Negotiating a lease is a long thought-out process , so we thought we’d offer some tips and helpful advice on completing a lease in 2018.
Having legal advice
Knowing your Heads of terms in and out
Break clause and rent review.
What is a Commercial Lease and why do you need one?
WHAT?
A commercial lease is an agreement between a landlord and a business for the rental of a property. It allows a business to use a property for commercial purposes, and it sets out the rights and obligations of the landlord and tenant.
WHY?
You need a commercial lease if you wish to carry on your business in a specific space. A commercial lease frames the relationship between landlord and tenant and outlines the business purposes for which a property can be used.
Having Legal advice.
One of the most important aspects of undertaking a lease. Recommended heavily by ourselves and other landlords, having legal advice helps you understand the ins and outs of your lease and allows the process of handover between tenant and landlord to be a lot simpler and quicker.
Knowing your Heads of terms in and out.
Heads of terms reflect the deal reached between the landlord and the tenant so that the lease can be prepared. The key terms to note are the property itself, rent, length of term, permitted use and any other fees like service charge, insurance and deposit. It’s important to know every section of your heads of terms, rushing into a lease without proper guidance can cause unwanted problems for the landlord and tenant down the line.
The Important terms.
Rent: The rental agreement is usually granted on marketed evaluation, rent can be paid quarterly in advance or monthly, we always recommend setting up a direct debit, so the process of payment is easy on yourself and ours.
Fee’s: The important fees added onto the rent are service charge and insurance which are costs incurred by the landlord for running and maintaining shared parts of the buildings or estate. And the deposit which protects the landlords in case of bankruptcy or liquidation of a tenant.
Break clauses and rent reviews.
Break Clause
A break clause allows the tenant to end the lease early, in accordance to any conditions that are met under the agreed lease, all conditions of the break clause must be met otherwise the landlord can contest the break clause.
Rent Review
Rent reviews are usually carried out during the term of a lease, depending on the length, they allow the landlord to assess the property’s value and dependent on inflation or market value, increase the rent.
We have plenty of office, industrial and retail space to rent, if interested make sure to check out our properties page.