Hillingdon Solicitors

HILLINGDON SOLICITORS COMMERCIAL PROPERTY & BUSINESS LEASE FAQ’S

What kind of issues should I consider with an office lease?

Firstly, you should consider the hours during which you may be able to use the office.  If your working patterns require, you might want to try and negotiate an out of hours agreement.  Any extra charges related to utilities (heating and general electrical use) should be clarified.  Secondly, you should consider whether you need parking for your business and how secure the parking is.  Thirdly, if there are areas of the property which are used in common, it is likely you will have to pay a service charge.  Common areas could include a reception, fire escapes and the like.  Thirdly, you should consider the break provisions in the lease.  Break clauses can be both unilateral and multilateral in nature and often state that the lease will only have effect where the premises are returned in their original condition.

Do I need to register my lease with the Land Registry ?

If your lease is seven years or longer, you must register it with the Land Registry.  Naturally, there are extra legal costs for this which cover the application fees and ensuring that the lease complies with the Registry’s requirements.  Registration, however, does afford the tenant with some benefits; as the lease will be registered, it will be protected against any third parties such as the landlord’s lenders.

What is my liability for dilapidations ?

Commercial leases will generally require that the premises are left in a good state of repair and decoration when the lease is over.  If you have made any alterations to the property, you may be required to return the property to its original state. Some leases may even require that the property is handed back in a state than it was in when the tenant took possession of the property, so it always pays to carefully check a lease and consult a commercial property solicitor. If you do not comply with any dilapidations clauses, the landlord may put in a claim for damages against you.

In deciding the extent of your potential liabilities and your ability to negotiate a financial settlement with the landlord at the end of the lease term, you should look at the length of your lease, whether the owner has any plans to develop the property and the overall health of the letting market.   If the landlord requires you to return the property back to its original state, but you have evidence that he has plans to develop the property, obviously there might be little sense in return the property back to its original state, particularly if the building is going to be pulled down.

Can I renegotiate the terms of my lease if I have a right to renewal under the Landlord and Tenant Act 1954 ?

If you cannot agree on new terms with your landlord, the law generally states that the terms of the lease should remain the same as the original, bar any clauses relating to the rent, which is decided according to reasonable estimates of current market rates for the type, size and location of the property.  If you cannot come to an agreement, the courts can decide on the terms of the new lease with reference to the old agreement, intentions of both parties and any other relevant circumstances.

For commercial lease lawyers in Hillingdon, please follow the link.