Practice Areas
Commercial Lease Solicitor

When you enter into a lease agreement on a commercial property it is important that you understand the terms of the lease. Our Commercial Lease Solicitor can assist you in understanding the terms of the lease as well as assisting you in negotiated the best possible terms for you.

Below are some pointers regarding lease terms:

1. Commercial leases may longer lease terms with more responsibilities for tenants.Commercial leases differ because each property’s lease is tailored to suit its specific requirements.
2. The rent payable will depend on the lease and the negotiated terms, extra costs such as VAT and service charges, insurance payments and commercial rates may apply.
3. Most leases will include a rent review clause that states the rent payable be reviewed every specified number of years, usually 3 to 5 years. The rent review will be in line with market values.
4. The fixed term specifies the duration that a tenant has the right to occupy the property, this can be short or long. There may also be a provision about early termination.
5. A ‘break clause’ allows the lease to be ended before the contract date is reached. The break clause will require certain conditions to be adhered to such as written notice to be received by a certain date and the rent to be paid up to date, etc.
6. Stamp Duty Tax will be payable on the lease.
7. The lease may be a full repairing and insuring lease (FRI) a tenant who takes on an FRI lease bears full responsibility for the maintenance and repair of the property internally and externally.
8. Leases usually have a clause that restricts assignments, subletting or transfer of the lease to another party but consent cannot be unreasonably withheld. Subletting occurs when a tenant permits another party to lease the rental property that the tenant has leased from the landlord. Assignment is where a tenant transfers their entire interest in a tenancy to a third party. Both can only take place with the consent of the landlord. If premises are assigned without consent the landlord may not recognise the new tenant, but consent cannot be withheld without good reason.
9. Most leases require a personal guaranty or security deposit. Some leases will require a Company Directors to stand as guarantor for compliance of lease obligations. By signing such a guarantee, a Company Director will be putting their personal assets at risk. If a Director is asked to sign a guarantee it is important that they fully understand their obligations under the Lease. As an alternative to a personal guarantee, a tenant could offer a set rent deposit.
10. A Deed of Renunciation will be required by the Landlord from the Tenant when the lease is being signed. The Deed of Renunciation waives the right of the tenant to seek a long lease at the end of their tenancy. The entitlement to seek a long lease can arise where the tenant can establish a long business equity relief.

The terms of a lease may require negotiation and can often be difficult to agree. To ensure favourable terms it is best to seek advice from an experienced professional. Local Solicitor can negotiate terms on your behalf.

If you need to get involved in a contract Local Solicitor is in your corner to help you through the process.

The information contained in this website is an overview and explanation of the general process. It is not to be taken as legal advice. Please consult Local Solicitor for legal advice. If you need to get involved in a process Local Solicitor is in your corner to help you through the process. You can contact Local Solicitor by telephoning 01 8438138.