Commercial Property/Leases
COMMERCIAL PROPERTY SOLICITORS BRISTOL
In general terms, when dealing with freehold commercial properties, there is little difference between commercial and residential property. The real differences lie in commercial property leases.
To the unwary or inexperienced, a commercial lease may appear to be a standard document, and can often be presented as such by a Landlord. Whilst there are many common types of clauses in such leases, this is one area where the “devil is in the detail” and there are many areas where experienced negotiation on the terms of a lease contract can be vital. This is where commercial property solicitors add real value.
Common types of leases where there are subtle but important differences include :-
- Lease for a shop
- Office lease
- Industrial unit leases
- Lease agreements for pubs
- Leases involving sale of food
Important considerations for both landlord & tenant
Whilst considering and negotiating lease terms, the following are some of the most important matters to be addressed :-
- Appropriate length of lease/remaining term of lease if transfer of existing lease
- Can the lease be renewed ?
- The issue of potential personal guarantees at the beginning or on transfer of lease
- Rent review clause
- Break clause and whether this is available to only one party or both
- Repairing covenants
- Service charges
- VAT status i.e will the Landlord charge VAT on the rent ?
- Rent deposit
- Permitted use of the property by the Local Authority
- Dilapidations
- Landlord consent (licence) for alterations or transfer
- What pre-contract enquiries should be raised about the property