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As a commercial tenant, it’s important that you and the landlord complete the correct documentation so that all terms provided are officially agreed upon.
A leaseholder agreement can be written up and signed with the support of a legal adviser. With their help, what should be included in the leaseholder agreement before signing can be determined. They can also liaise with the landlord’s representatives. If any issues arise regarding the terms of the agreement, such as someone breaching them, your legal advisor will take the necessary action.
If you're renewing a commercial lease, we still suggest speaking to a legal expert, as it can be a lot more complicated than just continuing on with a similar lease. Legal changes in your industry, or with the quality of the property can have an impact on your lease agreements.
As a landlord, there are things you need to be aware of so that the running of your leasehold goes smoothly. On top of your leaseholder agreement, we would recommend ensuring you have landlord insurance. This will cover legal expenses or emergency assistance cover should there be any unexpected trouble at the property. You'll also need to get an energy performance certificate. As a landlord, you’re legally required to ensure a valid certificate is available to your tenants. Making energy saving changes to the property may also be necessary if your EPC score exceeds a C rating.
As a tenant, you should be prepared to assess and sign a leasehold agreement with your landlord. This is written up and put in place by a legal expert so that all parties are aware and agree upon a certain set of parameters for the tenancy.
With this leasehold agreement in place, it’s important to stick to the signed stipulations. If you fail to, the landlord and their legal advisor will be able to take action against you. Rules include things like paying your lease on time and maintaining the property. There may also be limits on what you can do in the property.
A new leaseholder agreement is a contractual agreement signed by the landlord and the tenant when a property is being leased. Within the agreement are terms and outlines that detail the stipulations of the tenancy so that both parties are aware of the obligations of the exchange. It's important to choose an expert lawyer with lease experience to support you in protecting your property longterm, and ensuring you're getting the best deal. You can also learn more about the cost of agreeing a commercial lease.
Yes, lease terms can be changed after the agreement has been signed. Both sides must first agree to any changes that take place before this can be actioned so that no shifts in the regulations are forced upon the other party.
We recommend discussing with your legal advisor if you want to alter your leaseholder agreement.
It's easy to think 'I'm simply renewing, I don't need a solicitor' but there are so many instances where things outside your control could have changed since your initial lease was signed. For example, there might have been changes in the law that will impact your business lease. Works may have been done by either the landlord or tenant. The break clauses may need to be updated, or there are agreements you've made in person but need to be put into the paperwork.
It's also worth being aware that if your new lease is over 7 years, it will need to be registered with the Land Registry. It's important you use a solicitor for a lease renewal.
Should there be any breach of your leaseholder agreement, with the help of a legal advisor, action can be taken. Legal action can include claims for damages for any loss suffered as a result of the breach, or an injunction to prevent the leaseholder from continuing to commit the breach. A forfeiture of the lease can also be enacted, if necessary.
Speak to your legal advisor to get a stronger understanding of how you can be supported should your leaseholder agreement be breached.
To create a leaseholder agreement, you’ll need to speak with a legal expert who will advise you on what you should include in it. Your leaseholder agreement might outline the property’s pet policy, any restrictions on excessive noise, and the length for which the tenant’s rental period lasts. Legal support in the creation and signing of this document will ensure you as the landlord and your tenant are clear on the expectations around living in the property.