Skip to content
  • +44 20 3588 3500
Contact Us
Menu
  • Home
  • Expertise
    • Personal Clients
      • Civil Litigation
        • Dispute Resolution
        • Inheritance, Wills & Probate
        • Insolvency
        • Media & Intellectual Property
        • Negligence
        • Property
      • Divorce & Family Law
        • Pre-Nuptial Agreement
        • Legal Separation
        • Annulment
        • Divorce
        • Child Custody
        • Domestic Violence
      • Employment
        • Employment Contract
        • Compromise Agreement
        • Constructive Dismissal
        • Redundancy
        • Discrimination
        • Wrongful Termination
      • Estate Planning, Wills & Probate
        • Asset Protection
        • Power of Attorney
        • Probate & Estate Administration
        • Wills
      • Immigration
        • Entry into the UK
        • Immigration Appeal
        • Remaining/Settling in the UK
      • Personal Injury
        • Holiday Accidents
        • Carbon Monoxide Poisoning Claim
        • Civil Action Against the Police
        • Industrial Disease Claims
        • Product Injury Claims
        • Road Traffic Accidents
        • Workplace Accidents
      • Mortgage/Conveyancing
        • Auction Property
        • Buying Property
        • Selling Property
        • Leasing Property
        • Remortgage
        • Shared Ownership
        • Tenancy Agreements
    • Business Clients
      • Banking & Finance
        • Loan Agreement & Debt Finance
        • Project & Asset Based Finance
        • Restructuring
        • Shari’ah Compliant Finance
      • Commercial Law
        • Business Law
        • Charities
        • Company Law
        • Corporate Recovery & Insolvency
        • Healthcare Sector
      • Commercial Property
        • Sale/Purchase of Commercial Premise
        • Commercial Leases / Business Tenancy
        • Planning / Section 106
      • Commercial Litigation
        • Dispute Resolution & Mediation
        • Debt Recovery
        • Commercial Insolvency
        • Commercial Property
        • Media & Intellectual Property
      • Corporate Crime & Risks
        • Commercial Fraud
        • Money Laundering
        • VAT, Tax & Duty Fraud
      • Employment
        • Employment Contracts
        • Employment Litigation
    • Luxury Assets
      • Aircrafts
      • Fine Arts, Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery and Watches
      • Couture Clothing
      • Yachts
  • About Us
  • Testimonials
  • Our Team
  • Work With Us
    • Recruitment Procedure
    • Trainee Recruitment
    • Vacancies
    • Consultants Programme
  • Insights
    • Personal Clients
      • Civil Litigation
      • Divorce & Family Law
      • Employment
      • Estate Planning, Wills & Probate
      • Immigration
      • Personal Injury
      • Mortgage/Conveyancing
    • Business Clients
      • Banking & Finance
      • Commercial Law
      • Commercial Property
      • Commercial Litigation
      • Corporate Crime & Risks
      • Employment
    • Luxury Assets
      • Aircraft
      • Fine Art
      • Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery & Watches
      • Yachts
  • Home
  • Expertise
    • Personal Clients
      • Civil Litigation
        • Dispute Resolution
        • Inheritance, Wills & Probate
        • Insolvency
        • Media & Intellectual Property
        • Negligence
        • Property
      • Divorce & Family Law
        • Pre-Nuptial Agreement
        • Legal Separation
        • Annulment
        • Divorce
        • Child Custody
        • Domestic Violence
      • Employment
        • Employment Contract
        • Compromise Agreement
        • Constructive Dismissal
        • Redundancy
        • Discrimination
        • Wrongful Termination
      • Estate Planning, Wills & Probate
        • Asset Protection
        • Power of Attorney
        • Probate & Estate Administration
        • Wills
      • Immigration
        • Entry into the UK
        • Immigration Appeal
        • Remaining/Settling in the UK
      • Personal Injury
        • Holiday Accidents
        • Carbon Monoxide Poisoning Claim
        • Civil Action Against the Police
        • Industrial Disease Claims
        • Product Injury Claims
        • Road Traffic Accidents
        • Workplace Accidents
      • Mortgage/Conveyancing
        • Auction Property
        • Buying Property
        • Selling Property
        • Leasing Property
        • Remortgage
        • Shared Ownership
        • Tenancy Agreements
    • Business Clients
      • Banking & Finance
        • Loan Agreement & Debt Finance
        • Project & Asset Based Finance
        • Restructuring
        • Shari’ah Compliant Finance
      • Commercial Law
