Permitted Use in Commercial Leases

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There are two aspects to consider in relation to permitted use in relation to commercial leases.

The first is the use which is permitted by the terms of the Lease.  Leases often limit the permitted use of the premises to certain activities and the Lease will need to be checked for details about the type of business activities the Landlord will allow in the premises.  Depending on the wording used this may be restricted and it is important to ensure the permitted use clause allows for the growth and development of a business.  This flexibility is important even if a Tenant does not intend to change the use themselves as the additional flexibility will be valuable should the Tenant ever want to assign or sub-let the property.

The second aspect is whatever the permitted use under the Lease, there must be planning permission for that use.  It is important to note that planning permission is required should the Tenant want to change the use.  The Lease may also require the Tenant to obtain the Landlord’s consent as well as planning permission and this is something to bear in mind as failure to do so will lead to breach of the Lease and may give the Landlord grounds to forfeit it.

A Tenant should always check that the intended use of the property is permitted by both the Landlord and under planning law as conflict between the two can result in substantial difficulty and potential financial loss.

The Commercial Property Team at Forbes Solicitors offer a fixed fee lease report which will include information on the permitted use of a property. For further information contact our Property Solicitors on 0800 689 0831 or make an enquiry here.

Laura Bradley

About Laura Bradley

Laura Bradley is a Solicitor in the Commercial Property department at Forbes Solicitors. Within her blogs Laura deals with all aspects of commercial property including leases (from both landlord and tenant perspective), licences, acquisitions and disposals along with recent updates within the property sector.
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