Leasing Commercial Property Solicitors

A commercial lease sets out the full terms of the relationship between landlord and tenant. Key provisions include the length of the term, the initial rent and any rent review mechanism, a description of the premises and any permitted use, repair and maintenance obligations on both sides, and provisions dealing with assignment and subletting. It will also address what happens at the end of the term and whether the tenant benefits from security of tenure under the Landlord and Tenant Act 1954. We advise on all of these elements.

Heads of terms are a summary of the key commercial points agreed between landlord and tenant before the formal lease is drafted. They typically cover the rent, the term, any break clauses, rent-free periods and the agreed use of the premises. Although heads of terms are not usually legally binding, getting them right at the outset saves time and cost later. We advise on heads of terms and use them as the basis for the formal lease, making sure the final document reflects what has been agreed.

Commercial leases in England and Wales may be protected by the Landlord and Tenant Act 1954, which gives business tenants a statutory right to renew their lease at the end of the term. However, this protection can be excluded by agreement if both parties follow the correct procedure at the outset. We advise tenants on whether their lease is protected, what the renewal process involves and how to negotiate renewal terms. We also advise landlords who wish to oppose a renewal or wish to agree new terms.

An agreement for lease is a contract between landlord and tenant to enter into a formal lease at a future date, typically once certain conditions have been satisfied. These conditions might include completion of building works, grant of planning permission, or some other agreed event. An agreement for lease binds both parties to proceed once the conditions are met, giving the tenant security before the premises are ready to occupy. We draft and negotiate agreements for lease for both landlords and tenants.

Several provisions in a commercial lease can have significant long-term consequences for tenants. Repairing obligations can be wide-ranging and costly, particularly in older buildings. Rent review clauses determine how the rent changes over the term. Break clauses give tenants an option to exit early, but the conditions attached to exercising them can be strict. Restrictions on assignment and subletting can limit your flexibility if your needs change. We review all of these on behalf of tenants and advise clearly on their practical implications before you sign.