        • Business Law
        • Charities
        • Company Law
        • Corporate Recovery & Insolvency
        • Healthcare Sector
      • Commercial Property
        • Sale/Purchase of Commercial Premise
        • Commercial Leases / Business Tenancy
        • Planning / Section 106
      • Commercial Litigation
        • Dispute Resolution & Mediation
        • Debt Recovery
        • Commercial Insolvency
        • Commercial Property
        • Media & Intellectual Property
      • Corporate Crime & Risks
        • Commercial Fraud
        • Money Laundering
        • VAT, Tax & Duty Fraud
      • Employment
        • Employment Contracts
        • Employment Litigation
    • Luxury Assets
      • Aircrafts
      • Fine Arts, Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery and Watches
      • Couture Clothing
      • Yachts
  • About Us
  • Testimonials
  • Our Team
  • Work With Us
    • Recruitment Procedure
    • Trainee Recruitment
    • Vacancies
    • Consultants Programme
  • Insights
    • Personal Clients
      • Civil Litigation
      • Divorce & Family Law
      • Employment
      • Estate Planning, Wills & Probate
      • Immigration
      • Personal Injury
      • Mortgage/Conveyancing
    • Business Clients
      • Banking & Finance
      • Commercial Law
      • Commercial Property
      • Commercial Litigation
      • Corporate Crime & Risks
      • Employment
    • Luxury Assets
      • Aircraft
      • Fine Art
      • Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery & Watches
      • Yachts
Menu
  • Home
  • Expertise
    • Personal Clients
      • Civil Litigation
        • Dispute Resolution
        • Inheritance, Wills & Probate
        • Insolvency
        • Media & Intellectual Property
        • Negligence
        • Property
      • Divorce & Family Law
        • Pre-Nuptial Agreement
        • Legal Separation
        • Annulment
        • Divorce
        • Child Custody
        • Domestic Violence
      • Employment
        • Employment Contract
        • Compromise Agreement
        • Constructive Dismissal
        • Redundancy
        • Discrimination
        • Wrongful Termination
      • Estate Planning, Wills & Probate
        • Asset Protection
        • Power of Attorney
        • Probate & Estate Administration
        • Wills
      • Immigration
        • Entry into the UK
        • Immigration Appeal
        • Remaining/Settling in the UK
      • Personal Injury
        • Holiday Accidents
        • Carbon Monoxide Poisoning Claim
        • Civil Action Against the Police
        • Industrial Disease Claims
        • Product Injury Claims
        • Road Traffic Accidents
        • Workplace Accidents
      • Mortgage/Conveyancing
        • Auction Property
        • Buying Property
        • Selling Property
        • Leasing Property
        • Remortgage
        • Shared Ownership
        • Tenancy Agreements
    • Business Clients
      • Banking & Finance
        • Loan Agreement & Debt Finance
        • Project & Asset Based Finance
        • Restructuring
        • Shari’ah Compliant Finance
      • Commercial Law
        • Business Law
        • Charities
        • Company Law
        • Corporate Recovery & Insolvency
        • Healthcare Sector
      • Commercial Property
        • Sale/Purchase of Commercial Premise
        • Commercial Leases / Business Tenancy
        • Planning / Section 106
      • Commercial Litigation
        • Dispute Resolution & Mediation
        • Debt Recovery
        • Commercial Insolvency
        • Commercial Property
        • Media & Intellectual Property
      • Corporate Crime & Risks
        • Commercial Fraud
        • Money Laundering
        • VAT, Tax & Duty Fraud
      • Employment
        • Employment Contracts
        • Employment Litigation
    • Luxury Assets
      • Aircrafts
      • Fine Arts, Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery and Watches
      • Couture Clothing
      • Yachts
  • About Us
  • Testimonials
  • Our Team
  • Work With Us
    • Recruitment Procedure
    • Trainee Recruitment
    • Vacancies
    • Consultants Programme
  • Insights
    • Personal Clients
      • Civil Litigation
      • Divorce & Family Law
      • Employment
      • Estate Planning, Wills & Probate
      • Immigration
      • Personal Injury
      • Mortgage/Conveyancing
    • Business Clients
      • Banking & Finance
      • Commercial Law
      • Commercial Property
      • Commercial Litigation
      • Corporate Crime & Risks
      • Employment
    • Luxury Assets
      • Aircraft
      • Fine Art
      • Antiques & Collectibles
      • Cars
      • Helicopters
      • Racehorses
      • Jewellery & Watches
      • Yachts
+44 20 3588 3500

