Commercial lease transactions and lease renewals for tenants

Whatever your requirement, you can rest assured that our professional and efficient solicitors will provide prompt, comprehensive advice and the very best service.

Why (or when) someone would need this service?

A commercial tenant would require this service when they have negotiated terms for a new lease or when they wish to renew their lease.

We are also frequently instructed by commercial landlords to act on their behalf on such matters. For further information read about our service for landlords.

How does the process work/what are the steps?

For new leases the tenant would ordinarily have agreed terms through a commercial letting agent or else directly with the landlord. In the case of lease renewals the tenant may be proceeding by way of agreement with the landlord. Alternatively there may be a need to serve a notice under the Landlord & Tenant Act 1954 which provides security of tenure to tenants of many commercial premises. In such cases the lease will not automatically end when the term expires.

How long does it take?

We would hope to deal with new leases in about six weeks. If terms are not agreed on a lease renewal then it could take considerably longer to have the matter resolved by the Court or by an Arbitrator appointed on Court terms under the PACT Scheme (Professional Arbitration in Court Terms).

Is it expensive? How do the costs work?

Once terms are agreed we charge on a sliding scale, wherever possible on a fixed fee basis based on the rent payable. Our fees for negotiations and Court proceedings are usually on the basis of an hourly charging rate.

What are the things people should consider before calling?

Tenants should be clear about the extent of the property, the rent that they pay and the details of any service charge and additional payments (such as insurance) which are required. They should also consider carefully whether the lease has security of tenure rights under the Landlord & Tenant Act 1954 and also to whether they may wish to negotiate to be allowed to break the lease before the end of the full lease term.

Why are Grant Saw the best people for the job?

We have successfully acted for tenants of many commercial premises and have a team of dedicated lawyers able to assist you.

Commercial lease transactions and lease renewals for tenants tips

The tenant should make sure that they understand all of the issues agreed in the heads of terms and seek legal advice before heads of terms are agreed where necessary. A failure to understand the consequences of the lease being excluded from the security of tenure provisions of the Landlord & Tenant Act 1954 or of the tenant’s inability to sub-let may lead to wasted legal costs if the matter progresses significantly before questions are raised about these issues. Understanding the nature of the repairing obligations imposed on the Tenant is also critical.

Commercial lease transactions and lease renewals for tenants myth busting

What myths are there are around this area?

(a) That tenants can bring the lease to an end before the lease term (unless there is break clause in the lease) and

(b) that they do not have to put the property into a better condition than it was when the lease was entered into (unless the lease states this expressly).

Both of these are incorrect.

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