June 2023 - Tees Law

Quarter days explained

Posted on 22 June 202310 July 2025 by Sarah O'Sullivan

Many leases provide for annual rent to be paid in four equal instalments “on the usual quarter days” and clients are often surprised to learn that these are 25th March, 24th June, 29th September and 25th December.

What are the usual quarter days?

These days are not, as one might expect, the first days of the first, third, sixth and ninth months of the calendar year and the quarters which result are not all of the same length.

The explanation lies rooted in the past when England was largely an agricultural country and labourers were hired on annual contracts.

Most people could not read or write and so there needed to be a simple system that everybody understood so that they knew when such contracts would begin and end.

The Church was an important part of most peoples’ lives and so the Church’s calendar was followed. Under that calendar each new year began on 25th March (the Feast of the Annunciation) known as Lady Day, so that became the date from which employment contracts ran. That date then also came to be the date from which to calculate other important financial transactions, and further dates evolved upon which payments, including rent, had to be made.

So that these could be remembered easily, important fixed religious feast days were chosen throughout the year, approximately three months apart, to split the year into quarters hence the name “Quarter Days”.

The four quarter days in England and Wales accordingly came to be Lady Day (25th March), Midsummer Day (24th June, the Feast of St John the Baptist), Michaelmas Day (29th September, the Feast of St Michael and all Angels) and Christmas Day (25th December).

Different days tended to be used in Northern England, Scotland and Ireland.

In 1582 Pope Gregory XIII introduced a new calendar, the Gregorian Calendar, to reform the previous Julian Calendar and to bring it more into line with the lunar year so that Easter Day could be calculated. As a result 10 days were skipped over and lost from that year.

In 1752 the law was changed so that each calendar year started on 1st January but the way in which people had become accustomed to pay their rent did not change and the “rent year” continued to commence on 25th March. In many leases, that remains the case to this day.

More modern quarter days

Some landlords have, however, moved away from the traditional quarter days and many modern leases now provide for quarterly rents to be paid on 1st January, 1st April, 1st July and 1st October.

By way of an aside, as well being the first day of the “rent year”, Lady Day was also the start of the tax year. When Pope Gregory introduced his new calendar in 1582 the problems associated with the loss of the ten days were too much to cope with so the start of the tax year remained as the “old” Lady Day. This became 6th April under the new calendar which explains why, more than 400 years later, this remains for us the date upon which each new tax year starts.

Considering leasing your land for a solar farm project?

Posted on 21 June 20239 July 2025 by Sarah O'Sullivan

Solar farms, also known as solar fields or solar parks, are the large-scale application of solar photovoltaic (PV) panels to generate green, clean electricity at scale, usually to feed into the national grid. Solar farms can cover anything between 1 acre and 250 acres and are usually developed in rural areas.

Approximately 25 acres of land are required for every 5 megawatts (MW) of installation – see our checklist below to find out if your land may be suitable.

As well as providing you with an additional income stream, there are a host of other environmental benefits associated with solar farms. Embracing solar farms as part of your land diversification strategy contributes to a sustainable and prosperous future both for you, your family and society as a whole.

What are the benefits of solar farm land diversification?