How does a percentage lease work?

  • Commercial Law
June 29 , 2018
Home > Business Clients Insights >
  • Commercial Law
  • >
  • How does a percentage lease work?
June 29 , 2018
June 29 , 2018

How does a percentage lease work?

  • Commercial Law
June 29 , 2018
  • Commercial Law
June 29 , 2018

A percentage lease is a legal term that describes a lease where a tenant pays rent to the landlord plus a percentage of any revenue for doing business on the rented property. Percentage leases are more financially viable in the long run for both parties, but you should be careful before you enter into one.

At Saracens Solicitors, we have many years of experience in commercial leases and we are here to help you achieve the best deal possible. If you are interested in a percentage lease, but you would like to find out more about how it works, your commercial lease solicitor in London will come to your assistance. You can rest assured that we will do our best to protect your interests and achieve the most rewarding commercial lease for your business.

What is a percentage lease?

A business owner who opts for a percentage lease has two responsibilities – pay minimum rent to the landlord and offer a percentage of the monthly (or annual depending on the type of agreement) gross revenue made on the property. This arrangement can be attractive for both tenants and landlords. A business owner can lower fixed cost through a percentage lease, whereas the landlord has the potential to earn more compared to a standard lease. More importantly, this agreement gives initiative to both parties, since the expansion of business and greater sales will lead to a mutually beneficial situation. However, there are some things business owners should be aware of before opting for this type of lease, and your commercial lease solicitor in London will explain them thoroughly.

Negotiating a percentage

Once the landlord and the tenant start negotiating, it is important to set a ‘breakpoint’ – that is the level of sales where percentage leases start to apply. This breakpoint is calculated in combination with the base rent. For instance, if a landlord agrees to a low percentage lease, then it makes sense for the breakpoint to be low as well. A business owner, on the other hand, will negotiate for a low base rent and a high breakpoint.

Your commercial lease solicitor in London will help you reach a balanced and beneficial agreement with an option to renegotiate the breakpoint.

RECENT POSTS

Banking & Finance

Company Restructuring and Asset Protection – Coronavirus (COVID-19)

Overnight, many businesses have gone from doing financially ok or financially well, to survival mode. And we get it. But when things get tough, trying …

READ MORE
Commercial Property

Commercial Lease Agreement Review – Coronavirus (COVID-19)

COVID-19 has brought disruption to businesses across the globe at an unprecedented level. We are fielding calls and emails from landlords and tenants, scrambling with …

READ MORE
Commercial Litigation

Raising the Roof – Forfeiture of a Commercial Lease | Litigation

Raising the Roof – Forfeiture of a Commercial Lease | Litigation Imagine you are a tenant of a commercial property. Business may be slow and …

READ MORE
Commercial Law

Becoming a drug dealer, the legal way | Healthcare | Commercial Law

Opening a pharmacy is often what most pharmacists seek to achieve; a life ambition. But all too frequently it is a bad case of pre-pharmacy …

READ MORE

CATEGORIES

  • Banking & Finance
  • Commercial Law
  • Commercial Litigation
  • Commercial Property
  • Corporate Crime & Risks
  • Employment

Contact Us

  • This field is for validation purposes and should be left unchanged.

Saracens Solicitors
Strand Bridge House,
140 Strand,
London WC2R 1HH

T: +44(0)20 3588 3500
F: +44(0)20 3588 3505

Legal Notice

Privacy Policy

Accessibility

Saracens Solicitors
Strand Bridge House,
140 Strand,
London WC2R 1HH

T: +44(0)20 3588 3500
F: +44(0)20 3588 3505

Copyright  Saracens Solicitors | All Rights Reserved