Commercial Property Landlord and Tenant Solicitors – Legal Advice for Commercial Lease Agreements.

Ensuring the landlord or tenant has the right to end the lease early, while also protecting both parties against the financial impact and business disruption of doing so. Careful consideration needs to be given to the conditions applicable to a break and the means of serving notice.

Drawing up new commercial property leasehold agreements or renegotiating existing terms which no longer suit the interests of the landlord, tenant or both parties.

Protecting landlords in the event a tenant sells their business and wants to assign the lease to another party, and defining what happens if that consent is not granted.

Defining who owns the fixtures in commercially leased properties, who takes ownership of them when the property is vacated, and any remedial work the tenant must carry out if the removal of fixtures leaves visible damage.

Key terms agreed in advance of the full lease. This gives both parties an idea of their rights and responsibilities, which can then be addressed in more detail in the full leasehold agreement.

If the tenant is unable or unwilling to keep up with agreed rent payments, it’s beneficial if both parties know what the recovery process will be, including how much can be recovered, any penalties, fees and interest charged on the arrears, and alternative remedies such as the removal of assets.

Defining the terms of future rent reviews is essential so both parties know when and how the amount payable can vary – usually, although not always, increasing over time in line with inflation (such as linking to the retail prices index) , market values ( including independent expert assessment ) and other such factors ( such as turnover ) .

The right of the tenant to continue to occupy the premises after the current lease expires. This is beneficial to tenants who want to retain their business address and avoid disruption but can also help landlords to retain tenants for longer without the need to fully renegotiate the lease. Excluding security does however give the landlord greater future flexibility.

Where the Net Present Value of a commercial lease is higher than the threshold for Stamp Duty Land Tax (SDLT), the tenant is usually responsible for calculating and paying SDLT within 14 days of the lease taking effect.

SDLT may also be payable on lease extensions, changes of terms and rent reviews, so it’s crucial for commercial tenants to seek advice on this topic before signing a new lease, lease renewal or significant change of terms.

A court order may be required if you wish to evict squatters from a commercial property you own. Lanyon Bowdler can advise on the specific laws which apply to your premises, including squatters who were previously paying leaseholder tenants.

Termination of commercial leases is a common source of disputes, especially where the landlord or tenant on the receiving end feels the contract was terminated unfairly. We can help you to understand your rights and any reasonable legal action you can take.

If a tenant breaches their obligations under the terms of the lease – including failure to pay rent on time – it may seem logical to pursue them for payment. However, in legal terms this recognises that the lease continues and can represent a waiver of the landlord’s right to forfeit the lease.

Instead of chasing the tenant to remedy the breach, landlords may prefer to have no contact with the tenant until the relevant forfeiture date is reached, at which point the legal position might be that the lease no longer applies, and the landlord can retake possession of the premises.

Deciding when to act and when to invoke forfeiture clauses is a complex area of commercial property leases, and we would encourage any affected landlords and tenants alike to seek legal advice immediately if such a situation arises.