Project Westfield

PROJECT WESTFIELD

RESIDENTIAL LEASES

1. Not subject to VAT, 25%.

Internal maintenance and repairs 6 External maintenance and repairs 7

Rent quoted in 1

DKK gross p.a.

Negotiable

2. For multi-let properties including a proportionate part of common parts, including stairs, lifts, etc.

Floor areas 2

Gross external

Landlord is responsible

3. The tenant is typically entitled to terminate the lease at three months’ notice.

Lease term 3

‘For time and eternity’

Common parts

Landlord is responsible

Breaks

None

Building insurance

Landlord is responsible

4. Applicable to buildings occupied after 31 December 1991 subject to agreement. Rules on cost regulated rent control (in Danish: ‘omkost ningsbestemt husleje’) may apply to buildings occupied prior to this date. 5. Utility value review may be applied for either party every two years. This mechanism applies if the lease is not governed by the rules of cost regu lated rent control, cf. (4). 6. According to the Danish Rent Act, internal maintenance and repairs comprises whitewashing, painting, wallpapering and lacquering of floors. Most often, it is negotiated to be the obligation of the tenant. 7. According to the Danish Rent Act, external maintenance and repairs cover all works apart from white washing, painting, wallpapering and lacquering of floors, hence also parts inside the residential unit. 8. Alternatively, 50% of the rooms in the flat if no more than two persons live in each room. The total number of residents may not exceed the number of rooms. 9. Existing tenants in residential properties governed by the Danish Rent Act may have a pre-emption right to acquire the property in case of a direct or indirect sale.

Rent payment

Monthly in advance

Property taxes

Landlord is responsible

Deposit and prepaid rent 4 Basis of rent adjustment

3-6 months

Subletting 8

Yes, 2-year maximum

NPI

Right of assignment

Yes, in swap

Frequency of rent adjustment

Annual

Restoration

Negotiable

Rent review 5

Every 2 years

Pre-emption 9

Danish Rent Act

2015 legislative amendments

Effective as of 1 July 2015, the Danish Parliament amended the provisions gov erning residential leases on several counts. Following these provisions, the owner of a residential rental property is required to prepare written move-in and move-out reports. According to the amended rules, the land lord can no longer demand that a residen tial tenant undertakes the restoration of the lease premises to a newly refurbished state upon lease expiry, even if the lease premises were newly refurbished at the time of lease commencement. However, the landlord may demand that the tenant

restores the premises to a standard refur bished state and condition.

Further, the so-called stepped-rent regu latory provisions of residential leases have been abolished. It is therefore no longer possible to adjust the rent by a fixed-per centage annual increase of e.g. 2% or 3%. Instead, the rent on residential leas es commissioned after 30 June 2015 is to be adjusted annually in step with the in crease in NPI. Information provided in the table below is intended for guidance only and reflects typical practices for residential leases.

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