Taking on a commercial tenant

You own commercial property and you want to derive income from it. So, you need a commercial lease. Commercial leases come in all shapes and sizes, depending on:

• the type of property and how the property will be used

• whether the lease is of whole or part

• whether you want to recover possession of the property when the lease ends

• how the costs of maintaining the premises will be met and

• last but by no means least, your budget

Remember that a lease will give your tenant the right to exclusive possession of your property for a period of time. During the term the lease will define the rights and obligations of the parties including rent, repair and insuring obligations. As the lease will create a transferable interest in land it’s very important that the lease is comprehensive and clearly sets out all material terms so that if the lease changes hands you can be sure that the same terms will continue to apply to your new tenant.

Your solicitor will craft your lease to suit your requirements. It’s worth taking the time to get it right. A properly drafted lease will be accepted more readily by tenants, saving time and transaction costs.

Benefits of instructing Julie West Solicitors

Experience - the way English property law works means every commercial lease is different. Our commercial property solicitors have combined experience of over 100 years helping clients with leases used in an innumerable variety of situations and so we are able to spot whether overall the deal you are being offered is okay.

Attention to detail - we are trained to pay attention to detail; we will carefully consider the documentation to ensure it is accurate and implements the terms you have agreed.

Explanation - we will explain what the documents mean. We’ll tell you about any important implications that may be missed by the untrained eye, so that you are fully aware of what you are going into and are prepared for any hidden traps.

How it works

Process

Once you have made contact with us, spoken with your solicitor and decided to go ahead we will send you our welcome pack of paperwork to complete and return.  

The stages of our work for you are likely to be as follows:

1. Review and advise on any heads of terms, whether draft or final.

2. Preparation of contract/lease documentation, to include:

   1. Investigating your title to grant the lease;

   2. Prepare draft lease, advising on terms, taking instructions, and making any amendments;

   3. Advice on lease plan(s); and

   4. Compiling replies to Commercial Property Standard Enquiries (CPSE), if appropriate.

3. Contract stage: issue draft contract documentation to your tenant for approval:

   1. Advising on and making any amendments;

   2. Dealing with any enquiries; and

   3. Applying for any necessary consents for example, from your lender, or any superior landlord.

4. Completion: once the documents are agreed, we:

   1. Prepare and check final versions of all documents and arrange execution;

   2. Calculate any apportionments, make any financial arrangements; and

   3. Arrange completion.

5. Following completion, we:

   1. Check and scan completed documents, provide copies; and

   2. Deal with post-completion formalities, including if applicable follow up to ensure lease is registered or noted at Land Registry, and register notices.

6. The final step is for us to provide you with:

   1. Updated title information and any original documents for safekeeping; and

   2. Our closing advice upon your file being archived.

meetings

You will always be asked if you would like to meet your solicitor.  Although a meeting is not a prerequisite to setting the terms of the lease, if you have the time, there is no substitute for meeting with your solicitor to have a tactical discussion about your aims for the work.  

Your solicitor may be able to offer you an appointment out of usual office hours if it helps you.  Our meeting room and client facilities have level access.  Our allocated office parking is right outside the office door.  If you are unable to make it to our office, your solicitor will come and see you at home.

Timescale

The completion date is negotiated between the parties and finally agreed after documents and enquiries have been settled.  Generally, we expect completion to happen within three months of you instructing us.

Strengthening your position with a contribution to costs from the tenant

Sometimes prospective tenants pull out before concluding a new lease leaving you with a bill for abortive legal costs. Whatever the circumstances, this is always upsetting, because not only have they wasted everyone’s time, they have cost you money, and you have nothing to show for it.

If you are approaching exchange or completion an unscrupulous tenant can try to force a landlord into making last minute concessions, by threatening to withdraw, knowing that the prospect of being left with a hefty bill for abortive costs will weigh heavily in the landlord’s decision making.

You can mitigate the effect of this by making it a condition in your heads of terms that your tenant agrees to pay your legal costs, including VAT and disbursements, whether or not the transaction proceeds to completion. It may be well worth compromising on the other terms, to get the tenant to agree to pay your legal costs.

It means your prospective tenant is fully invested in the transaction from the start. It is likely to focus the minds of your prospective tenant and his advisor, reducing the time spent negotiating and settling the wording of the lease and dealing with non- essential enquiries.

A tenant will have to think twice before walking away from the transaction.

Fee list for granting a new lease or taking on a tenant

Included in our fees

All retainers include:

1. A meeting to talk through your circumstances, timeframe and the options available to you.

2. Advice from a specialist commercial property solicitor tailored to your needs and delivered in a friendly and straightforward way.

3. Electronic copies of the completed documents for your records.

Telephone us on +44 (0)1372 383273 or complete our online enquiry form to make contact with your solicitor