Commercial Property Leases
We have experience in advising clients on a wide range of property and real estate issues including the following;
Commercial Property: The lease defines the property and its extent. It is advised that a plan is attached (this may be a requisite if the lease must be registered at the Land Registry).
Landlord and Tenant: The lease names the parties. Solicitors will have to ensure that the Landlord has legal title to the commercial property.
Lease Period: The duration of the term of the lease must be specified. Are there any break clauses for a party to terminate the lease? If so, are there any conditions?
Lease Rent: The lease sets out the amount of rent and how it is payable. Does the commercial property benefit from any rent-free period and are there any Stamp Duty implications on how the lease is structured?
Lease rent review: Will the rent be reviewed (this is standard practice on a five yearly basis)? The review mechanism is specified in the lease (by a surveyor, RPI, upwards/downwards)?
Commercial Property Insurance: It is commonplace for the landlord to insure the commercial property. The lease will define the terms and how the tenant reimburses.
Service Charge: If the commercial property is located in part of a building a service charge may be due to pay for the maintenance of the common parts. How is this calculated or is it a fixed figure?
Repair: The obligation to repair the commercial property must be appropriate to the length of the lease. The shorter the term the more the Tenant should resist onerous repair obligations in the lease.
Alterations: The parties must balance the tenant's requirement to make alterations with the landlord protecting its interest in the commercial property
Use: The use must be specifically defined to allow the tenant to trade.
Rights granted: The lease may contain rights to use common parts (such as car parks passageways). Emergency escape rights should be incorporated into the lease.