Whether starting a new business or growing an existing one, a time comes for most business owners when they will need to secure a business property and negotiate a commercial lease. These are quite a different kettle of fish compared to private rental agreements, with far more at stake, which is why it pays to get a commercial lease solicitor in London to go through a commercial lease with a fine toothcomb.
A commercial lease solicitor in London, such as Saracens Solicitors, will have experience in dealing with commercial leases across a variety of industries and business sizes. However, there are 5 key points that any business owner in any industry should pay close attention to.
1. The lease term
This may seem straightforward but it takes some thought and future planning to ensure that the lease term matches the business’s goals. A term that is too long could see a business stuck in an unsuitable location for its long-term growth. A term that is too short could see a business lose out on a prime location at a critical juncture in its development.
2. Rent reviews
Longer leases, more often than not, come with rent reviews that give the landlord the opportunity to change the rental payments. The kind and frequency of rent reviews should be stipulated in a lease and are subject to negotiation with the help of a commercial lease solicitor in London.
3. Break clause
Circumstances can change for both a tenant and a landlord and this is where a break clause is crucial, giving either party the flexibility to exit a lease with the consequences clearly laid out in black and white.
4. Underletting and assignment
This refers to whether a tenant can create their own tenancy within their rented commercial property (underletting) or transfer its lease to a new tenant (assignment). This is always detailed in a commercial lease and tenants should pay close attention to ensure they do not breach their contract.
This part of a lease can lead to endless litigation if both parties aren’t crystal clear on where the responsibility lies for various repairs. A commercial lease solicitor in London can bring clarity to this often-contested part of a commercial lease.