Auction property with bate & albon in Lewes

A commercial lease is a legally enforceable contract between a property owner and a business tenant, outlining the rights and obligations of both the property owner and the tenant throughout the agreed-upon lease period.

The laws around commercial leasing can be complicated and hard to navigate, with implications being very expensive. By seeking expert advice before you enter into any agreement, it allows you to understand your exact liabilities, preventing any surprises down the line.

Freehold property means you own the building and land out right, until you decide to sell it. In contrast, when you own a leasehold property, you own the leased property, the extent of which will vary from lease to lease, for a set number of years, but not the land.

Commercial leasing comes with costs and fees. You’ll need to consider the cost of building insurance, stamp duty, potential VAT, any service charges for the business premises, approval fees for alterations or subletting and the cost of Registering the lease at the Land Registry.

In short, yes. Owning a long leasehold interest is still subject to the contractual terms and you will still have to comply with the lease terms.

When your lease comes to the end of your contractual term, for leases that fall within the Landlord and Tenant Act 1954, you’re entitled to a new lease on the same terms as your previous contract (subject to any market changes in rent). Our team are able to advice on whether the Landlord and Tenant Act 1954 applies to your lease, and your options for lease renewal.

For commercial property, the wording of the lease is crucial as to understanding your insurance obligations, but generally you’ll need to consider building and contents insurance, which together cover the business premises, its contents (including stock) and equipment.

Commercial property owners’ liability insurance is crucial for protecting against disasters such as burst pipes, fallen trees, fire, flooding or theft.

Advised and recommended, a commercial property survey is a key part of the due diligence process. It provides valuable information and helps prevent problems down the line, flagging any risks and helping you make the right decision on your property purchase.

Residential property: a building used as a living or dwelling space. Commercial property: a building intended for business purposes and non-residential activities, such as for offices, industrial sites, or retail.

For residential properties, the leasing term is usually 99- 999 years, with commercial, the leases are usually 3-5 years.

An Overage agreement is where a buyer will have to pay an increased price if circumstances change, for example, if planning permission is granted and therefore the land value has risen.

If you’re a landlord of a commercial property, the tenant is in breach of lease and the lease allows the landlord to forfeit on those specific grounds, then forfeiture may be an option. This should however be considered in the context of all remedies that may be available to a landlord, including debt recovery and statutory demands. Our team are on hand to guide you through the options.

If your tenant isn’t paying their rent, you will likely have a number of remedies, the most appropriate of which will depend on the specific circumstances of your situation. Traditional options include forfeiture of the lease, debt recovery and statutory demands.

The rules for eviction must be carefully followed to avoid substantial claims for loss of profit and unlawful eviction. If you need expert advice on how to approach your tenants, talk to our team.

Generally, when selling or leasing your commercial property, you will be required to complete Commercial Property Standard Enquiry (CPSE) forms. There are currently 7 CPSE

forms, each unique to the type of transaction. These forms can be complicated and lengthy, it is therefore important to seek expert legal advice to make sure they’re accurately completed. Failure to sufficiently comply with these stands could leave you liable at the other end of your commercial property sale.

Stamp Duty Land Tax is payable on commercial property purchases and leases.

Whenever a commercial property is sold with tenants in situ, those tenants’ current lease agreement is binding, even with new landlords. As a consequence, buyers cannot simply acquire the property and immediately raise the rent.

A lease surrender is when a landlord and a tenant mutually decide to end a commercial lease before the contract date, the landlord takes back control of the property on the agreed date. However, it’s important to seek legal advice before making any decisions.

A leaseback allows the owner of a property to sell it to an investor while continuing to occupy the property, the investor would then become the landlord in this scenario.

As a landlord, you need to ensure you’re fulfilling all the necessary obligations and responsibilities that come with commercial leasing. The landlord’s obligations will be set out within the specific wording of each lease.

Both legally binding contracts, the key difference between the two is that leasing is a formal agreement to occupy a property, whereas a licence is a more informal permission to use the property and without exclusive use of the property.

Here at Bate & Albon, we have years of experience in commercial property. With a wide range of legal obligations and complicated processes for both landlords and tenants, each commercial property scenario is unique. It’s therefore important to talk to one of our specialists about your situation, so we can provide expert, impartial advice.