Commercial Leases

When entering a commercial lease, whether as a landlord or a tenant, having a well-structured and clear lease agreement is essential for protecting your interests. At DTM Legal, we provide comprehensive support for all aspects of lease agreements, ensuring that your rights and obligations are clearly defined. Our expert team will guide you through leasing commercial property, tailoring each agreement to meet your specific needs.

Our Commercial Lease Services

At DTM Legal, we offer a wide range of services related to lease agreements, including:

Drafting and Reviewing Lease Agreements: Ensuring that the lease terms are legally sound and meet your requirements.
Lease Renewals and Variations: Assisting with renewals or variations to existing leases, ensuring both parties are protected.
Rent Review Advice: Helping landlords and tenants understand their rights during rent reviews and negotiating terms where necessary.
Dilapidations Advice: Advising on repair obligations and liabilities at the end of a lease term.
Subletting and Assignments: Guidance on transferring lease obligations to third parties.
Termination and Break Clauses: Assistance with understanding and executing break clauses or early termination rights.
Dispute Resolution: Offering support in resolving lease-related disputes through negotiation, mediation, or litigation.

Key Terms in Commercial Leases

Understanding the following key terms is essential when negotiating or reviewing a lease agreement:

Lease Term: The length of time the lease will be in effect.
Rent: The amount payable by the tenant to the landlord, usually on a monthly or quarterly basis.
Service Charge: A contribution by the tenant towards the upkeep and maintenance of common areas or services provided by the landlord.
Repairing Obligations: The responsibilities for maintenance and repairs, which may be divided between the landlord and tenant.
Break Clause: A provision allowing either the landlord or tenant to terminate the lease before the end of the lease term, under certain conditions.
Rent Review: A mechanism for adjusting rent during the lease term, typically based on market rates or a pre-agreed formula.
Alienation: The tenant’s right to assign or sublet the lease to a third party

Frequently Asked Questions (FAQs)

1. What is a commercial lease?

A commercial lease is a legally binding contract between a landlord and tenant, outlining the terms under which the tenant may occupy a commercial property.

2. How long does a commercial lease last?

The length of a commercial lease can vary, but common terms are between 3 to 10 years. Some leases include a break clause allowing termination earlier if certain conditions are met.

3. Can I negotiate the terms of a lease?

Yes, many lease terms are negotiable, including rent, repair obligations, and the inclusion of break clauses. It is advisable to seek legal advice before signing any agreement.

4. What happens if a dispute arises during the lease term?

If a dispute arises, you may be able to resolve it through negotiation or mediation. If necessary, we can provide legal representation to help resolve the matter through litigation.

5. What is a rent review?

A rent review is a provision that allows the landlord to adjust the rent after a set period, often to reflect current market conditions. The terms of the review will be outlined in the lease.

Considerations Before Speaking to a Solicitor

Before contacting a solicitor regarding your lease agreement, it’s useful to gather the following information:

Property Details: Ensure you have a clear understanding of the property you intend to lease.
Desired Lease Terms: Consider the length of the lease, your budget for rent and any service charges, and any break clauses you may want to negotiate.
Your Business Requirements: Consider how the lease will meet the needs of your business, both now and in the future. For example, do you anticipate needing more space or flexibility in the near term?
Repair Obligations: Understand the potential costs of maintaining the property and how these responsibilities will be divided.
Exit Strategy: Consider how you would like to handle the end of the lease term, including renewal options or exit strategies such as break clauses.

Contact Us

For further advice or to discuss your lease agreement needs, please contact Anna Duffy at anna.duffy@dtmlegal.com or call 0151 321 0000 / 01244 354 800. Our team of expert solicitors is ready to assist you with all aspects of commercial lease agreements.

Terminating a Business Lease