The majority of leases will allow the Tenant to transfer (often referred to by lawyers as “assign”) the lease with the Landlord’s consent. The Landlord may impose conditions on the transfer, such as: the outgoing tenant enters into an authorised guarantee agreement (i.e. you may be obliged to guarantee the performance of the lease terms by the incoming tenant); and/or the incoming tenant provides a guarantee.

Commercial Property

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Commercial Property Solicitors

At Bridge McFarland LLP, we’re different when it comes to commercial property. Our professional yet personable approach sets us apart from other property lawyers.

Our team of experts includes lawyers with more than 20 years’ commercial property industry experience. This, coupled with an acute awareness of business practices, gives us an unmatched level of expertise when it comes to your commercial property needs.

We provide cost-effective solutions for an array of businesses – from start-ups to large national clients – enabling them to use property to maximum effect and for all their business requirements. If you have complex property needs or if you just require help with a single property transaction, we are here to assist.

Our lawyers deal with a wide range of property transactions, including those relating to:

Industrial premises
Development sites
Healthcare surgeries
Pension investment
Security for business funding
Shops
Restaurants
Hotels
Betting offices
Pubs
Academies and multi-academy trusts, early learning and nurseries
Offices
Infrastructure agreements
Energy projects

Lincolnshire and East Yorkshire Commercial Property Lawyer

We also have particular expertise in agricultural and development property – see here.

Whether you are involved in developing or investing in property, or your property is simply a place from which your business operates, our property solicitors recognise your need for clear and concise advice. Working with you every step of the way, we will ensure that there are no surprises when you come to rent, buy or sell your commercial property.

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Commercial Property Frequently Asked Questions

This is a matter for negotiation at the outset of the Lease. In shorter leases, you may have one rental figure for the duration of the lease. In longer leases, it may be possible to negotiate fixed increases (rather than rely on market conditions) throughout the Lease. You should take professional advice from a chartered surveyor as to what constitutes a market rent at the outset.

Generally speaking a Business Lease of at least six months will enjoy what is known as “security of tenure” under the Landlord and Tenant Act 1954. This means that once the lease period has expired the Tenant will be automatically entitled to a further lease at a market rent provided certain steps are taken.

The grounds on which the Landlord can oppose a lease renewal under the 1954 Act are limited (eg. where the Tenant is seriously in breach of his obligations, or where the Landlord intends to redevelop the property or use it for his own business). However, some leases are “contracted out” and do not benefit from this protection.

It may be possible to transfer the lease (often known by lawyers as “Assignment”) if you can find a willing tenant however it will be necessary for the Landlord to approve the new tenant. Alternatively, you should negotiate a break-clause entitling you to end the Lease on a specified date or dates during the lease.

The majority of leases will allow the Tenant to transfer (often referred to by lawyers as “assign”) the lease with the Landlord’s consent. The Landlord may impose conditions on the transfer, such as:

the outgoing tenant enters into an authorised guarantee agreement (i.e. you may be obliged to guarantee the performance of the lease terms by the incoming tenant); and/or
the incoming tenant provides a guarantee.

Landlord’s will normally permit subletting, subject to their prior consent. The Landlord will want to approve the terms of the sublease.

The Landlord may have the benefit of a “break clause”. This is rare and for business continuity purposes you should be reluctant to agree to such a clause. However, the Landlord will have the right to terminate the lease for:

Non-payment of rent; or
A breach of the terms of the Lease; or
The Tenant becoming insolvent.

Unfortunately the professional rules which govern our profession prevent us from acting on both sides of transactions such as this. Both parties must be separately represented.

No one can be sure what the future holds. Whilst a long Lease may provide you with the security of knowing you will be able to occupy the property for a long period, it also exposes you to long-term liabilities.

For example, a fifteen year lease is a commitment to pay rent and comply with other obligations throughout a fifteen year period. You cannot simply walk away from these commitments because you wish to relocate or because of financial hardship. If you are entering into a new business venture there is much to be said for taking a short-term Lease with an option included in the Lease allowing you to take a further lease at the end of the term if you wish.

You should ensure that the property description in the Lease matches the physical description of the property. An accurate plan should be used. It is particularly important to establish what is and what is not included in the Lease (e.g. main walls/roof) as this could have an important bearing upon repairing responsibilities.

This is a Lease in respect of which the “security of tenure” protection of the Landlord and Tenant Act 1954 does not apply. You should be wary before agreeing a Lease on this basis. At the end of the lease period you will have no automatic right to remain in the property.

This is a “full repairing and insuring lease”. A full repairing and insuring lease would impose both full responsibility on the Tenant for repairing and insuring the entirety of the property. This would include repairing the structure (i.e. foundations, roof, external walls).

If you are required to sign a full repairing lease you should try to negotiate that at the end of the term of the Lease you are not required to put the property into a better state than that which it was in when you take the Lease. You could take photographs by way of evidence.

All necessary rights that you will need to enjoy the use of the property will need to be specified in the lease. These could include a right to access the property along a yard/passageway, a right to park, a right to store refuse and rights to access communal areas.

You should satisfy yourself that your proposed use of the property comes within the authorised use of the property for planning purposes. We can assist in this regard through making enquiries with the Landlord and searches at the local council.

It is usual for the Landlord to insure the property however the Landlord will have the right to recover the premium from the Tenant. So you can budget, details of the Landlord’s Insurance Policy should be obtained in advance.

A Lease of more than three years will normally contain a provision for Rent Review at regular intervals such as every third or fifth year. The rent will typically be increased to the market rate at the time of the review (known as an “open market rent review”).

Rent Review clauses are generally prepared on the basis that they prevent the possibility of a downward review. They tend to be upward only however this is a matter for negotiation at the outset of the Lease.