Consider this if…
- You are being offered a lease or licence over Crown or council-managed land
- Your premises sit on land owned by the State, a council or a public authority
- You need approval to assign, sublet or alter the premises
- You want to build or fit out on land you occupy under a Crown lease
- You are buying a business that occupies government land
- Your Crown lease or licence is approaching the end of its term
How it works
Send us the documents and the title
The lease or licence, any offer or letter from the authority, and the title details. What kind of land it is, and who controls it, determines everything that follows.
Today
We identify who has to approve what
Whether the party granting the interest can grant it alone, and which dealings need approval from someone else. This is the question that most often catches people.
First thing we do
We review the terms that matter
Permitted use and any public-purpose constraint, term and renewal, rent and review, works and fit-out approvals, assignment and subletting, and what happens to improvements at the end.
With the review
We advise on what can realistically be negotiated
Public landlords work to standard forms and have less freedom to vary them than private landlords. Knowing which requests are worth making saves time on both sides.
With the review
We handle the dealing
Assignment, sublease, licence, variation or surrender, including the approval process that goes with it.
Quoted before we start
Fee
Quoted in writing before we start
GST inclusive
We quote a fixed fee in writing before any work begins.
A different kind of landlord
A private landlord can agree to anything it likes. A public one cannot. Land held by the State, a council or a public authority is held for a purpose, and the lease or licence granted over it has to sit within that purpose and within the powers of the body granting it.
That has practical consequences for a tenant. The document is usually a standard form. The permitted use is often tied to the purpose the land is held for, and changing it is not simply a commercial negotiation. Consents that a private landlord would give in a week can require approval from someone who is not the landlord at all.
Establish the land and the controller first
"Crown lease" covers a range of arrangements. Before anything else we establish what the land actually is, who owns it, who manages it, and what authority they have to grant and vary the interest you are being offered. Everything else — including whether the document is properly a lease or a licence — follows from that.
What to look at in the document
Permitted use. Frequently narrow and tied to a stated purpose. If your business plan involves doing more than that, resolve it before signing.
Term, renewal and security. How long, whether renewal is available, and on what basis. Where a tenant is investing in buildings or fit-out, the term needs to be long enough to justify the capital.
Works and fit-out. Approval is usually required and can involve planning, heritage or environmental considerations on top of the landlord's own process.
Dealings. Assignment, subletting and licensing — what approval is needed and from whom. If a future sale of your business depends on transferring the occupation, this clause is the sale.
Rent and review. Often set by reference to a policy or valuation process rather than negotiated.
End of term. What happens to your buildings, improvements and fit-out. Because the money is spent at the start and the clause operates at the end, this is the provision most worth getting right early.
Where it matters most
Three situations bring people to us on this. Taking on premises without realising the land is Crown or council-managed. Buying a business whose premises sit on government land, where the transfer needs approval nobody has started seeking. And approaching the end of a term with substantial improvements in place and no clarity about what happens to them.
All three are easier addressed early. Send us the document and the title details and we will tell you what you are dealing with.
Frequently asked questions
What is a Crown lease?
Broadly, a lease of land owned by the State rather than held in ordinary private freehold — including land managed by a public authority, a council or a committee of management. The label covers a range of arrangements, so the first step is always to establish exactly what the land is and who controls it.
How is it different from a normal commercial lease?
The landlord's powers are constrained rather than commercial. Permitted use is commonly tied to a stated purpose, dealings such as assignment or subletting usually require approval beyond the immediate landlord, works and fit-out are more tightly controlled, and the treatment of improvements at the end can differ from private leasing practice.
Can I assign or sublet a Crown lease?
Often, but generally only with approval, and the approval process is usually more involved and slower than obtaining a private landlord's consent. If a business sale depends on it, allow for that in the timetable and start the process early.
Do the retail leasing protections apply?
That has to be checked case by case rather than assumed in either direction, because it turns on the nature of the land, the identity of the landlord and the use of the premises. We look at it as part of the review.
What happens to my buildings and improvements at the end?
It depends on the document, and the answer is frequently less generous than tenants expect. Because the capital is usually committed up front, this is a clause to resolve before signing rather than at the end of the term.
Can these terms be negotiated?
Some can. Public landlords generally use standard forms and have limited scope to depart from them, but there is usually room on use, works approvals, dealings and end-of-term treatment. Knowing where the room is avoids spending weeks on requests that will never be granted.
Related services
Include the title details and any letter from the authority.
Send us the Crown lease