Commercial Leases
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The commercial environment has changed substantially in the past few years as a result of the COVID-19 pandemic and the shift towards hybrid working, among many other external factors.
Such events have highlighted the importance of securing favourable commercial lease terms when entering into a new arrangement. If you are about to negotiate a new commercial lease or renegotiate the terms of your existing lease, having an experienced and business-savvy commercial law Solicitor by your side will ensure you enter into a fair and commercially advantageous contract. Triangle Legal Services have been supporting small, medium, and large businesses in the Central and Greater London regions to negotiate commercial property lease agreements. No matter how complex your commercial lease needs, our team have the expertise and connections to handle the negotiation process on your behalf.
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When it comes to important commercial matters such as lease agreements, legal expertise combined with a robust understanding of the business environment and local property market are essential. Having represented businesses of all types and scales across all industry sectors, you can be assured that our commercial property solicitors are best placed to ensure your lease agreement is tailored to your needs and offers the flexibility, protection, and security you need. We understand that over time, your business may need to expand, diversify, relocate, restructure, diversify, downsize, or outsource. With our commercial lease expertise, you can be confident that your agreement will be negotiated to allow your business to evolve.
For commercial tenants, where necessary, your commercial property law Solicitor will make sure that your lease agreement contains favourable costs, break clauses, the option to sub-let, a rent-free period, and clarity regarding security of tenure. As a commercial landlord, we will make sure that your lease contains terms and clauses that matter to you relating to disrepair, termination, force majeure, and other key considerations.
Commercial lease negotiation FAQs
In most cases, commercial leases are prepared by the landlord’s conveyancer and, as a result, tend to reflect their business needs. This is why it is important as a commercial property tenant to negotiate the best possible terms. There are a wide range of factors to consider when negotiating a commercial property lease, potentially including agreeing:
- A rent-free period
- A grace period if payments under the lease are late (interest rates normally apply in such circumstances)
- Fair repairing obligations, e.g. Restricting your obligation to repair only, excluding damage by insured and uninsured risks, linking your liability to the state of repair at the start of the lease, and the exclusion of liability for inherent defects
- The right to change the use of the premises with the landlord’s consent
- Favourable provisions for decoration, alterations, and signage
- Suitable rent review dates and other rent review provisions
This is only a sample of the factors that our commercial property law solicitors will consider when negotiating your lease agreement.
Under the Landlord and Tenant Act 1954, security of tenure gives an existing commercial property tenant the statutory right to automatically renew their lease using terms comparable to their existing agreement. As such, security of tenure prevents a landlord from imposing contractual lease terms that make any new agreement commercially unfeasible and effectively gives the tenant no real alternative but to seek an alternative commercial property arrangement.
In some cases, a commercial property landlord may ask their tenant to contract out of their right to security of tenure. By doing so, when the lease agreement comes to an end on the contract end date and if the tenant decides to renew their lease, they are not entitled to comparable terms. Because security of tenure is a statutory right, it is only possible to contract out if:
- The landlord serves a ‘warning notice’ on the tenant. This must contain certain wording explaining in clear terms that the tenant is waiving their rights to security of tenure.
- The tenant has signed a statutory declaration (this should be done in the presence of a commercial property law solicitor) confirming that they have received a warning notice from their landlord and that they understand the legal ramifications of contracting out of security of tenure.
If you are being asked to contract out of security of tenure, it is highly advisable to review this with your commercial property Solicitor, who can explain what this means and whether this is suitable for your future commercial needs.
By instructing us to manage your commercial lease negotiation, you can be confident that the matter will proceed smoothly and cost-effectively. Our commercial property law solicitors are dedicated to providing exceptional customer service and will respond to calls and emails as quickly as possible.
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