The commercial property solicitors at Wellers Law Group bring a pragmatic approach to all landlord and tenant issues. We understand that a commercial lease is an opportunity for both parties and work to make the most of this fact when handling all business lease matters.
What is a business lease?
A tenancy or lease exists where someone lets premises to another for a term in return for a rent. The term of the letting is usually a number of years.
The expression ‘business lease’ is commonly used to refer to a tenancy of premises used for the purposes of running some kind of business. The premises may be a building, part of a building or even open land, used for example as a temporary car park. The terms “business” as used in this context, does not however include agriculture or farming, where a different set of rules and customs applies.
Our areas of expertise
Wellers’ commercial property solicitors can assist with business lease-related matters such as the following:
- Forfeiture– A means whereby the landlord may end a lease and regain possession of a premises without paying compensation to the tenants. The landlord is then at liberty to do as they wish with the premises. However, forfeiture can be a complex area of commercial property law and may not always be in the landlord’s best interests even if there are problems with the tenant. As such, it is essential to take legal advice in any matter relating to forfeiture.
- Guarantors – Becoming a guarantor on a commercial property lease is a serious responsibility as payment for the full duration of the contractual agreement will be required in the event the tenant is unable to make payment independently. Whether you are a company director, business associate, family member or other party, if you have been asked to become a guarantor, our commercial property solicitors can help you clarify your legal position.
- Insurance – A commercial lease should lay out the details of the landlord’s and tenant’s respective insurance obligations.
- Landlord’s and Tenant’s Continuing Liability – When drawing up a commercial lease it is important for both landlord and tenant to investigate and clarify their ongoing liabilities under the lease and how these may still continue following the completion of assignment.
- Licence to assign – The majority of commercial leases contain a clause regarding assignment, conditional on a Landlord’s consent, which may then not be unreasonably withheld.
- Rent reviews – A rent review allows for the rental charge to be changed during the period of a lease. Such changes may be made because of market conditions or as a result of intervals stipulated in the commercial lease.
- Repairing liability – Stand-alone buildings with no shared facilities are usually let on a full repair and insuring (FRI) basis whereby the tenant bears all costs in relation to repair of external, internal and structural format of the property. Internal repairing insurance (IRI) leases typically apply for tenants in premises with multiple commercial users.
- Security of Tenure – Not all commercial leases have a right for a tenant to automatically renew their lease and so it is important to be aware of this and to negotiate a lease with security of tenure.
This list is not exhaustive, so whatever you commercial property lease issue, talk to us at Wellers and we will be able to inform you of your best options and course of action.
Commercial lease solicitors
Business leases account for a large proportion of our commercial property work. We have the expertise and authority to assist with the full spectrum of matters relating to leases. We can advance your interests while also giving you the clarity and confidence you desire.
Our team of commercial property solicitors in London and the South work with a broad range of clients including property developers, leaseholders and institutional and individual investors – we can also work for international clients with commercial property interests in the UK.