Commercial Property Tenancies
Including the Grant, Renewal and
Termination of Leases, Licences
and Related Matters

Whether you are a landlord or tenant, our Commercial Property solicitors and lawyers can help with various aspects of commercial property tenancies, including the grant, renewal, and termination of leases as well as licences. Our services ensure that the legal and procedural elements of these transactions comply with relevant laws and protect your interests. Our work could include the following:

1. Grant of Leases

When a new lease is created or “granted,” we assist in the following ways:

• Negotiation of terms: We help negotiate the lease terms (rent, length of the lease, tenant responsibilities, service charges, repair obligations, etc.) to protect your interests.
• Drafting and reviewing lease documents: We ensure the lease is clear, legally binding, and contains the necessary clauses to protect you. We often draft or review:
  • Heads of Terms: The main commercial terms of the lease.
  • Full lease documentation: Including break clauses, rent review provisions, repair obligations, and dilapidation clauses.
• Due diligence (where acting for the tenant): This involves investigating the property’s title, confirming the landlord’s ownership, checking for any restrictions or covenants affecting the property, and conducting local authority searches.
• Advising on statutory rights: In some cases, we will advise on statutory protections such as those found in the Landlord and Tenant Act 1954, which provides security of tenure for commercial tenants.
• Registration (where acting for the tenant): If the lease is for more than 7 years, we will handle its registration at the HM Land Registry.

2. Renewal of Leases

Commercial property lease renewals, particularly those falling under the Landlord and Tenant Act 1954, have specific legal processes. We provide assistance in:

• Advising on rights under the 1954 Act: This legislation gives tenants of business premises certain rights to renew their lease unless the landlord can oppose it under limited grounds (e.g., redeveloping the property). We advise on whether the lease is protected and guide you on your legal rights, either as landlord or tenant.
• Serving notices: Both landlords and tenants need to serve notices at specific times to either start the renewal process or indicate opposition to renewal. We ensure the correct notices are served within the appropriate time frames.
• Negotiation and drafting of new leases: We negotiate new lease terms (such as rent increases, extensions to the term, changes to repair obligations) and ensure they are properly documented.
• Court proceedings: If the parties cannot agree on the renewal terms, our Dispute Resolution team may be able to represent you in court proceedings to determine the terms of the new lease or if a renewal should be granted at all.

3. Termination of Leases

Terminating a commercial lease can be a complex process. We assist in several key areas:

• Exercising break clauses: Many commercial leases contain break clauses, allowing either party to terminate the lease early under certain conditions. We advise on the terms and conditions that must be met to validly exercise the break clause.
• Serving termination notices: If the lease is being ended through a break clause or at the end of the lease term, we ensure that the correct notices are served within the legally required time frames.
• Dealing with dilapidations: At the end of the lease, tenants may be required to restore the property to its original condition. We help manage dilapidation claims, including negotiating the scope of works required or handling disputes if the landlord claims the tenant has not met their repair obligations.
• Surrender of leases: Sometimes, the landlord and tenant agree to end the lease early by mutual consent (a “surrender”). We draft and negotiate surrender deeds to formalise this and ensure that any outstanding liabilities (e.g., rent arrears, dilapidation claims) are resolved.

4. Licences

A licence grants the right to use property without creating a formal lease. We assist with:

• Drafting and advising on licences: We draft or advise on documents such as licences to occupy (for short-term use) or licences for alterations (where a tenant wants to make changes to the property). We ensure the licence reflects the client’s needs.
• Licence for assignment or subletting: If a tenant wants to assign the lease or sublet the premises to another tenant, a landlord’s consent is typically required. We prepare or review licences to assign or sublet.

5. Dispute Resolution

If disputes arise during the lease term or during renewal/termination, our Dispute Resolution team can help with the following:

• Negotiation and mediation: We attempt to resolve disputes through negotiation or alternative dispute resolution methods such as mediation.
• Litigation: If necessary, we can represent you in court or tribunal proceedings, whether the dispute is over rent arrears, repair obligations, lease renewal, or possession of the property.

In summary, our Commercial Property solicitors and lawyers play a vital role in commercial property transactions, ensuring that leases, licences, and related agreements are legally compliant and tailored to protect the interests of our clients. Our involvement extends from the initial grant and renewal of leases to the termination of tenancies and management of disputes, providing a comprehensive legal service to both landlords and tenants.

If you wish to discuss a case with us, please contact Julian De Giovanni on 01420 81281 or fill in the form below.