Stable income – leasing or selling the land for solar farm development provides an increased, diversified and stable source of income for you as a landowner. This can enable financial security and potential long-term revenue streams.
Reversible land use – solar farms represent a time-limited, reversible land use option for landowners. Unlike permanent infrastructure, such as buildings or roads, solar farms can be decommissioned relatively easily, allowing the land to be repurposed for other agricultural or developmental activities in the future.
Efficient use of land – one of the remarkable aspects of solar farms is their ability to generate substantial electricity while occupying a relatively small portion of land. For instance, installing 10,000 megawatts (MW) of solar capacity on the ground in the UK would only utilize 0.1% of the country’s agricultural land area. Despite occupying a small fraction of available land, this solar capacity could generate enough electricity to power over 3 million homes. This efficient land utilisation allows for the coexistence of agricultural activities alongside renewable energy generation.
Significant energy generation and carbon reduction – solar farms have a significant impact on energy production and carbon reduction. With every 5 MW of installed capacity, a solar farm can annually power more than 1,500 homes. Considering the average annual household electricity consumption of 3,300 kWh, this represents a substantial contribution to meeting energy demands. Moreover, the environmental benefits of solar farms are evident in the reduction of carbon dioxide (CO2) emissions. A solar farm with a 50 MW installation can save approximately 21,500 tonnes of CO2 annually, contributing to mitigating climate change and improving air quality.
Grid resilience and energy independence – distributed solar farms across various locations contribute to grid resilience and energy independence. By decentralizing energy generation, solar farms reduce the dependence on a single centralized power source, minimizing the risk of widespread outages. In cases of extreme weather events or natural disasters, solar farms can continue to generate electricity, providing essential power supplies to nearby communities. This resilience helps ensure a stable and reliable energy infrastructure.
Land conservation and biodiversity promotion: solar farm land diversification can be designed to incorporate conservation measures, supporting local ecosystems and biodiversity. By implementing pollinator-friendly vegetation, such as wildflowers or native grasses, solar farms can serve as habitats for bees, butterflies, and other beneficial insects. These efforts contribute to the preservation and restoration of wildlife populations, enhancing biodiversity in the surrounding areas. Additionally, by preventing agricultural land from being converted into urban or industrial areas, solar farms can play a role in conserving valuable natural resources.
Community and economic development: Solar farms can have a positive impact on local communities by fostering economic development. During the construction phase, solar farms create job opportunities, providing employment for local workers and boosting the local economy. Furthermore, solar farms can establish partnerships with neighbouring communities, supporting educational initiatives, renewable energy awareness campaigns, and community-based projects. This collaboration promotes a sense of ownership and involvement in the transition to clean energy, creating a more sustainable future.

Is my land suitable for a solar farm?

This checklist gives a guide as to the likely suitability of your land for a solar farm project and things you should consider:

Is the land flat? If not, what is its gradient and orientation? The incline of the proposed land impacts the ease of building and access.
Is there access to the site? Roads and paths will be essential for construction vehicles and crews to enter and exit the construction site. As part of the solar project, the developer may wish to install accessways or enlarge what is already there.
Is the ground rocky? How deep is the topsoil? Rocky ground may be more challenging to build on or insert ground mounts into. Topsoil depth also affects the structural stability of foundations.
Is the proposed location of the solar panels in an Area of Outstanding Natural Beauty (AONB) or a national park? It is unlikely that a solar farm will receive planning consent if it is located within either of these two categories of land.
Can the field be seen from a road? If the site is visible from the road there may be additional planning considerations due to the perceived impact on the visual amenity of the area which refers to the views and surroundings that comprise the backdrop to an area.
Is there any substantial energy consumption on the premises? You need to factor in whether the proposed solar farm is being considered for powering and offsetting the electricity bills of commercial premises.
Where is the nearest substation/power connection? Proximity to a substation or power connector is desirable because voltage drop/power losses through power cables increase with distance. The size of the power line is also important: a 33kVa line or above is ideal, however 11kVa lines are also suitable. A developer will need rights to install cabling under your land (and potentially under neighbouring land). In addition, they may well need rights to allow the installation of a new substation on your land.
Is there any existing solar PV installed on the property currently? Installing a new system on a property where one already exists may have an impact on the feed-in tariff eligibility of the first system. Additional electrical connection considerations will also apply to a second system.
Are there any substantial solar PV or wind farm installations nearby? Receiving permission to connect to the grid may depend on the state of the network in the region of the proposed installation. An already high penetration of solar power or wind (both types of ‘distributed generation’) may affect the ease of granting a grid connection permission.

How does the leasing on a solar farm work?

