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A wide open warehouse available to let

Leases

A sign with To Let written on it.

Commercial Property Leases

This is an area where it is always worth taking knowledgeable legal advice. Leases for commercial property are often relatively complex, and it is important that you fully understand the implications and obligations in order to avoid costly mistakes. These are some of the key issues to consider.

A car parking space with 'Visitor' written on the first of the month.

Length of Term

In recent years there has been a growing tendency for Tenants to seek shorter terms. There are a number of pros and cons for both the parties to a commercial lease in this respect and it is worthwhile seeking advice to help establish the approach most suitable for your business and position.

A calendar with 'Rent due!' written on it.

Rent, rent reviews and break clauses

It is important to seek professional advice to establish the fair rent for the premises. You should also consider whether your lease should contain an ‘option to determine’, or in other words, whether the Landlord and Tenant should be entitled to break the Lease at some point during the term.

A house with scaffolding on it.

Obligation to Repair

It is important that the Tenant fully understands the extent of his obligation to repair, whether this is an internal repairing liability, a full repairing liability and/or a liability to refund a proportion of the costs incurred by the Landlord in repairing a building of which the premises form a part.

A pair of keys being handed over.

Assignment or Sub-letting

When agreeing the terms for a commercial lease, the Landlord and Tenant should consider the arrangements for assignment or sub-letting.

A room in the middle of having alterations done.

Alterations

Most Landlords will wish to keep total control over the structure of the building and carefully drafted Lease should reflect this. However, a Tenant should consider whether he might need to make structural alterations and may wish to include this provision in the Lease. We are experienced at negotiating from both perspectives and can advise you accordingly.

A very clean room with a light walls and a laminate floor.

Improvements

A Lease should state how a Tenant’s improvements are to be reflected when the rent is reviewed, particularly where the tenant has carried out extensive re-fitting works.

A 'to let' sign.

The Authorised use of the Premises

The Landlord should usually ensure that the "User" provisions in a Lease prevent a Tenant from changing its use to one which attracts a lower rental value than the use the Landlord intends. Equally, most Tenants will wish to make sure that the user provisions in the Lease allow him as much flexibility as is reasonable, so that if he has to assign the Lease, he is not unduly limited when the premises are marketed as to the type of business which the User provisions in the Lease allow to be carried on.

View the code for leasing business premises.
 

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