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01432 278179

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Commercial Lease

Signing a commercial lease can feel daunting because of the high financial risk it entails. Our solicitors who specialise in commercial property will work to solve any issues surrounding disputes and provide you with quality advice to ensure that signing that lease is a business risk worth taking.

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Don’t just sign, get solicitors advice and assistance first

A commercial lease is a legally binding contract which is made between a landlord  ‘the lessor’ (owner of the house, building, apartment or land) and a tenant ‘the lessee’ (a person who occupies land or property rented from a landlord.

The tenant pays money (rent) to the landlord and therefore has a right to use the property for business or commercial activity for a certain period of time. The lease outlines the rights and responsibilities of the landlord and tenant during the lease term.

We can help landlords and tenants. Whether you need help with drafting, negotiating, reviewing, break clauses, surrendering, renewing, assigning or subletting, our solicitors are here to help you.

Whether it’s an office building, an industrial unit, retail or restaurant property, apartment blocks of housing complexes or land our specialists are here to ensure the lease is tailored to your needs and not generic.

Signing a commercial lease is a huge commitment and a financial risk. Be sure of your decision and be knowledgeable about what you’re signing for.

Support and guidance with every stage

What are important things to consider when creating a 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.  

What does a commercial lease commonly deal with?

  • 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.

Why is having a commercial lease in writing important?

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. 

Is there a way for me to get out of the lease early?

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. 

What if I am in a dispute with my landlord over our commercial 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.

Related services

Buying and Selling

Buying and Selling

Landlord and tenant

Landlord and tenant

Portfolio and asset management

Portfolio and asset management

Commercial Development

Commercial Development

Commercial Property Mediation

Commercial Property Mediation

Planning and environmental policy law

Planning and environmental policy law

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