Commercial Leases
Commercial Leases: specialist Solicitors for your protection
Are you considering leasing a commercial property?
Do you need help understanding, drafting or signing a lease?
Whatever your commercial property needs, you are in the right place for help and advice.
Leasing commercial property and land is an unpredictable process
Are you are looking for your first premises or do you need more space for your growing business?
Or perhaps you’ve found new tenants for your own property?
It’s an exciting time when your search for a property or tenant has come to an end, with just the paperwork left to complete. But it’s also a time of high risk.
The lease you sign will hold you accountable for the years ahead, so it’s absolutely vital you understand the implications and protect your interests come what may.
Read on for a thorough understanding of how to protect your interests.
Meet Russel, our solicitor responsible for Commercial leases
Solicitor
Commercial Lease Expertise
Whatever your situation or circumstances we have the experience and expertise to safeguard your interests.
Business Owners & Organisations
From leasing your first premises to landlord disputes and land purchases.
Investors and Developers
Commercial Landlords
See what our clients have to say…
What should a business lease agreement include?
It is important to address the following issues, as a minimum:
1. Rent Payment:
Clearly outline the amount of rent due, when it is to be paid, and any penalties for late payment. Will rent increase with inflation, and if so by how much? This ensures both parties are aware of their financial obligations.
2. Lease Term:
Specify the length of the lease agreement, including any renewal options or break clauses. This provides clarity on how long the tenant can occupy the property.
3. Maintenance Responsibilities:
Define which party is responsible for maintaining and repairing different aspects of the property, such as structural repairs or utilities. This helps prevent disputes over maintenance issues.
4. Use of Premises:
Clearly state what activities are permitted on the premises and any restrictions that may apply, such as noise levels or signage. This helps ensure that the tenant complies with any zoning regulations or building codes.
5. Insurance Requirements:
Outline any insurance policies that must be maintained by either party, such as liability insurance or property insurance. This protects both parties in case of unforeseen events.
6. Assignment and Subletting:
Address whether the tenant is allowed to assign their lease to another party or sublet part of the premises. This clarifies whether the landlord’s consent is required for such actions.
By addressing these key issues in a commercial lease agreement in the UK, both landlords and tenants can protect their interests and maintain a positive working relationship throughout the lease term.
If you’re told not to worry,
“It’s just a standard business lease.” Beware.
When you are keen to grow your business and need the right premises it’s tempting to sign on the dotted line before making sure you are protected.
Yet before considering the lease, a good, specialist Solicitor will take the time to understand your situation and your plans for the future.
Only then can they identify the key commercial points and focus on crafting a lease agreement that suits you perfectly, allowing you to concentrate on running a thriving business from your new location.
Commercial leases can be a minefield, but a good, specialist Solicitor will advise you on the following:
● Rent-Free Periods
It might not occur to you but landlords need good tenants and are often open to negotiating a rent-free period. This can allow you to fit the premises out for your business.
● Break Clauses
Your new commercial lease will be for a fixed term, but you can try to negotiate a break clause to end it early if needed.
● Maintaining the Property
It is a fair expectation to keep the premises in good repair and repair any damage.
However, if the property isn’t in great shape at the start of the lease, or you’re taking a short lease, you could try to limit your obligation to maintain the current condition. We can advise you on what you need as evidence.
● Transferring or Subletting the Lease
You need to ensure you can transfer the lease to another business or sublet, even if that requires the landlord’s consent.
Although the landlord must act reasonably, by law, they can set conditions for refusing consent. So we will do everything possible to limit these conditions.
● Altering the Property
Make sure you have the rights to alter the property to suit your business needs. Leases rarely allow structural changes, but you should ask for the right to make internal, non-structural alterations.
● Indemnity Clause
A lease is a contract, so if you breach it the landlord can and probably will sue you for damages.
