Commercial properties represent both an investment opportunity for landlords and a trading opportunity for tenants. And when it comes to the lease on a property, it is important it is done correctly and both sides understand what they are taking on.
No two leases are identical, and each party involved must understand and accept their respective responsibilities and rights. Many shops, offices and other commercial land and property are held under leases of 5, 10 or 15 years’ duration or longer. Most of these leases are FRI (full repairing and insuring) leases. This means the tenant is responsible for repairing and maintaining the premises throughout the duration of the lease, and for paying all insurance costs incurred by the landlord. So, to all intents and purposes, the tenant is responsible for the premises, as well as the rent, rates, utilities and any service charges.
In such cases, the tenant should treat the lease transaction as they would a property purchase and make all of the same due diligence checks.
How can Thorntons help?
At Thorntons, we have extensive experience of acting for both landlords and tenants in the preparation, adjustment and completion of new leases for all types of commercial property. We can also deal with the review or extension of existing arrangements and the issues which arise on a transfer of either party’s interest.
We aim to ensure that your lease is drawn in clear and unambiguous terms so that there are no surprises when the rent is due to be reviewed, repairs are required or the lease is coming to an end. We will also tailor our service to suit your budget.
If you are a tenant, we will ensure that the risks associated with a commercial let are explained to you so that you can make an informed decision on the terms proposed.
For landlords, we can also offer a complete range of industry-accepted property management documents to record the history of changes which occur during the term of a lease.
Our team has considerable experience in this area, and with full legal services available at each of our office locations, you can be sure of local advice.