Taking on new commercial premises
The commercial property needs of a business change through its lifecycle. Our team of commercial property solicitors combine technical know-how and down-to-earth advice to help you navigate your property agreements and give your business a secure home to support its growth.
Whether you are looking for your first premises, you have found a potential new space for your business, or you are looking to develop or invest in property it is important to understand the details, commitments and potential risks of your commercial property agreements, before proceeding.
Our services include:
- Buying and selling premises
- 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
- Rent reviews – allow for the adjustment of commercial rents
- Assignments – allow a transfer of an existing lease by the current tenant to a new tenant with the consent of the landlord
- Sub-letting – a contract used to rent commercial property from a tenant rather than direct from a landlord or owner
- Acting on break clauses within property contracts – allows either the tenant or landlord to end the tenancy agreement during the fixed term
- Lease renewals – advice on setting up a new lease agreement
- Surrenders – when the tenant’s interest is transferred back to the landlord and both parties accept that it will be ended, the lease is surrendered
- Tenant lease portfolio management – we can help you maximise your property portfolio, however you use your premises
- Rights of way / 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.
- Conditional contracts / options – 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.
- Property finance & secured lending
Next steps: get in touch
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 team of specialist commercial property lawyers on: 0800 533 5349 or enquiries@mogersdrewett.com
Meet the team
Frequently asked questions
Yes. You may be able to agree lower monthly rent, a break clause, a rent-free period, and 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.
While there is no Additional Buyer 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.
Capital Gains Tax is lower for commercial property than residential. 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 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. An extension of the original lease is a continuation of the original lease, without interruption.
