A commercial lease is a contract between a business tenant and their landlord. It sets out the tenants rights to use the property and the Landlords responsibilities for a set period and how much the rent will be over that period.
Commercial Leases can be very complex and can often be in excess of 50+ pages. The commercial lease is normally prepared by the Landlords solicitors. The tenants Solicitor will then consider the same and suggest any amendments to the draft lease which may protect the tenants position. It is important to consider how long you want the lease to last and when you would like there to be a break clause which will allow you to get out of the lease early in the event that your circumstances change.
The lease will also have information about any rent increases, subletting, what parts of the building are contained within the lease etc.
Once the terms are agreed then the Landlords Solicitors will produce the copies for signature by all parties. The lease may then be registered with the Land registry depending on the length of the lease.
It is important to check, before signing a lease, that the Landlord is the legal owner of the property and / or entitled to grant the lease. You should also check that the property has the necessary planning permission to allow you to carry on your business. Your solicitor can carry out these enquiries on your behalf through a Land Registry search and to check that there is nothing affecting the property which could impact on your use of the same.