Emmersons commercial property solicitors in Newcastle and Sunderland regularly deal with Lease Reviews, Rent Reviews, and Leases for Business Premises, known as Commercial Property Leases. Listed below are some of the issues our commercial lease solicitors advise upon. Consider the importance of them and how not having the right advice could prejudice your interests;
Break Clauses
These enable the tenant to end the lease early at pre-agreed times. The tenant may wish to maximise the number of break clauses so as to ensure more flexibility and the ability to end the lease if the tenant’s business circumstances should change. The landlord may wish to limit the break clauses so as to ensure the property remains let.
The Commercial Property Market
If there are lots of commercial premises available to lease, the tenant may be able to obtain a lease on more favourable terms. Conversely, if there are few commercial premises available, the landlord will be in a better position to dictate terms.
Legal Fees
Each party may pay their own fees, or it may be agreed that one party is responsible for all of the fees. The state of the commercial property market together with the popularity of the premises may influence this issue.
Length of the Lease
This may be influenced by the location and desirability of the premises, but it is a matter for negotiation between the landlord and the tenant. Tenants will need to take into account their business needs and financial circumstances.
Rent
It is crucial that the amount of rent payable is agreed at the outset. Some landlords may charge VAT on rent. Stamp Duty may also be payable, depending on the length of the lease and the amount of rent.
Rent Deposit
Landlords may demand 3 to 6 months’ rent deposit. A larger rent deposit is more likely to be needed if a tenant does not have strong finances or references.
Rent Reviews
The landlord’s ability to increase the rent at future times will impact greatly upon the tenant. The tenant may wish to limit the landlord’s right to review rents, but having no rent reviews is unlikely except in short leases or when particular premises are not generally sought after. At Emmersons Solicitors we regularly assist our clients to negotiate Rent Reviews.
Repairs and Service Charges
Landlords may require tenants to be responsible for all repairs, maintenance and insurance costs. If there is more than one tenant in a building, each tenant usually pays a proportion of the costs through a service charge.
Security of Tenure
If landlords do not exclude certain legal provisions, then they can only require tenants to vacate the premises at the end of the lease by obtaining a Court Order on one of a limited number of grounds.
Selling and Subletting
Unless the lease is very short, a tenant will want to be able to assign (i.e. sell) the lease. However, the landlord may seek to retain the right to reject any new tenant who is unsuitable. References from the new tenant will be sought and the landlord may stipulate that a guarantee be given by a third party. Subletting may be allowed depending on the level of control the landlord requires, but the landlord may have specific stipulations in relation to the sublessor and the sublease.
For commercial property transactions in Newcastle, please visit our dedicated Newcastle Commercial Conveyancing page. It sets out our Commercial Conveyancing service for buyers and sellers in the Newcastle area, with clear guidance on next steps and how to instruct our team.
For commercial property transactions in Sunderland, please visit our dedicated Sunderland Conveyancing page. It sets out our Commercial Conveyancing service for buyers and sellers in the Sunderland area, with clear guidance on next steps and how to instruct our team.
If you are looking to buy or sell a Commercial Property, or you require help with a Rent Review or Lease Reviews look no further than Emmersons Commercial Lease Solicitors in Newcastle, Sunderland, Bradford and Leeds.
For a 'Lease Review or Rent Review' speak to our Commercial Lease Solicitors.
Commercial Lease Solicitors Newcastle: 0191 284 6989
Commercial Lease Solicitors Sunderland: 0191 567 6667
Or complete our Online Enquiry Form and select conveyancing
or email us: enquiries@emmersons-solicitors.co.uk
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For initial discussions or to obtain costs information, contact either our Newcastle or Sunderland offices:
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