A lease is a principal document designating the predetermined relationship between the owner of a property (the landlord) and the occupier (the tenant). The content of a lease will depend on the property type, its physical condition and the relative bargaining power between the landlord and the tenant. Commercial properties are no exception.
If you are interested in a commercial property, but do not know where to start, your Saracens Solicitors London commercial lease solicitor will have you covered. Commercial lease provisions are different from other property lease provisions and having as much information as possible before you commit will save you from any potential problems.
What are the most important areas covered in a commercial property lease?
Commercial property leases are usually drafted by the landlord and potential tenants can negotiate them. The most important aspects of a commercial property lease are the duration of the lease, the rent and other payments that need to be made by the tenant as well as charges for service, repair and decorations.
The lease also designates the use and dealing of the tenant’s interest in the property. Your London commercial lease solicitor will help you negotiate the most favourable terms, including duration terms.
Is it better to take on an existing lease or opt for a new one?
In general, existing leases are less flexible and their terms are not open to negotiation. Your London commercial lease solicitor will review the terms very carefully since it is possible that the value of the property can be negatively affected by obstructive terms.
Is it a good idea to include a break clause?
A break clause in a commercial property allows the tenant or the landlord (or both) to end the lease prematurely by giving notice. Break clauses are not unusual in commercial leases, since the prosperity of a business cannot always be guaranteed. However, a break clause can affect the investment value of a property, therefore landlords are always reluctant to include one when designing a commercial lease.
To understand more about commercial property leases, give us a call and we will cover your lease needs.