Commercial Conveyancing & Leases

Dealing with commercial real estate does not need to be more complicated than domestic property, provided you have the right people to advise and assist you. If you are considering entering into a commercial property transaction, it is a good idea to speak to a solicitor about your business and plans to make sure you understand the conveyancing process and to get some tips on what to look out for. 

Buying a commercial property

Commercial property is often seen as a good investment opportunity, however, if you run a business, you may well be considering purchasing the right premises for your office or retail outlet. Getting the right – or wrong – commercial property can heavily impact the success of your business or investment plans.

You will need to check the planning use for any proposed property as all commercial property is classed according to its use, for example, hotel, shop, industrial site, office, etc. It may be possible to adapt the premises to your proposed purpose, however you will you usually be required to get planning permission and will need to factor in the relevant time and costs for this process. 

When it comes to purchasing any of these premises the conveyancing process may vary a little. Large commercial properties will obviously be more complex and take longer to ensure all the finer details of the purchase have been dealt with. It will be necessary to investigate the property title and carry out pre-contract searches. It is likely questions will arise that need to be dealt with by the seller of the property. 

The due diligence stage is crucial when considering the purchase of a commercial property to ensure that no costly mistakes arise in the future. We can guide you through the process and recommend the necessary searches and investigations to help protect your interests and will advise you on the important legal issues. 

Leasing property

Whether you are a landlord or tenant it is good to know you have a safe rental agreement in place for commercial security. A lease agreement is a legally binding contract that allows the tenant to use the premises for business purposes for a set period. It sets out the terms and the rights and responsibilities of each party, and contains a description of the property, its address and the intended use. The lease includes the length, the consideration including the deposit and rent, payment of service charges and rights of forfeiture/termination for each party under the lease. It may also include any subletting or assigning rights and who is responsible for insuring the property and contents. 

Before signing a lease agreement, you need to consider each element of the lease, including the responsibilities of the tenant and the landlord, hidden costs, the length of the lease and whether or not a break-clause will be required. A deposit will be required, and rent is usually paid quarterly, but the lease agreement can be more flexible than a domestic one.

Most commercial property leases in England and Wales are subject to security of tenure under the Landlord and Tenant Act 1954. This means both the tenant and landlord have the right to renew the lease any number of times, when it comes to any end. A landlord can refuse to renew a commercial lease, where certain conditions are met, but the onus to prove the conditions would be on the landlord.

Commercial leases can be assigned to a third party provided the landlord agrees. The new tenant normally assumes all liabilities from the outgoing tenant and therefore negotiations should be conducted carefully to avoid unintended consequences.

Before entering a lease agreement, you should obtain legal advice from an experienced commercial solicitor. We can assist with all aspects of commercial leasing including:

• drafting and reviewing commercial leases
• negotiating the terms of the lease 
• subletting of premises
• dispute resolution

There are many issues to consider when buying, selling or leasing a commercial property. It is a major financial decision with many steps and due diligence involved before making an informed decision. We work with a range of clients assisting them with their commercial property needs and guiding them through the transaction. You will be informed at the outset of the likely costs, timelines and legal risks associated with the transaction.

If you need assistance, contact one of our lawyers at [email protected] or call 01865722383 for expert legal advice.

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