UKRAINE Law and Practice Contributed by: Timur Bondaryev, Maryna Sharapa, Andrii Pidhainyi and Olena Yurets, Arzinger
tions, the lease is renewed for another term on the same conditions. To avoid this, the lessors usually explicitly pro - hibit this in the lease agreements. Also, the law provides for a penalty in the amount of double daily rent for each day of delay in returning the real estate. 6.18 Right to Assign a Leasehold Interest Ukrainian law only allows assignment subject to the other party’s written consent. The lease agreements usually use the same provision or prohibit any assignment whatsoever. On a relat - ed note, the lease agreements may allow sub - leasing, but also subject to the lessor’s explicit consent. That said, the lenders usually insist on rent assignment covenants as a collateral, and com - mercial terms of leases are often subject to approval by the lenders. 6.19 Right to Terminate a Lease The right to terminate a lease largely depends on the parties’ negotiations. It is common for a strong lessee to seek a unilateral termination right without having to justify the decision. The law provides that the lessor may terminate the lease if the lessee: • uses the property against the designated use or in breach of the agreement; • has subleased or assigned the lease to a third party without the lessor’s consent; • by their negligence poses a threat to the property; or • did not conduct a capital repair if they were so obliged under the agreement.
The lessor may also sue the lessee for termi - nation if the lessee systematically violates the payment obligations. The lessee may terminate the agreement if the property does not correspond to the require - ments set out in the agreement, or if the lessor does not perform its obligation regarding capital repair of the property. 6.20 Registration Requirements A lease relating to a building, capital structure or a part thereof exceeding three years is subject to mandatory notarisation and to registration with the property register for its validity. The lease and other property rights are registered in the State Register of Property Rights to Immovable Prop - erty and their Encumbrances. The land lease is also registered in the State Land Cadastre. The fees include a notarisation fee and a regis - tration fee. It is common for the lessee to pay the fees; however, the notarisation fee can also be paid by the parties in equal parts or by the lessor, though this is quite rare. 6.21 Forced Eviction The lessee may be evicted after termination of the agreement (either by the lessor unilaterally or by expiry of the term of the lease). If done outside court, this is subject to the agree - ment’s regulation. A common procedure estab - lished in the agreement is that the lessor collects the lessee’s property from inside the leased real estate and stores it at the lessee’s cost; if the les - see does not collect its property within the term stipulated by the agreement (usually around ten business days), the lessor may dispose of the property at its discretion.
1101 CHAMBERS.COM
Powered by FlippingBook