If you are looking to negotiate a commercial property lease for your business, there are a few things you need to consider.
You’ll obviously be focused on the needs of your business; the location of the premises and how suitable the space will be for you, your staff and your customers but you also need to consider the contents of your lease as these can make or break your business.
Your potential landlord will send across the terms of the lease and it’s up to you to get proper legal advice about all of the clauses so that you know what they mean for you and for your business.
Some of the key elements of your lease will be:
- Annual rent – make sure you know the market value of the property as this will affect what you’ll pay and you don’t want to agree to pay over the odds.
- Length of your lease – you’ll need to decide if you want a long term lease or a short term lease. There are benefits and drawbacks to both so think carefully before agreeing your lease term.
- Break Clauses – if your lease doesn’t have one, you should consider negotiating one. A break clause allows you to sign up to a longer lease, but have the flexibility to end the lease early (when the break clause is agreed) with no penalties.
- Security of tenure – this is an important clause for tenants as it gives you the right to stay in the property once your original lease expires, on similar terms and the landlord has limited options for refusing a renewal of the lease. Landlords will usually exclude this clause from a lease and you’ll probably want to include it.
- Service charges – you’ll probably have to pay some service charges for the property. These will include items such as buildings insurance, electricity for shared areas and cleaning in shared areas. Try to agree these costs at the outset so you are clear of your outgoings.
- Stamp Duty Land Tax – you may not know, but depending on the amount of annual rent payable, the term of the lease and whether you are paying a premium for the lease, you could be liable for Stamp Duty Land Tax.
You can see there many elements to consider when taking on a commercial lease and you should seek professional advice from an experienced commercial property solicitor to make sure that you get the best advice about the type of lease to suit your business but that you also have an experienced negotiator on your side so you can try to get some of the terms you want.
Why Choose Meade King?
Based in the centre of Bristol, just off Queen Square, we have a team of commercial property lawyers to help make your commercial property transaction as problem-free as possible. Our experienced team of solicitors have a great knowledge of the commercial property market here in Bristol, but they also manage transactions for client’s right across UK.
We’ll work hard to find out what matters most to you so we can meet and exceed your expectations. We’ll aim to achieve your deadlines, but we’ll always be honest about how realistic these deadlines are. With expertise in many different areas of commercial property, from shopping centres and dental practices to warehouses, garages and offices, we can help you.
The team works with landlords, tenants and people looking to acquire or dispose of commercial property. We also help manage investment property for clients and we can also help resolve commercial property disputes, either through dispute resolution or litigation.
We know how important costs are to you but we know that’s not the only factor to consider. Making sure the deal is done on time and completed professionally and competently is equally important. Talk to our team today and we’ll give you a quote. If you’re happy, we’ll make an immediate start.
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