Business Leases

Business leases are complex documents that carry real financial risks for both the landlord and tenant.

Our commercial property team has a wealth of expertise in the full range of business leases and commercial lease transactions, from;

  • Negotiation of new leases and lease renewals
  • Termination of leases
  • Sale and leaseback
  • Insolvency of landlord or tenant
  • Sub-lets
  • Assignments
  • Licences for alteration
  • Licences for change of use
  • Rent reviews
  • Surrenders

Business/Commercial leases

Things to consider:

  • How long do I want to be there – what is the proposed length of the lease?
  • Is there security of tenure?
  • Might I need a break clause to give back the property before the end of the lease?
  • Does the property have the correct planning permissions?
  • What am I taking a lease of? The inside of the building or the building as a whole?
  • Does the building require fitting out?
  • Are there any service charges?
  • Is VAT payable on the rent? Can it be recovered?
  • Have you considered stamp duty?
  • If a lease is for more than 3-4 years there will usually be a rent review. Are you happy with that timeframe?
  • Is there a schedule of condition to limit repairing responsibility?


Commercial property sales and purchase.

Commercial property can be freehold or leasehold.


What is a freehold?

The owner of a freehold usually owns the property: the land, and buildings. It is the outright ownership of land or property for an unlimited period.


What is a leasehold?

A leasehold is contractually time limited to the length of a lease. The ‘lease’ is a contractual document which sets out the relationship between the property owner (the Landlord) and the occupier (the Tenant).

The ‘term’ is the length of the lease.


How do I acquire a leasehold property?

You may be granted a new lease of a property – this can be done through the owner of the property or through a sub-lease through the current tenant.

Commercial property in the United Kingdom can be held via a limited liability company, partnership, limited liability partnership and unit trusts.

Tax implications must be considered when investing in any property.


Financing

Funding needs to be arranged and in place before contracts are exchanged. Deposits are paid on freehold property usually between 5-10% of the purchase price and payable on exchange of contracts, with the remainder payable on completion. Deposits are not usually paid on exchange of contracts of a new lease.


Timescale

The complexity and structure of a property transaction dictate the timeframe for completion – no two transactions are the same. It is usually the seller or landlord that sets the timeframe.

The commercial property team at Newtons is here to guide you through the entire process.

Please call us to arrange a meeting or contact us online and we will arrange to call at a time convenient for you.