As a landowner, typically you will receive rental income on the leased land, in exchange for a rental income for a fixed number of years – usually around 30 years. Rental payments are index-linked, rising annually with inflation and made in advance from the point at which construction of the site begins.

How Tees can help

The experienced renewable energy team at Tees can advise both developers and landowners at every stage of the property aspects of a solar project. This includes all stages from the early lease negotiations, through to helping secure funding and offering ongoing assistance with the operation of the solar site throughout the term of the lease.

Building Safety Act and Fire Safety Act 2022: Implications for landlords

Posted on 7 June 20238 July 2025 by Sarah O'Sullivan

The Building Safety Act 2022 introduced a considerable amount of new legislation focused on the remediation of building safety defects in existing buildings.

The Regulations have been introduced following the Grenfell disaster and have been designed to shift responsibility for the payment of remediation costs from leaseholders to developers and landlords. In doing so the Regulations have imposed a significant administrative burden on landlords.

The Regulations create a new statutory provision to require landlords and associated persons to pay for remediation works for cladding or other safety defects in residential buildings of at least 5 storeys or 11 metres in height.

The government has also introduced the Building Safety (Leaseholder Protections) (England) Regulations 2022, setting out further details of the practical actions leaseholders and landlords will be obliged to take under the Building Safety Act 2022.

What does this mean for landlords?

For landlords, a particularly burdensome characteristic is the obligation to provide Landlord’s Certificates in the form set out in the schedule to the Building Safety (Leaseholder Protections) (England) Regulations 2022 and the associated documents.

Sections 117-125 and Schedule 8 of the Building Safety Act 2022 makes provision for how the remediation of defects in higher rise buildings will be paid for and particularly the balance of liability between leaseholders and landlords.

Schedule 8 sets out the restricted circumstances in which remediation costs can be passed on to the leaseholders and the extent to which landlords are expected to make contributions.

The Regulations prescribe the form and circumstances in which landlords must provide information to leaseholders to enable them to assess whether they will be required to contribute towards the costs of remedial works by payment of a service charge.

The purpose of the new landlord’s certificate is for the landlord to formally communicate with leaseholders as to if they benefit from those restrictions on the service charge. The landlord within the certificate provides information as to whether it is “responsible”, or whether it meets the contribution condition.

When does a landlord need to provide a certificate?

Landlord’s certificates must be provided in the following circumstances:

(a) when the current landlord makes a demand to a leaseholder for the payment of a remediation service charge.

(b) within four weeks of receipt of notification from the leaseholder that the leasehold interest is to be sold;

(c) within four weeks of becoming aware (either themselves or by notification from another person) of a relevant defect not covered by a previous landlord’s certificate; or

(d) within four weeks of being requested to do so by the leaseholder.

When does a landlord need to provide a certificate?

The certificates are set out in a prescribed form annexed to the Regulations and require a wealth of financial detail and details of works carried out. They must also be accompanied by:

(a) details of the corporate structure of any group of which the landlord is part: this includes the names of any group companies; the beneficial owner of each company; the names of each company’s directors; the names of any persons with significant control and details with regard to any trusts that are part of the corporate structure.

(b) financial details for the corporate group: the landlord’s company accounts as well as, where relevant, accounts for each company in the landlord group, with the net worth certified by a chartered accountant or the finance director of the landlord’s company;

(c) evidence and details as regards work carried out: full details of any persons or joint ventures undertaking work and evidence of the relevant details of the work carried out as well as costs.

Similar evidence will need to be provided for superior landlords and/or any previous landlord who was the landlord on 14 February 2022. Such landlords are obliged to provide this when requested to do so by a current landlord.

Certificates will need to be provided before a landlord can make any demand for a service charge contribution from tenants; in such a case, the certificates are likely to be relevant to all tenants in a building. However, landlords will also have to provide a certificate whenever a tenancy is sold, or whenever a leaseholder requests one, which may mean time consuming updating of the certificate.

What if I do not provide a landlord certificate?

