Commercial Leasing

Why is Commercial Leasing?

A commercial lease is an agreement between a landlord and a business for the rental of a property. It allows a business to use a property for commercial purposes, and it sets out the rights and obligations of the landlord and tenant.

The lease gives you the right to use the property for business or commercial activity for a set period of time. In return for this, you will pay money to the landlord. The lease will also outline the rights and responsibilities of both the landlord and the tenant during the lease period.

Fixed price Standard Lease = £500 plus VAT
Registered Leases = £750 plus VAT

Please contact our office on 01274 737 001 to discuss further.

What is included in the commercial lease?

A commercial lease typically deals with the following:

the type of property being let;
the address of the property being let;
the term of the tenancy and whether the tenancy is for a fixed term or renews periodically;
the amount of rent payable, how often and when the rent should be paid;
the type of business that may be conducted on the premises;
ownership of any leasehold improvements; and
the provisions of any security/damage deposit.

In addition, a commercial lease may also identify the following:

provisions for lease renewal;
landlord improvements and signing incentives;
tenant improvements;
whether the tenant can assign or sublet the property:
notice provisions for termination of the tenancy; and
insurance provisions.

Do i need a commercial lease?

You need a commercial lease if you wish to carry on your business in a specific space. A commercial lease frames the relationship between landlord and tenant and outlines the business purposes for which a property can be used. A carefully written commercial lease is essential to carry on your business properly because, as a tenant, you can only use the property for purposes that have been specifically set out in a ‘permitted use of premises’ clause.

Do you need a solicitor for commercial lease?

Seeking advice from a commercial property solicitor is not required, but it is strongly recommended if you are looking to enter into a commercial lease. The solicitor will review the lease and ensure the tenant is protected and they are aware of all conditions in the lease. It is likely that the Landlord will have legal representation.

Before you sign a commercial lease, you should think about the elements of the lease. If you can, choose a short-term lease. They are ideal for businesses looking to grow, as a short-term lease gives them flexibility and they are more low-risk, allowing business owners to choose bigger properties as the SME grows and develops.

You should also be wary of any hidden costs when signing a commercial lease, which your lawyer will be able to flag upon reviewing the contract. Make sure you factor in repairs and also include a break clause in the contract to allow you to terminate the agreement without facing any penalties if you need to.

In terms of who pays for a commercial lease agreement, it’s usually the tenant who covers the cost of drawing up the lease document, but this can be agreed by the lawyers of the two parties.

Who is responsible for repairing and maintaining the property?

In most cases, the tenant will be responsible for keeping the property in good repair. If you are taking a lease of property which is not in a good state of repair when the lease is granted, you may find that you are legally obliged to remedy that disrepair. It is for this reason that we always advise that you obtain a survey. If disrepair is found before the lease is granted, it is possible to limit your liability by reference to an agreed schedule of condition which records the condition of the property at the start of the lease.

Landlords also expect the property to be regularly re-decorated and they may require carpets to be renewed and plant and equipment to be replaced. It is important for you to understand the extent of your repairing and redecoration obligations at the outset. Depending upon the nature of the property and the length of the lease, it may be possible to negotiate more limited repair/decoration liabilities.