Taking on new commercial premises
The commercial property needs of your business will change through its lifecycle. Our team of commercial property solicitors combine technical knowledge and practical advice to help you navigate your property agreements. That way, your business will have a secure home to support its growth.
Whether you are looking for your first premises or you have found a potential new space for your business, negotiating a commercial lease can be complicated. If done correctly, there are many benefits for a business. But it is important to understand the details, commitments and potential risks of your commercial property agreements before proceeding.
Our services for commercial premises
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Buying and selling premises:
We handle the legal necessities of buying and selling premises on your behalf to ensure a swift, smooth transaction.
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Lease negotiation:
Effective negotiation could help you get lower monthly rent, a break clause, a rent-free period or renovation of a premises before occupation.
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Rent reviews:
Prepare for the adjustment of commercial rents.
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Assignments:
Allow a transfer of an existing lease by the current tenant to a new tenant with the consent of the landlord
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Subletting:
Draft a contract to rent commercial property from a tenant rather than direct from a landlord or owner.
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Acting on break clauses within property contracts:
End your tenancy agreement during the fixed term to free yourself from the obligations of a premises that’s not working out.
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Lease renewals:
Get expert advice on setting up a new lease agreement to protect your interest.
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Surrenders:
Transfer the tenant’s interest back to the landlord after a mutual agreement to terminate the lease.
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Tenant lease portfolio management:
We can help you maximise your property portfolio, however, you use your premises.
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Rights of way and easements:
Having an easement on your property means that a third party has permission to use your land for a particular purpose. The most common easements are right of way or a right to light.
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Conditional contract options:
This is when an agreement or contract is conditional upon a specific event, but the date at which it will happen is uncertain. A common example is a contract conditional upon the buyer getting planning permission.
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Property finance and secured lending:
Secure the funds necessary to take on a new commercial premises under rates and terms that meet your needs and means.
Next step: Get in touch to discuss your commercial premises
If you need legal advice for your first step on to the commercial property ladder, or if you’re an experienced property owner looking to expand your portfolio, contact our friendly team of specialist commercial property lawyers on 0800 533 5349 or at enquiries@mogersdrewett.com.
Meet the team
Frequently asked questions
Simple legal documents are much more likely to create ambiguity and opportunities for exploitation. So, to protect both parties, commercial property leases are extremely complex.
Failing to meet the requirements of your lease can lead to very costly legal action. Therefore, it is in your best interest to take legal advice before agreeing to your lease.
By working with the experienced commercial property solicitors at Mogers Drewett, it’s easier to fully understand your complex lease and avoid legal action moving forward. This ensures your business has a secure space in which to grow and thrive.
This depends on how quickly the landlord responds. But most commercial property leases can be agreed within six weeks.
Yes. It’s usually in your best interest to negotiate on commercial property where possible.
You may be able to agree lower monthly rent, a break clause, a rent-free period, or alterations or renovation of the building before occupation.
Note that if there are a lot of other businesses waiting to rent quality space, you will have a harder time negotiating terms.
The premises you intend to occupy may not be perfectly equipped for your business right from the start. So renovating your business premises may be necessary.
It is possible to negotiate renovations as part of your commercial lease. However, it is unlikely your landlord will want to invest in renovations on your behalf.
Partnering with knowledgeable and experienced commercial property solicitors gives you the best chance to convince the landlord to include renovating the business premises in your commercial lease.
While there is no Additional Buyer’s Stamp Duty (ABSD) for commercial properties, industrial properties (a type of commercial property) attract the Seller’s Stamp Duty.
This is 15% of the sale price if sold in the first year, 10% for the second year and 5% for the third year.
If you are a basic rate taxpayer, you would pay 10% (18% for residential property) and 20% for higher rate taxpayers (28% for residential property) when selling the property.
Simply put, it is a transfer of an existing lease by the current tenant to a new tenant with the consent of the landlord.
If you are a commercial property tenant, your contract likely contains a clause that allows you to assign your lease to a new tenant.
In most cases, you will require the landlord’s permission to sublet all or part of your business space to another party.
A commercial sublease is a contract used to rent commercial property from a tenant rather than from a landlord or owner.
A break clause is a tenancy agreement clause that allows either the tenant or landlord to end the tenancy agreement during the fixed term.
For example, a 12-month tenancy agreement with a six-month break clause would allow either party to end the tenancy in accordance with that clause.
Rent reviews typically occur every three to five years to allow the adjustment of commercial rents to the current market level at the date of review.
Although a lease renewal and commercial lease extension have the same effect, it is important to be aware that there is a difference between the two.
A lease renewal is a new lease agreement. A business lease extension is a continuation of the original lease, without interruption.
Yes, you can.
Commercial lease renewal negotiation can be a great way to:
- Reduce your rent or service charge
- Add a break clause to your agreement
- Secure the property for a greater length of time
If there have been no problems or disagreements during your tenancy, you will be in a stronger position to negotiate more favourable terms.
