What To Expect In Your Commercial Lease

Whether you are taking on a commercial premises for the first time or moving to a bigger one – it is a huge step for your business. There is a raft of financial commitments, health and safety regulations, legal requirements and more. This is why you need to work with a trusted commercial property lawyer. They will ensure that you are meeting legal regulations while your best interests are always considered.

It is essential that the commercial lease is scrutinised. As a tenant, the commercial lease will tell you how your business can and can’t operate. Our commercial property solicitors in Peterborough will scrutinise the lease. This will ensure that you are not hit by unexpected costs in the future that you had not accounted for.

So, what can you expect in your commercial lease?

At the very start of renting a commercial property you will agree a principle terms of the your lease. This will be agreed with the landlord. It is also known as the ‘Heads of Terms’.

The Heads of Terms, or commercial lease will include the type of property that is being let and the address of the property. It will also include the length of the term of the lease. You will see the amount of rent that is payable, when it is due and how often.

You can expect to see the type of business or permitted use of the commercial property within the lease. It will also lay out what improvements or works can be carried out by you on the property, if any. Additional security deposits, if any, will also be laid out in the commercial property lease.

The commercial lease confirms if you have a statutory right of lease renewal at expiry of the term. It will confirm if you, as the tenant, can transfer or sublet the whole or any part of the property. There will be insurance provisions within the commercial property and the lease will confirm who will be responsible for paying these.

There will be a clear outline of any service charges that are to be paid by the tenant towards the cost of shared facilities by the landlord. You will also see confirmation of agreed break dates when either the tenant or the landlord can bring the lease to an early end.

It is highly recommended that you get a commercial property solicitor to look over the proposed heads of terms before you agree to them. This way you can ensure that your business and your best interests are protected.