.uk.
