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Commercial property lease solicitors near you.
The start, extension or continuation of a business may mean that you decide to look for new business premises. If you do make this decision, it is important to know what you are signing up for before embarking on a new Lease.
Any Commercial Property Solicitor will tell you that the Lease of a business premises is the contractual document which gives a Tenant the right to occupy a property and sets out the terms and conditions the occupation is subject to. Commercial Leases can be complex, so make sure you take legal advice from our experienced property solicitors at MG Legal, before signing.
The property solicitors at MG Legal will make sure you are happy with, and understand the terms of your new lease, meaning you are less likely to have costly problems in the future.
What is a commercial property lease?
Commercial leases are a form of legally binding contract made between a business tenant and a landlord. The lease gives you the right to use the property for business or commercial activity for a set period time. The company will pay money to the Landlord, and the lease will outline the rights and responsibilities of both the landlord and tenant during the lease period.
The difference between commercial property lease and a residential lease.
The underlying principle is the same but there are several key differences. For many the key difference is that there is less government protection in place for commercial property tenants and there is also more room for negotiation in a commercial lease. The reason for this is because the general principal that if you are taking on a commercial property lease you should be knowledgeable about running a business and business practices.
What is included within a commercial lease?
Typically, the lease will cover the following:
- The type of property being let
- The address of the property
- The length of the tenancy
- Whether the tenancy is a fixed term or a term that can be renewed periodically
- The amount of rent charged and when the rent will be paid
- Which types of business can be carried out in the property
- Who will be responsible for any leasehold improvements
- The provisions of the Security Deposit
On some occasions the commercial lease may also cover these areas:
- The provisions for the lease renewal
- Any improvements the landlord will be responsible for
- Any improvements the tenant will be responsible for
- Whether subletting will be permitted
- The notice provisions which will be offered for the termination of a tenancy
- Who will be responsible for managing the insurance of the property
What details will the Lease contain about the business premises?
The lease will describe the premises, either using a reference to the Land Registry title number or plans, or indeed both.
Other key terms about the premises which will be referred to within the lease are:
Fixtures – this refers to items with are attached to the premises or property in such a way, that to remove them would damage the property, such items included sinks, toilets or built-in cabinets
Chattels – these are items which are considered distinct from the premises such as white goods, blinds or curtains
Leasehold improvements – these are considered fixed assets which would be an expense incurred when making an improvement to the premises, such as carpeting office space.