Have a look at our informative legal guides to help you feel prepared.
The costs of buying commercial property don’t end with the purchase price. From taxes to operating costs, there are many additional costs associated with buying commercial property that you’ll need to factor into your budget.
Getting commercial property that's right for your business is essential. But what should you look out for before you buy?
When renewing a commercial lease, it is essential to check whether the lease is protected under the Landlord and Tenant Act 1954. If the lease is covered by the Act (‘protected’), either party has the right to renew the lease when it comes to an end.
Most businesses rent commercial premises from landlords. Compared to buying premises, the upfront costs are lower, freeing up more capital.
It is advisable, for both landlords and tenants, to obtain professional legal advice when setting up a new lease. The lease is a legally-binding contract which sets out the terms on which the tenant may occupy the landlord’s property, and so it is essential that it is appropriate for the parties’ needs and circumstances.
Most commercial property leases in England and Wales are subject to security of tenure under the Landlord and Tenant Act 1954. This means that both tenants and landlords have the right to renew the lease when it comes to an end, any number of times.
In most (but not all) cases, assignment of a lease will require the landlord’s approval of the incoming tenant. The extent of the landlord’s involvement, as well as factors such as the property’s rental value, cause variation in the costs of different lease assignments.