Taking on a commercial property is an important decision for any business. A commercial lease can create significant financial and legal obligations, so understanding the terms before signing is essential.
Whether you are opening a new business, moving premises or renewing an existing lease, obtaining legal advice can help you understand the agreement and identify issues that may affect your business.
Check the length of the lease
The term of the lease is one of the first things to consider. You should understand how long you will be committed to the property and whether there are any provisions allowing the lease to end early.
Understand the rent and other costs
Rent is not necessarily the only cost associated with a commercial property. Depending on the agreement, you may also have responsibilities relating to service charges, insurance, repairs, maintenance and other expenses.
Understanding these obligations before signing can help you plan your business costs.
Look carefully at repair responsibilities
Commercial leases can place different responsibilities on landlords and tenants for repairs and maintenance. It is important to understand exactly what you could be responsible for during the lease.
Consider renewal and break provisions
Some leases contain provisions dealing with renewal or allowing a party to end the lease early. These clauses can have an important impact on your business and should be understood before you commit.
Get legal advice before signing
A commercial lease can have long-term consequences for your business. Having a solicitor review the agreement before you sign can help you understand your obligations and negotiate terms where appropriate.
At Goldman Knightley Solicitors, our commercial property solicitors advise landlords and tenants on a wide range of lease matters.
If you are considering taking on a commercial lease, contact our team for professional legal advice.