Commercial Lease

You need to include how long you want the commercial lease to last and you may have to take into account your current finances and your expectations of how well you think your new business will perform. The condition you have to leave the property in and how often you review the rent are other important details that would be outlined in the lease. The landlord may include whether the tenant is able to assign or sub-let the property together with break clauses and rights to exercise surrendering of the lease.  

• the type of property being let,
• the address of the property being let,
• the term of the tenancy and whether the tenancy is for fixed term or renews periodically,
• the amount of rent payable (how often and when rent should be paid),
• permitted use,
• ownership of any leasehold improvements
• provisions of any security/damage deposit
• landlord and tenant obligations
• Provisions for lease renewal
• Landlord improvements and signing incentives
• Tenant improvements
• Whether the tenant can assign or sublet the property
• Notice provisions for termination of the tenancy, break clauses and insurance provisions
• forfeiture and disputes.

Put simply if there was ever a dispute as to the terms of the lease agreement, a legal document would be in place protecting your rights. Parties can include specific clauses to ensure needs are met, such a break clause. 

Your business may be performing badly or you may not be happy with the location of the premises you’re using, if so a ‘break clause’ is a possible way to bring the lease to an end before the term ends.

A break clause allows a tenant (and sometimes the landlord) to end a lease before it ends. There are certain requirements that you must follow to ensure the break is valid, for example, the tenant must serve upon the landlord a break notice. The break clause is an official date in the lease once an agreement is made between the landlord and tenant and the lease can be broken without either party facing a penalty. It is advisable to negotiate break clause terms before entering into a lease. 

Firstly it’s important to find your lease documents and read them carefully to make sure that you completely understand the legal terms and conditions. Secondly, you should ensure that you understand your legal rights and responsibilities and those of your landlord. Additionally, you should consider a variety of options such as negotiation, mediation and court action.

We are here to help with any disputes. once we understand you primary objective, we will advise on feasibility and best strategy to achieve your desired outcome.