Whether you are a tenant looking to acquire or extend a lease on a business premises or a landlord who requires a lease agreement drafted, our lawyers can offer you straightforward, reliable advice and accurate, simple to read drafting.
The Basic Components of a Commercial Lease
Most commercial lease documents will contain the following:
- The names of the landlord and tenant (or lessor and lessee)
- Details of the premises to be leased
- The duration of the lease
- How much rent is to be paid
- Tenants Covenants
- Landlord Covenants
- Rights and reservations
Protecting Your Interests – The Landlord
To protect your property and financial security ensure that the agreement between yourself and the tenant contains adequate provisions for:
- Rent reviews
- Repairs and alterations to the property
- A licence to assign or sublet of the premises if you are happy for the tenant to do this
- A detailed list of what the property can and cannot be used for
- Disputes resolution procedures
Protecting Your Interests – The Tenant
When leasing commercial premises a tenant needs to take extra care to ensure that their interests are protected upfront as the property they are leasing is also providing their livelihood. Things to include in the contract are:
- Full disclosure of what parts of the premises and land are your responsibility when it comes to maintenance and repairs
- Whether the landlord has provided adequate insurance
- The procedure in which rent reviews will be conducted
- Is there a break clause included in the terms
- Renewal terms
- Procedures for management of any disputes
Before signing any agreement make sure you undertake due diligence with regards to the condition of the property. Make sure you engage a surveyor and draw up a Schedule of Condition and both you and the landlord are in complete agreement regarding the original state of the property.
Do I Need Legal Advice?
Commercial leases are far more complex than residential leases and governed by the Landlord & Tenant Act 1954. It is therefore essential that you obtain legal advice, whether you are a landlord or a tenant. At Bennet Oakley Solicitors we have nearly six decades of experience in negotiating, drafting, and renewing commercial leases and resolving any disputes which may arise from them.
If you would like to talk to us about a commercial lease then please phone our office on 01444 235 232 to make an appointment. Alternatively, you can fill out this contact form and we will be in touch with you within 24 hours.