Commercial leases are malleable documents that are governed by a complex set of laws. They are adjustable according to the needs of the landlord and tenant. There is an inevitable balancing act that goes on when a commercial lease is drawn up. The landlord wants to maximise their income from a property and the tenant wants to limit their outgoings. Regardless of which side of this equation you find yourself on, Saracens Solicitors, commercial lease solicitor in London, can represent your interests.
One area that often leads to detailed negotiations is the payment of any service charges related to commercial property. If applicable, there will be a clause in the lease dedicated to arrangements around these charges that is separate from other financial obligations, like rent. The potential for conflicting views around service charges is high so it’s best to have things clear from the beginning. When acting as your commercial lease solicitor in London, the property team at Saracens Solicitors can offer lots of experience identifying and clarifying the nuances of service charge liability.
Types of service charge
Depending on the type of property, there may be several different kinds of service charge. These could include costs that cover the care of common areas, external repairs to the building, insurance, any legal expenses and many more. As your commercial lease solicitor in London, Saracens Solicitors will ensure that each obligation is explicitly described. The responsibility of the landlord and tenant in each case will be explained along with amounts, frequency of payment, method of payment and any expected increases over the term of the lease.
It’s hard to predict every cost that will come up during a lease so your document might also include a ‘sweeping up clause’. This is a general commitment for both sides to come to an agreement over ad-hoc service-related costs. These can be negotiated as they come up between both parties with or without the help of solicitors. It is highly recommended that all agreements are formally recorded along with invoices and receipts in case of a dispute. At Saracens Solicitors, we are committed to long-term relationships with our clients so we can help you with any issues, negotiations or renewals.