To avoid this lengthy and costly process, landlords often require an indemnity, meaning you must cover any losses or expenses they incur due to your breach, without needing to prove them in court. If an indemnity is required, ensure the landlord minimises losses and allows you to correct any issues before you have to pay.
● Service Charge
Tenants often contribute to the cost of services the landlord provides, in addition to rent. These can include maintenance of common areas, heating, lighting, and cleaning. In larger developments, services might also cover public spaces, shared access roads, and parking.
Make sure you consider all of the above and don’t rush into signing the agreement. Negotiating well reduces the possibility of potential problems.
Tierney Solicitors have years of experience helping business owners secure the best possible lease terms.
Click on a button below to arrange a time to talk to Lauren Lancaster our Head of Property Services.
The most common questions we’re asked about Commercial Leases.
What commitments am I making when signing a lease?
Besides paying rent, rates, and utilities, there may be other costs involved in a commercial lease, like insurance and repairs.
It’s important to get legal advice to understand these responsibilities. The specific wording in the lease will impact any costs for repairs at the end of the lease.
Remember you are committing to these for the length of the lease.
What changes can I make to a lease?
That doesn’t of course mean the landlord will agree with your terms.
Do I need to use a Solicitor for my lease agreement?
Legal advice is not mandatory for creating or entering into a commercial lease, but it is highly recommended.
Solicitors can help clarify lease conditions and ensure the obligations of both landlords and tenants are included. This can prevent costly mistakes and make the process smoother.
What happens at the end of my lease?
You may want to stay and have the certainty of a current up to date lease.
Important considerations when leasing your property
Many of the problems landlords experience with tenants can be avoided if they seek the advice of a Solicitor. A bullet-proof lease can help prevent major problems in the years to come.
If you haven’t set out, in detail, who is responsible for the upkeep and maintenance of the property you could find yourself in a lengthy dispute with your tenants.
You also need to think about how to handle difficult tenants. Not all tenants are easy to deal with, so how will you manage late payments or property damage?
Whatever the issue, if you don’t have the right legal help, you can find yourself in hot water. Legal challenges can be lengthy, complex and, worst of all, costly to your bank balance, time and reputation.
The right legal support in drafting and reviewing your lease safeguards you from many of these problems. And if they do arise, you will be best prepared to deal with them.
Lauren and her commercial property team at Tierneys Solicitors regularly help commercial landlords with:
● Selling / Assigning leases
● Renewals / Reviews
● Rent reviews
● Termination and Surrender
● Obligations and Covenants
● Handling difficult tenants
Click on a link below to arrange a time to talk to Lauren Lancaster, our Head of Property Services.
Does a leasehold property form part of the sale of a business?
It is easy to underestimate the complications involved when buying or selling a business that includes a commercial lease.
Commercial leasehold agreements usually require the landlord’s consent for another party to take over the leasehold. This often involves detailed background checks into the buyer’s credit record and character.
The landlord may even insist that the seller remains on the lease as a back-up if the buyer doesn’t pay rent.
If the lease is assigned without the landlord’s consent, the seller may remain liable for the lease.
If a commercial leasehold forms part of your business transaction, you can discuss the best approach with Lauren Lancaster, our Head of Property Services.
Your Commercial Property team at Tierneys Solicitors
Lauren Lancaster
Partner / Head of Litigation & Property
Joined Tierneys in 2011
Cameron Ramage
Property Executive
Joined Tierneys in 2017
Russel Raslan
Solicitor
Joined Tierneys in 2023
Maddie Tierney
Trainee Solicitor
Joined Tierneys in 2024
Courtney Bone
Legal Assistant
Joined Tierneys in 2023
Sarah Keen
Property Admin Assistant
Joined Tierneys in 2024
William Hoyland
Solicitor
Joined Tierneys in 2026
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How we can help
It doesn’t matter how experienced you are in commercial property transactions, it’s important to get the right legal advice.
Lauren and her team have a long and proven track record of helping tenants and landlords with leasehold agreements across Yorkshire and beyond.