Commercial Lease...Anything to look out for?

Discussion in 'Legal' started by anonuk, Nov 25, 2019.

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  1. anonuk

    anonuk UKBF Regular Free Member

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    We have been negotiating for a new industrial unit and have just received the lease from the landlords solicitors. I am planning on getting a solicitor to look over the lease but is there anything in particular I should keep my eye out for? I don't generally like to leave important things to someone else as I like to take responsibility for decisions we make as a company, so I'd like to know if there's anything to look out for in case the solicitor misses it.
     
    Posted: Nov 25, 2019 By: anonuk Member since: Feb 27, 2014
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  2. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

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    There are numerous threads on this - do a search

    Above all, make sure you use a solicitor who specialises in commercial leases, not just one from your High Street
     
    Posted: Nov 25, 2019 By: Mark T Jones Member since: Nov 4, 2015
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  3. kulture

    kulture UKBF Legend Staff Member

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    There a numerous importatnt things to look out for and a good solicitor should be the one to advise. However it is important not to agree the terms of the deal before understanding what they mean. It also will help you with your solicitor if you understand a bit more about commercial leases.

    In simple terms they are not at all like residential leases. There are no protections whatsoever for the unwary. The lease is the ONLY document that matters, it should detail what you are getting for your money, what obligations the landlord has and what obligations you have. Assume nothing. If it is not in the lease then the landlord does not have to do it. If it says you have to knock the property down every three years and completely rebuild it (unlikely I know) then you have to do it.

    The lease SHOULD say how long you are tied in. It may say whether there are any get out clauses. It SHOULD say when the rent reviews are, it MAY give some kind of appeal or method to limit such increases (but don't bet on it).

    It may oblige the landlord to maintain the exterior or it may require you to maintain all the property. It may require you to return the property at the end of the lease in a certain condition. This might even be in a better condition than its current state. It may have a clause or two saying that the landlord has the right to charge you for any delapidations to the property they they believe they have a right to have rectified when the lease ends. It might not have any mechanism to appeal any such charge.

    This is why it is essential to use a good solicitor.
     
    Posted: Nov 25, 2019 By: kulture Member since: Aug 11, 2007
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  4. Mr D

    Mr D UKBF Legend Free Member

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    Its also worth noting that any promises made verbally by the landlord or their agent that aren't in the lease probably won't be done.
     
    Posted: Nov 25, 2019 By: Mr D Member since: Feb 12, 2017
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  5. anonuk

    anonuk UKBF Regular Free Member

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    Thanks all. As I said, I do have a solicitor that will be going over everything but I like to have an idea of my expectations beforehand :)

    Good point @Mr D - the landlord has offered to do certain works so will make a point of requesting that these are mentioned within the lease.
     
    Posted: Nov 25, 2019 By: anonuk Member since: Feb 27, 2014
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