Our commercial property lawyers are experienced in negotiating, identifying hidden risks and dealing with complex issues arising in commercial leases, such as dilapidations and early termination, selling a lease and sub-letting.
Our proactive approach to every transaction keeps you informed and in control so that you can achieve your objectives even against the most demanding of deadlines.
Key considerations and clauses for a new commercial lease
- How long should the lease be?
- What is the type of premises? There will be significant differences for example between a shop lease and an office lease or an industrial unit.
- What condition are the premises in at the start of the lease and what obligations for repair should be incorporated? Is a full repair and insure lease (FRI) appropriate? Is the tenant permitted to make alterations or improvements to the premises and, if so, is permission in some way still conditional?
- Can the lease be terminated early by the tenant? A break clause may be included, often within a longer lease of 5 years or more. There will be related provisions and processes which a tenant will need to comply with, or else risk losing their right to break the lease early.
- Rent review – with a longer lease, expect the Landlord to include rent review clauses. There are many different ways this can be dealt with including fixed formulas. The starting point for negotiations is whether the review provisions will allow for an upward only rent review or whether rent review can be both upward and downward.
- Service charges – what services, if any, are provided and by whom? Is the position clear? As a tenant, is it possible to cap service charges going forward?
Our experience with different types of commercial property
Instructing lawyers who have experience of dealing with the type of premises you’re leasing saves time and money and gives you the reassurance that your interests are protected on the key points.
Streathers will always make sure you’re fully briefed about your legal rights and obligations. Our expertise includes :-
- Leases for retail units including restaurants and pubs;
- Leases for industrial units;
- Licences such as co-working spaces;
- Office leases;
- Mixed use commercial and residential properties.
Commercial lease disputes
Unfortunately, disputes do regularly arise with commercial leases. Common types of disputes where we can assist include :-
- Service charge disputes;
- Dilapidations and disrepair disputes;
- Forfeiture for breach of lease, typically for non-payment of rent;
- Disputes where the tenant wishes to assign or sub-let and the landlord refuses consent;
- Rent review issues.
If you are a landlord or tenant who needs practical commercial property lawyers for advice on lease terms, or perhaps you are a landlord who needs a commercial lease drafted, please get in contact and our solicitors will be happy to discuss your needs. We can also advise where there is an existing lease and you are a tenant considering taking an assignment of that lease, or perhaps sub-letting. Please call us for a discussion or quote.
