LEASES IN GUERNSEY

Prior to entering into either a commercial or residential lease, including any such assignment and/or sub-lease, it is essential to take the appropriate legal advice as to the terms and conditions of the same and any potential legal ramifications that may occur as a result.

There is no landlord/tenant legislation in the Bailiwick of Guernsey and, hence, all authority stems from the Common Law position prior to the enactment of legislation.

Commercial Leases

With particular regard to commercial leases, in addition to the usual pitfalls one would expect to check for in a lease, (for example, rights of access, repair and decoration covenants, etc.) one should give careful consideration to the following:-

Generally

To ensure that all terms are standard and are not overly onerous and/or prejudicial and that all appropriate rights and covenants are granted and protection afforded.

Permitted User

It is essential that the landlord defines the use of the premises and it should be ascertained that any such granted use has been approved by the States of Guernsey under the Island Development (Use Classes) Ordinance, 1991.

Planning and Licences

It is prudent to seek copies of all details relating to the change or alteration of property to ensure all appropriate consents and planning legislation has been followed and obtained under the Island Development (Guernsey Law), 1966 – 1990. In addition, it is also prudent to see copies of all relevant consents and/or licences.

Rent

It is also important to ensure that there is adequate and proper provision for rent review (usually in Guernsey by reference to the increase of Guernsey Retail Price Index or GRPI) with a proper provision for disputes.

Disputes

It is imperative to ensure that there is adequate and property provision for the settlement of disputes between the parties by reference to the appropriate experts and arbitration under the Arbitration (Guernsey) Law, 1982 and 1986.

Residential Leases

With regard to residential leases, as above, one must ensure that the terms are not overly onerous or unencumbent and all necessary rights and covenants are granted and appropriated protections afforded.

In addition, if you are considering purchasing property in Guernsey for investment purposes and intend leasing the same or are purchasing property with existing tenants, one should obtain the appropriate legal advice with regard to the Stay of Eviction Laws, 1946 and 1954.

The aforementioned empower the Court to make an Order that an execution for eviction of a tenant or sub-tenant can be suspended during any such term and upon such conditions as the Court may consider reasonable having taken into account the position of the parties. The Amendment Law extended this power to enable the Court to stay and eviction of an occupier, as opposed to a tenant, for a period not exceeding six-months.

The Court will give consideration to the following :-

Whether any rent lawfully due from the tenant has not been paid or whether any other obligation of tenant has been broken or not performed.

Whether there is suitable alternative accommodation available for the tenant or whether such will be available when judgment or an Order may take effect.

Whether the tenant, or other person residing therewith, is guilty of conduct which is a nuisance or an annoyance to adjoining occupiers.

Whether the condition of the premises in the opinion of the Court has deteriorated owing to an act, neglect or default of the tenant or other authorised by him.

Whether the tenant has been convicted of using the premises or authorising the premises to be used for immoral or illegal purposes.

Whether the tenant has given notice to quit and, in consequence, the landlord has contracted to sell or let the house or has taken other steps as a result of which he would, in the opinion of the Court, be seriously prejudiced if he could not obtain possession.

Whether the premises consist of, or include, premises licensed for the sale of intoxicating liquor and the tenant or sub-tenant has committed an offence as holder of the licence or has not conducted the premises to the satisfaction of the Court.

Whether the dwelling house is so overcrowded as to be dangerous or injurious to the health of the inmates, and the Court is satisfied that the overcrowding could have been abated by the removal of any lodger or sub-tenant whom it would, in all of the circumstances of the case including the question of whether alternative accommodation is available for him, have been reasonable to remove.

If the Court makes such an Order, delaying the execution of eviction, any person shall be at liberty to apply to the Court, upon showing a change of circumstances arising since the making of the Order, to vary the said Order, thereupon the Court may vary such an Order as the Court may consider reasonable.