Five FAQs about commercial leases


What is the main piece of legislation I should be aware of in regard to commercial leases?

Anyone who enters into a commercial lease agreement must fully comply with the terms of the Landlord and Tenant Act 1954. The Act gives a legal framework for commercial lease negotiations, and protects the rights of all parties. As a commercial lease is a complex legal document, always have the services of a commercial property solicitor available throughout the negotiation process.

What could happen if I break the terms of my commercial lease?

The consequence of breaching a commercial lease will depend on how these events have been defined in the lease agreement itself. Your solicitor can assess your lease and outline what could happen, for example you may be expected to pay all the remaining rent for the term of the lease. Your solicitor may, however, be able to negotiate with the landlord for an agreeable settlement.

Can I alter or improve the premises I am leasing?

In most cases the changes you can make will be outlined in your lease agreement. In addition, your landlord may specifically outline what changes you are prohibited from making, for example if the property or parts of the property are listed and therefore cannot be altered. Your solicitor can check your lease agreement to ensure that there are no punitive costs for making the changes you need to run your business successfully.

Is it possible to sublet a commercial lease?

Some landlords will not allow their tenants to sublet their premises. However, other landlords recognise that this could be a way to avoid a tenant defaulting on their rent payments. Your solicitor can consult the lease agreement for any conditions that would be attached to any subletting you wanted, if it is allowed under the lease.

Do I need a solicitor to help with my commercial lease?

Yes, as commercial leases must be correctly negotiated and set up to ensure that the tenant and landlord know precisely what their responsibilities are. If you want to make a change to your lease, or if you enter in to a dispute about your lease, the services of a commercial property lawyer are even more important to obtain.

If you would like to obtain legal advice on commercial leases, Caven can put you in touch with a local commercial property solicitor free of charge. So, if you have any questions or would like our help in finding local commercial property solicitors please call us on 08001 221 2299 or complete the web-form above.

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