Commercial leases

A commercial lease can have a major impact on your business or property investment. If you are a landlord, you need terms that protect your property, rental income, and long term plans. If you are a tenant, you need a lease that supports your business and gives you clarity on your rights, obligations, and costs from the outset.

Many issues under a commercial lease are not obvious when terms are first agreed. Points such as repair obligations, service charge, rent review, assignment, lease renewal, and break rights can become significant later. Early advice helps you understand the risks, negotiate suitable terms, and avoid disputes.

We advise both landlords and tenants on a wide range of commercial lease matters. This includes the grant of new leases, reviewing heads of terms, negotiating lease clauses, dealing with lease renewals and terminations, advising on licences to assign, and resolving issues over rent review and break clauses.

Lease renewals can be important for landlords and tenants alike. In some cases, a tenant may have statutory rights to remain in occupation and seek a new lease. In others, the lease may come to an end without any right of renewal. It is important to check the position early, understand the timetable, and take advice on the best way forward.

Termination of a commercial lease can also raise difficulties. The position will depend on the wording of the lease, the conduct of the parties, and the legal framework that applies. A lease may come to an end by expiry, surrender, exercise of a break clause, or other legal process. Care is needed to make sure notices are valid and the correct steps are taken.

If a tenant wants to transfer its interest, a licence to assign may be required. Both landlords and tenants need clear advice in this situation. Landlords need to consider the strength of the proposed assignee and the terms of consent. Tenants need to make sure the correct procedure is followed and that any conditions are properly understood.

Rent review provisions can affect the value of a lease over time. It is important to understand how rent will be reviewed, when the review takes place, and how any disputes are dealt with. Poorly drafted clauses can lead to uncertainty and cost.

Break clauses also need careful attention. They can offer useful flexibility, but they often depend on strict compliance with notice requirements and other lease conditions. A mistake can mean the break is ineffective, which can have serious consequences.

We provide practical advice on all aspects of commercial lease work. Our aim is to help you understand your position and protect your interests.