Commercial Lease Check List

commercial leaseLandlord & Tenant

Did you know that a commercial lease falls under the Landlord and Tenant Act 1985?  The landlord could also be the freeholder (some landlords are subletting leaseholders), whilst the tenant is the leaseholder.  In relation to commercial lease, the tenant will also be a business owner.  Commercial leases should not be confused with  residential leases

Unsigned Commercial Lease

Suppose you have a commercial lease but you haven’t signed it yet.  How legally bound would you be?  Would you have any obligations and responsibilities?  Should a formal contract renewal be expected, if the lease came to an end? What if the tenant was allowed to occupy the property?  Would the running over of the previous contract suffice?

Before signing a commercial lease, have in place the following check list:

  • Property solicitor to review lease terms
  • Accountant to review finance (inc. budget and forecast)
  • Exit plan
  • Personal liability

If you haven’t ticked these 4 essential tasks before signing a commercial lease, don’t sign it at all.

Statutory Rights and Unsigned Commercial Leases

Clauses in a commercial lease have significant implications for both tenant and landlord.  Commercial leases without formalities are a high risk.  A tenant could have statutory rights even if the lease hasn’t been signed.  The landlord could get a court order to evict the tenant.  Compensation might be sought, including the right to remain in the property, as well as the right to renew the lease.  This could happen with or without the landlord’s willingness to do so.

Commercial Leasing Specialists

Whether you’re a tenant or a landlord, we strongly advise you to contact a property solicitor who will help with the check list above and identify any issues relating to a commercial lease.  You need to spend time reading the lease and then have a solicitor review the lease terms.  A property solicitor will breakdown the clauses and terminology into simplified English, so that you are fully aware of the benefits and implications of any of the clauses set out in the lease.

Read the contract and highlight anything you don’t understand or anything you’re unsure about.  Your property solicitor will help you understand what’s in the contract and will also suggest any amendments.  New clauses may be added to a commercial lease (eg. an agreement that the landlord will not raise the rent after a year of tenancy).  SG

Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

Global Excellance Awards

Client Reviews

DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to

Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

We were very pleased with the way that DG Law helped us on our transaction

Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

DG Law resolved a difficult lease renewal for us and their services were excellent –

I needed understanding and experienced legal advice. DG Law provided an excellent service at a

My experience was second to none – the service was professional and personal. DG Law

DG Law always step up to the plate on our transactions and handle the various

DG Law was recommended to me and my partner and I received excellent advice –

Having worked with DG Law a number/couple of times now, I have been really impressed

DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

DG Law organised and ran a very useful session to help to make our team’s

DG Law came recommended to me and whilst setting up a new business it was

We were recommended three lawyers to handle the sale of our seven year old successful

Why Choose Us?

We live by our core values of transparency, flexibility and being honourable – every day

We put ourselves in your shoes so we understand your problems from the inside out

We deliver our advice in a way that is easy to understand