If you are trying to grow your business, taking on a commercial lease is a basic step towards this direction. But if you make a wrong decision or do not review the clauses of your lease carefully, you may end up stuck in a situation that is not easily reversible. Luckily, Saracens Solicitors are here to help.
When it comes to commercial leases, the most important thing is to choose the one that suits best your business needs and your plans for expansion. Your commercial lease solicitor in London will help you understand all the different types of leases available in order to make the best decision possible.
A gross lease is a type of commercial lease where the landlord has to pay insurance and maintenance costs and property tax. In determining the overall cost of a gross lease, the landlord will take into consideration property costs and calculate them accordingly in order to create a rent offer.
While gross leases are less complicated than other types of leases, they are not necessarily cheaper and a landlord may overestimate maintenance costs in order to ensure that they won’t lose money in the long run. If you are unsure whether this type of commercial lease is right for your business, you can always turn to your London commercial lease solicitor for further advice and guidance.
Net leases, on the other hand, are the most common commercial leases in the UK. Unlike gross leases, tenants are required to pay a portion or the entirety of maintenance costs (i.e. taxes, utility bills). Net leases are divided into three categories – single net leases, double net leases and triple net leases. In the first category, the payment of the tax is the responsibility of the tenant, but the landlord is still in charge of the rest of the expenses. A double net lease makes the tenant responsible for tax and insurance costs, while maintenance costs are still managed by the landlord. Finally, a triple net lease is an agreement where the tenant is held responsible for all the costs of the property, including maintenance.
To learn more about commercial leases, contact your commercial lease solicitor in London today.