Suppose a landlord certificate is not provided in the form set out in the Regulations. In that case, it is presumed that the landlord was responsible for any relevant defects and no service charge is payable.

It is therefore crucial that landlords who wish to demand a service charge for building safety remedial works comply with the Regulations and provide a landlord’s certificate and associated documents within the required timescales.

Fire Safety (England) Regulations 2022 – What are they?

Following the Grenfell Tower disaster in London in 2017, the government has implemented new fire safety responsibilities which introduces significant changes regarding fire safety. This is part of putting pressure on owners, landlords and building managers in England to address concerns around fire safety assessments and compliance checks. The latest regulations came into force from the 23rd January 2023.

The new legislation is aimed at improving the fire and structural safety risks in multi- occupied residential buildings. The regulations are legislated as the Fire Safety (England) Regulations 2022 and are an amendment to the Regulatory Reform (Fire Safety) Order 2005.

The new regulations implement additional fire safety duties that apply to multi-occupied residential buildings that have at least five storeys or are at least 11 metres in height. The building must contain two or more sets of domestic premises.

Building owners and managers should give careful consideration to the new regulations and whether or not they will apply to their property portfolio. If so, the responsible person should take any relevant action to ensure compliance. Failure to comply with the regulations can lead to the risk of an unlimited fine and/ or imprisonment for up to two years.

Who is responsible for fire safety in multi-occupied residential buildings?

The Fire Safety Order requires a ‘responsible person’ to make a suitable and sufficient assessment of the risks to which relevant persons are exposed, for the purpose of identifying the general fire precautions they need to take,e to comply with the requirements and prohibitions imposed on them by or under the Fire Safety Order.

The responsible person is usually the building owner, but in the case of a residential building, it can be any person who has control of the building such as the managing agent or building manager.

The new regulations aim to create better communication of fire risk information between responsible persons and the residents of the building. The new requirements apply to responsible persons.

What are the new requirements?

These are new requirements for ‘responsible persons’ of mid and high-rise blocks of flats:

provide information to fire and rescue services to help them with operational planning and provide additional safety measures
provide residents with fire safety instructions and information on fire doors.
provide their local fire and rescue service with up-to-date electronic building plans
provide information on the design and materials of their external wall
undertake monthly checks of firefighting lifts, evacuation lifts and other key pieces of firefighting equipment
install a secure information box and wayfinding signage.
required to undertake annual checks of flat entrance doors and quarterly checks of all fire doors in the common part (in mid-rise residential buildings (over 11 metres).

Is subletting an option for unwanted office space?

Posted on 1 June 202310 July 2025 by Sarah O'Sullivan

With multiple economic pressures facing businesses, many are looking at their expenses to see where money can be saved. After salaries, rent is often a business’s largest expense. Post-COVID, many companies have already made investments and adaptations to make working from home possible, and some may well be questioning whether they can save funds on office space, which was empty for months during the pandemic. But what options does a commercial tenant have if they find themselves tied into a lease and paying rent for offices that are now larger than they need?

Subletting commercial property

If the lease does not prohibit subletting, then one option would be for the tenant to find a suitable business to occupy part of the property with them. In this arrangement, the original tenant’s rent commitment to the head landlord would remain, but the original tenant would receive rent from the subtenant and any service charge may be apportioned between the two tenants appropriately. Subletting therefore is a simple way for a tenant to reduce their rent expenditure without having to uproot their business.

The terms of the lease must be read thoroughly before a tenant decides to sublet, not only because this action itself may be prohibited by the lease, but if it’s permitted then it will in all likelihood require the landlord’s consent. Additionally, a tenant will want to be protected should their subtenant cause any damage or nuisance – after all, the original tenant’s repairing and maintenance obligation under the head lease will still apply to the whole property, whether they occupy it or not. Should a tenant wish to negotiate a sublease, legal advice is certainly recommended.

