A commercial lease is the main document that designates a contractual relationship between the owner of a property and the person letting it for commercial use. There are different types of commercial leases and the content of each one depends on the type of the property and the relative bargaining capacities of the landlord and the tenant.
People who are looking for a property to lease for their business, should consider their options carefully, since flexibility is key. A commercial lease solicitor in London, like Saracens Solicitors, can help with the legal paperwork and the negotiations between the landlord and the tenant. For all leases to be valid, they have to be legally bound.
Negotiation on an existing lease is not usually possible, unless the landlord is open to this prospect. However, a commercial lease solicitor in London will review the clauses of the lease carefully and advise clients accordingly. When a new lease is being issued, negotiation is possible if not necessary. Depending on the type of lease, prospective tenants can review the clauses with the help of a commercial lease solicitor in London and decide whether to proceed or not. Prospective tenants who are interested in expanding their business should make provisions for an early exit.
Can the rent of a commercial lease change?
Typically, after five years of occupation, a landlord will review the lease rent under certain provisions. In most cases, commercial leases in the UK follow the rest of the property market and are increased. However, the Code for Leasing Business Premises has encouraged different forms of rent review mechanisms and it is becoming more commonplace for commercial rents to be reviewed within this context instead of mere market competition.
Can a tenant alter the leased property?
Depending on the type of commercial lease, a tenant can alter a property. The alterations can be structural or external with or without the landlord’s consent according to the conditions set in the lease. Landlord’s consent is typically given through a formal deed, which can be negotiated. A commercial lease solicitor in London will help potential tenants with the negotiations.