15/06/2015

Why you need to know about leases when renting a commercial property

POSTED IN General

When renting a commercial property for business use, there are many things to consider.

A lease is a legal agreement which is made between the Landlord of the property, and the Tenant who wishes to use it for business purposes. Leases cover a variety of details, including a tenant’s responsibilities whilst using the premises and the Landlord’s obligations.
A commercial property Lease will detail start and end dates and how many years a tenant will have a right to use the property; the permitted use of the property; details of the space being; any fixtures and fittings included at the property; whether any alterations may be made at the property; what permissions need to be sought; rent review provisions information; payment of service charges and other costs associated with the building; and who is responsible for repairs to the property.
All leases are different and the terms should be assessed carefully, to ensure that a specific lease meets the requirements of both the Landlord and the Tenant.
Lease Assignment
 
If you no longer wish to continue with your lease, and there is provision in your lease for an assignment, then you are able to assign your rights as tenant to another party.The Landlord’s consent is required and they would need to approve the proposed tenant. The outgoing Tenant would normally pay the Landlord’s costs.
Surrender of Lease
 
A Lease can be surrendered before the termination date if both the Landlord and Tenant are in agreement to this – either of them can request a surrender but the other party does not have to agree to this. A Surrender brings the Lease to an end.
A Tenancy at Will
 
A tenancy at will means the tenant’s occupation of a property can be ended by either the landlord or the tenant at any time. This would usually only happen when the lease terms are being agreed, and the tenant needs access to the building before completion.
All these things must be considered carefully before entering into a commercial tenancy, and it is important that you use a commercial property solicitor to advise you on the terms of a commercial property lease. They will advise on the Lease, including provisions of the Landlord & Tenant Act. They will report to you on the terms of the Lease, negotiate on your behalf if needed with the Landlord, and ensure that all the above issues have been dealt with in the terms of the Lease, so that you know exactly what you are getting.
Article by Barrington Solicitors http://barringtonlaw.co.uk