Break clause

An alternative to subletting, it may be that a lease contains a break clause which enables the tenant to bring the lease to an end early. This will of course be the most straightforward way of terminating a lease, however, it’s vital that the break clause is read carefully, and that any and all conditions are met, so as to give a tenant a right the break the lease. It is common for the lease itself to prescribe how a break notice can be served, and when it is then deemed received by the landlord.

It’s imperative that a tenant follows the terms of the lease exactly because any variance can invalidate the tenant’s notice and they may lose the right to bring the lease to an end. Many break clauses are drafted in such a way that if a tenant is not 100% compliant with the terms of the lease, they lose the opportunity to break the lease for the remainder of the lease term, or for several years until the next break date. A tenant should strongly consider seeking the advice of a solicitor in advance of sending a break notice to their landlord.

Assignment

If a tenant has decided that their current office space is excessive, or no longer suits their needs, but their lease does not have a break date, or one soon enough, then assignment may be the best course of action. Assignment is the process whereby the existing lease is transferred to a new tenant.

Again, a tenant should read their lease carefully because assignment can be prohibited in a similar way to subletting, and even if assignment is permitted, it will likely require the landlord’s consent. Quite often, the assignment of a lease has attached to it various conditions on the basis that it’s often a higher risk to the landlord than subletting because the landlord is letting a regular and consistently paying tenant go, and a relatively unknown third party take over the lease. A landlord will almost certainly want evidence of any new tenant’s financial worth and stability, as well as references from those currently doing business with the new tenant. Additionally, the landlord may want the outgoing tenant to enter into an ‘AGA’ – Authorised Guarantee Agreement. An AGA essentially keeps the outgoing tenant ‘on the hook’ for a period of time in the event that the new tenant defaults on the payment of rent in the future.

In most leases, an assignment will not be permitted unless the outgoing tenant enters into an AGA. It’s essential therefore for a tenant to read their lease thoroughly and seek legal advice if they are considering an assignment of their lease.

Surrender

If a lease has no upcoming break date, and if subletting and assignment are prohibited under the terms of the lease, then a tenant has very few options should they want to vacate that property and escape their liabilities under the lease.

However, one remaining option in these circumstances is negotiating a surrender of the lease, that is, bringing the lease to an end early. In some situations, this can be the best commercial decision for landlord and tenant alike. If a lease has only 8 months left to run, for example, and if a new tenant has shown interest in taking a lease of the property, then a landlord would be more receptive to surrendering the lease and ‘locking in’ a new tenant for several years.

Because a tenant is seeking to escape their liabilities and obligations, there is usually a high degree of negotiation involved when it comes to surrendering a lease; more so if a third party is intending to take on a new lease once the existing lease is surrendered. A landlord may impose conditions on the tenant, such as more onerous repair and maintenance obligations or perhaps a ‘reverse premium’, that is, the tenant must pay a sum to the landlord in consideration of the surrender.

Here at Tees, we have experienced commercial property solicitors who can assist you in negotiating and formalising any subleases, assignments or surrenders, so as to maximise your business’ potential for a healthy future during these uncertain times.

Refurbishment for residential development

Just as tenants are reassessing their individual position post-Covid and with other economic pressures, landlords will undoubtedly want to protect their position too. This article has discussed options open to a tenant should they want to reduce their current office space usage, but these options are attractive to a landlord also. For instance, many landlords would sooner permit their tenant to sublet part of a property if that means the original tenant can afford to keep trading, rather than refuse permission to sublet and then risk their tenant becoming insolvent.

Similarly, agreeing to a tenant’s request to surrender a lease may provide the opportunity for a landlord to convert the property and refurbish it for residential or mixed use. The conversion of commercial property to residential use has been increasingly popular over the last decade and this trend may increase if the demand for commercial property declines as a result of the Coronavirus pandemic.

If you are a landlord looking into converting your commercial property to residential use, Tees’ experienced commercial property solicitors and conveyancing solicitors can assist you all the way from the initial review of your title, through to the sale of the residential properties.