Three Provisions To Look Out For When Tackling A Commercial Lease

On locating the ideal business location the majority of tenants will initially seek to agree the term and rent with the Landlord. It is essential that once the draft lease is provided by the Landlord, that these provisions are considered in more detail. In particular are they in accordance with the Heads of Terms?

The amount of rent may appear to be correct but there may be other rent charges hidden within the body of the lease such as VAT and other outgoings.  From a tenant’s perspective it is important to know exactly what rent is payable, the dates it is due on, the method of payment and whether this is in advance or arrears.

In addition when negotiating the duration of the lease it is important that tenants fully consider their commercial requirements which may change and develop over time. Shorter leases provide more flexibility, however, longer leases offer security over a specific time period. This will depend on the type of business and its long term viability.

Finally, when taking on a lease it is imperative that tenants understand any forfeiture provision. This enables the Landlord to re-enter the premises and determine the lease where the tenant has breached one of its covenants. A lack of comprehension of the lease could lead to its unexpected demise. It is worth noting, however, that forfeiture provisions must be expressly included to have effect.

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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