What should I look for when leasing a commercial property?

To be effective, a lease needs to protect both the landlord and the tenant, and both parties must be clear about their long-term obligations.

Our commercial property lawyers can thoroughly check that a lease serves your business needs and provide you with the right advice by clearly explaining your obligations to you.

1. Title

   The solicitor will check whether there are any restrictions or covenants in place that affect the property. They will also make sure the landlord has the right to grant the lease.

2. Rent

   Rent is a key aspect of negotiations between landlord and tenant. The solicitor will check how much rent is payable, when rent is payable, and how often rent will be reviewed. They will also check whether there are any other financial obligations such as services charges or contributions towards buildings insurance.

3. Permitted use

   The solicitor will need to make sure the tenant can use the property as they require for their business. For instance, are they allowed to conduct their type of business from the property? Do they have access to certain areas of the property when needed?

4. Repair

   If the tenant leases the whole of a property rather than just part of it, they are usually responsible for repairs and insurance. The lease must be thoroughly examined, so the tenant does not find themselves responsible for disrepair that happened before they occupied the property.

5. Security of tenure

   The solicitor will check whether the tenant has the right to renew their tenure at the end of the lease term. From the landlord’s viewpoint, having a long-term tenant may be beneficial, or they might rather have the flexibility to ask the tenant to leave at the end of the lease. From the tenant’s point of view, an automatic right to renew the lease may provide more security for their business.

6. Lease length

   Lease length and related clauses are essential aspects of negotiations. Break clauses may be inserted into the lease so the tenant can get out of the lease if their business changes. The landlord, however, is likely to require consistent rental income. The tenant may also want to negotiate a right to assign or sublet the lease to another business if needed.

7. Commercial tenancy eviction

   The landlord may want to take back possession of their property if the tenant breaches the lease terms (for example, by not paying the rent or subletting without consent).

Taking back possession is called ‘forfeiture’. The landlord can only forfeit the lease if there is a clause in the lease which allows them to do so, so it is important for a solicitor to check.

What are solicitor’s fees for leasing a commercial property?

The landlord’s solicitors usually prepare the lease, which the tenant’s solicitors then review. Negotiations occur, revisions are exchanged, and a final version of the lease is drafted. Tenants typically meet most or all a landlord’s legal fees. Solicitor’s fees for leasing a commercial property vary because each transaction is different.

Davisons solicitors offer a fixed price for commercial leases with no hidden costs. If you would like an estimate of fees in advance so you can plan ahead, please get in touch with us.

How much are solicitor’s fees for buying a commercial property?

Conveyancing fees for buying commercial real estate include:

• Investigating the title deed.
• Carrying out Commercial Property Standard Enquiries (CPSEs).
• Making enquiries in the light of CPSEs.
• Negotiating with the seller’s solicitor.
• Making sure finance is in place to purchase the property.
• Exchanging contracts and transferring funds to the seller’s solicitor on completion day.
• Registering the property’s new ownership with the Land Registry.
• Paying Stamp Duty Land Tax to the HMRC.

Every commercial conveyancing transaction is unique, and there may be other disbursements involved, such as additional property searches and VAT to be paid. Please get in touch with our commercial conveyancing solicitors for a no-obligation quote.