Whether you are a landlord looking to let vacant premises or a tenant looking to relocate your business to new premises our lawyers have the expertise to guide you through the process from start to finish.
We deal with lettings of all kinds of commercial property. Whether you are dealing with a high street retail unit, an office in a multi-let building, a storage & distribution facility on an industrial estate or a whole manufacturing plant we are here to assist you.
If you involve us at an early stage, we can provide guidance and advice on the proposed lease terms as they are being negotiated. Ensuring that your heads of terms are comprehensive, and all commercial points have been considered and agreed upfront will limit the scope for disagreement at a later stage, saving you time and money.
Acting for a landlord
When acting for landlords we will usually prepare the draft lease. We appreciate that no two properties are identical and recognise the importance of ensuring that our drafting is tailored to suit the circumstances. We will work with you to ensure that all covenants relevant to the individual property and its proposed use are included, and that sufficient rights are reserved for the landlord to obtain access the property and do anything else which you may require. Where a property being leased is part of a multi-let building or estate, the terms of the lease should be consistent with other leases in the building or estate to simplify management of the asset and avoid problems such as service charge gaps or shortfalls. This is also important to protect the investment value of your asset.
We can also work with you to prepare a comprehensive lettings pack, which can be provided to the tenant and its advisors using our online portal facility. Taking a lease can be a substantial commitment for a tenant and they will want to carry out due diligence and fully understand the obligations they will be entering. By preparing your lettings pack in advance we can help to anticipate the questions your prospective tenant will have and provide them with everything they need in a well-ordered way, so the transaction proceeds smoothly and quickly. You only get one chance to make a good first impression, so doing this can help to show your potential tenants that you manage your property well and get your landlord-tenant relationship off to the best possible start.
Our lawyers also have a wealth of experience of drafting all the additional documents a landlord may require when letting commercial property. Where the agreed terms require it, we can draft and negotiate on your behalf documents ancillary to the lease itself, which may include:
Agreement for lease – These can be useful in a range of circumstances where the parties want contractual certainty that a lease is going to be entered into at a date in the future. Examples include:
- Where it is agreed that the landlord is to take certain steps before the lease is entered into (e.g. carry out some works to or construct the property) in order to ensure that the tenant is contractually committed to the lease before money is spent. These are sometimes referred to as pre-let agreements.
- Where a tenant needs to get planning or other consents before it can operate from the property and so wants to secure the property before it makes its application(s). We can also provide for completion of the lease to be conditional on the consents being obtained on satisfactory terms, or any other matter that the parties agree.
Rent deposit deed – Where the tenant is to lodge a deposit with the landlord at commencement of the lease term as security for payment of the rent a rent deposit deed will be required to document the arrangements. These deeds deal with matters such as the circumstances in which the landlord is entitled to withhold sums from the deposit and when any remaining deposit is to be repaid to the tenant.
Licence for alterations – These are needed where a tenant intends to carry out fitting-out works to the property and the terms of the lease prohibit the tenant from carrying out such works without the landlord’s consent. The licence will, where required by the landlord, contain the tenant’s obligation to remove their fit-out at the end of the term.
Because we also advise tenant clients, we have an in-depth understanding of tenants’ requirements and concerns which, together with our commercial and practical approach, means that we can cut-through any unnecessary negotiation and reach a satisfactory conclusion without wasting time or costs.
Business tenants benefit from statutory rights. The Landlord and Tenant Act 1954 gives qualifying business tenants the right (subject to some exceptions) to remain in occupation of their premises even after their lease terms come to an end and to request a renewal lease on the same terms as their previous one but at the market rent applicable at the time of the renewal. Our lawyers can advise you on these rights and circumstances where you might want to exclude them or where the right to renew does not apply. They can also assist with the “contracting out” process which enables landlords and tenants to complete leases where the tenant’s statutory rights are excluded.
Acting for a tenant
We act for all kinds of occupier clients, from owner-managed businesses to multi-nationals and in all sectors, including retail, hospitality, manufacturing and professional services. We know that the needs and nature of your business will dictate your priorities as regards the terms on which you occupy any building, and we will take the time to understand those priorities at the outset of the transaction.
We recommend that you consult us before agreeing the heads of terms for your new lease. Early advice can be invaluable and help you to avoid some of the traps that sometimes catch out unwary tenants. For example, many landlords will want to make tenant break rights conditional – something that can severely hamper your ability to exercise your break, should the need arise. Ensuring break conditions are kept to a minimum or avoided altogether from the outset, can put you in the best position possible and avoid protracted disagreements and negotiations later on. Where you are taking premises with shared facilities early discussions about service costs, the availability of service charge caps and what items can’t be recharged under the lease can also reap rewards - providing substantial financial benefits and protections over the life of your lease.
The level of the rent and the length of the proposed lease term will likely influence the amount of due diligence you may want us to carry out on the property and its title before you proceed with the lease. This can range from a full title review with a full suite of searches akin to a property purchase, right down to us simply checking that the landlord owns the property and has the ability to grant the lease. We can advise you on what level of due diligence is appropriate and tailor the work we do for you to balance the need to ensure that anything which could adversely affect your use and enjoyment of your new property is identified against the need to ensure that the level of work and costs is proportionate to the transaction.
Our lawyers are skilled negotiators with extensive market knowledge and experience, we will report to you on the draft lease documents and provide advice on market norms before seeking to negotiate any changes that you may require to ensure that the lease incorporates all the terms agreed at the outset and delivers your desired results. You will also receive a full report on the final terms which you will be able to use as a quick point of reference throughout the lease term rather than needing to constantly refer back to what is likely to be a lengthy lease document.
Ongoing lease assistance
Our expertise does not end at the point at which the lease is granted, and the tenant has taken up occupation.
We understand the importance to landlords of actively managing their assets to maximise investment returns. To this end we can assist landlords with the following:
- Tenant applications for landlord’s consent under their lease, whether that is to enable an assignment or subletting to take place or to authorise alterations to their premises.
- Renewing leases, whether under the Landlord and Tenant Act 1954 or because of contractual negotiations or re-gears.
- New leases of empty units.
We also know that tenants may sometimes encounter issues during the lease term, may wish to vacate the property early or, conversely, may be keen to remain once the lease ends. We are able to advise tenants in relation to:
- Lease assignments and subletting.
- Break rights.
- Rights to renew leases.
- Surrenders.
- Relocations.
Our property litigation team can also help you if you encounter landlord-tenant disputes or need expert advice on lease terms, including in relation to:
- Rent review
- Dilapidations claims
- Opposing tenant’s renewal rights
- Tenant breaches of covenant and non-payment of rent
- Forfeiture of the lease
For more information about the lease services our property litigators can provide –> learn more.
Whether you are already a landlord or a tenant or are proposing to become either of these, our timely, commercial and practical advice can help you every step of the way.