We have seen a recent trend where both Landlords and Tenants attempt to negotiate and complete new commercial leases especially for retail premises without obtaining professional advice, either from lawyers or from specialist surveyors. Given the complexity of the law relating to commercial leases, this is bound to cause problems in that either the parties will not be fully aware of their rights and obligations under the documentation, or important matters will be overlooked.
This is one of a series of short articles regarding new commercial Leases aimed at the small to medium sized business and with particular relevance to retail shops and office units.
Subject to some legal requirements it is usually up to the Landlord and Tenant to agree the terms. Normally Landlords will have a clear idea of what they are seeking to achieve from the letting and it is normally the case that the Tenant is presented with terms and conditions on a “take it or leave it basis”.
There really is no such thing as a “standard lease”. We come across all types of leases in our business and almost inevitably, an intention to simplify the arrangements can lead to vague wording and a lack of clarity and of course it is only when there is a dispute that that drawback becomes obvious to those involved.
Acting on behalf of Landlords and Tenants as we do, we would be more than happy to have an initial chat and discussion about Lease terms with both Landlords and Tenants, and if you would like any further information on the subject, please do not hesitate to contact the writer, or any other member of our Commercial Property Team.
My next article will be about the length of the lease and whether the tenant has a right to a renewal at the end of the term.