51Tenants to be compensated for damage to retail premises

51 Tenants to be compensated for damage to retail premises

A retail lease is taken to provide the following if the retail premises, or the building in which the retail premises are located, is damaged:

(a) except where the tenant caused the damage, contributed substantially to the damage or took action that resulted in the termination of the landlord’s insurance policy –

(i) the tenant is not liable to pay rent, or any amount in respect of outgoings, that is attributable to any period during which the retail premises cannot be used under the retail lease or are inaccessible due to that damage; and

(ii) if the retail premises can be used under the retail lease but that use is reduced to some extent by the damage, the tenant’s liability for rent, and any amount in respect of outgoings, that is attributable to any period during which the use is reduced, is decreased to the same extent;

(b) if the landlord fails to repair the damage within a reasonable time after the tenant requests the landlord in writing to do so, the tenant, in addition to any other rights that the tenant may have under the retail lease, may terminate the retail lease by giving not less than 7 days’ written notice of termination to the landlord.