The Intercompany Lease Agreement is essential for corporate groups managing internal property arrangements in England and Wales. It's used when one group company lets property to another, requiring careful consideration of both property law and group relationships. The agreement must comply with standard lease requirements while addressing specific intercompany considerations such as transfer pricing, group reorganization flexibility, and internal governance requirements. It typically includes detailed provisions for rent, service charges, maintenance obligations, and group-specific arrangements.
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1. Parties: Identification of landlord and tenant companies, including registered addresses
2. Background: Context of the lease and relationship between the parties
3. Definitions: Key terms used throughout the agreement
4. Demise: Description of the property being leased
5. Term: Duration of the lease
6. Rent: Rental payments and review provisions
7. Tenant Covenants: Tenant's obligations under the lease
8. Landlord Covenants: Landlord's obligations under the lease
9. Insurance: Insurance obligations and requirements
1. Break Clause: Early termination provisions - used when parties want flexibility to end the lease early
2. Service Charge: Provisions for shared services and recovery of costs - used when property is part of larger building/estate
3. Alterations: Rights to modify the property - used when tenant may need to make changes to the property
1. Schedule 1 - Property Description: Detailed description of the leased premises including plans
2. Schedule 2 - Rights Granted: Specific rights granted to the tenant
3. Schedule 3 - Rights Reserved: Rights retained by the landlord
4. Schedule 4 - Service Charge: Detailed service charge calculations and included services
5. Schedule 5 - Rent Review: Detailed rent review provisions and procedures
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