Commercial Lease Solicitors.

A commercial lease is a legally binding contract between a landlord and a business tenant that outlines the tenant has the right to use a property for commercial activity. The commercial lease will state the responsibilities for both the landlord and the tenant during a specific time frame.

A standard commercial property lease will often include the following: 

• Address of the property being let
• Term of the tenancy (renewable or fixed) and certain provisions for renewal
• Provisions of security or damage deposit
• The required amount of rent payable
• Agreements discussed at the point of negotiation

Drafting a lease involves arranging a consultation with one of our solicitors where you make it clear exactly what you want from this lease regarding the duration, pay and requirements of your commercial tenant. Our solicitors will then produce a lease in line with your demands.

Reviewing a lease involves booking a consultation with one of our commercial lease solicitors. Our commercial lease solicitors will thoroughly read through the contract produced by your landlord and make sure the terms and conditions of the lease are clear to you. Additionally, our solicitors will inform you about the fairness of your lease contract.

The time it takes to create and sign a commercial lease will depend on the complexity of the lease and the amount of negotiation needed.

For the most part, the creation of the actual lease application will take between 24 to 72 hours. Following the creation of the application, the time frame depends on whether the business tenants want to negotiate the terms and conditions. In a straightforward agreement the lease can be approved on the same day it was applied.

A landlord can object to a lease renewal that is instigated by the tenant. However, they must explain why and on what grounds. 

There are several grounds that can be used to refuse a commercial lease, the most two common include: 

• The landlord requires premises for the purpose of its own business
• Redevelopment of the premises
• Breach of the covenant to repair
• Non-payment of rent

We always advise on seeking legal advice before terminating a commercial lease to prevent future problems from occurring. To get in contact with our commercial lease solicitors, please call us on 020 3007 5500.

There are several methods a commercial tenant can use to terminate a commercial lease before its designated expiry, such as: 

Break clauses

One option for a tenant to terminate a commercial lease is by including a break clause within the lease. A break clause right is a specific provision that allows a tenant and sometimes landlord to end the lease early.

Surrender

If the lease does not contain a break clause, the tenant can negotiate with the landlord to terminate the lease early. This is referred to as a surrender. The surrender of a lease by a tenant to its landlord is a consensual agreement made between the landlord and tenant. 

Assignment or sublet

If a tenant needs to terminate a commercial lease and give up the possession of the property where there is no break right, and the landlord will not agree to surrender, the tenant may be able to assign the lease to a third party or to sublet the property to limit the outgoings.

Commercial leases are complicated legally binding contracts that outline terms and conditions between a landlord and a business tenant. Agreements within the lease include the rights and responsibilities of both parties, the duration of the lease, and the amount of money owed by the business tenant. Consequently, an unfavourable commercial lease can have significant impacts on a landlord or business.

Our commercial lease solicitors always encourage clients to either get their lease drafted or reviewed by a qualified solicitor to prevent any potentially unfavourable conditions.

Each commercial lease is different, and costs will vary depending on complexity. We offer an untimed initial consultation priced at £200 plus VAT to inform us of the details of your case.

During this consultation, you will receive:

• Unlimited time to discuss the details of the drafting of a commercial lease and ask any questions you may have.
• An overview of your legal standpoint and available options.
• A clear time and fee estimate for your commercial lease.

Our fees for assisting with the transaction will range between £1,500 – £6,000 depending on whether you are the landlord or the prospective tenant and the volume of documentation involved. All pricing excludes VAT and disbursements.

To contact one of our commercial lease solicitors, please call us on 0203 007 5500.