Grant of a New Lease

The purpose of this brief is to provide you with an insight into the content of a commercial lease and the processes leading to its grant.

The grant or taking of a commercial lease involves very significant responsibilities and obligations. It is tempting (whether you are a landlord or a tenant) to proceed to completion of the lease as soon as possible – after all, it is at that point that the landlord starts to receive rent and the tenant has the benefit of occupation. However, it is important that proper consideration is given to your needs and the possible effect on your business of each particular lease:-

  1. A lease wrongly biased in favour of a tenant may affect the value of the landlord’s freehold interest. A lease wrongly biased in favour of a landlord may make that lease an onerous liability which the tenant cannot assign and release himself from.
  2. A lease which fully reflects your needs should enable the landlord and the tenant to understand their legal position between one another with clarity and certainty for years to come.
  3. Even if the lease is for a relatively short term, they are often renewed. On renewal the same terms are generally incorporated. In other words, do not be lulled into thinking that “this is just a short lease” and that its terms are less important.

We set out below a summary of the principle considerations and steps encountered in the grant or taking of a commercial lease. A number of steps are required even before the lease itself if considered. You need to allow sufficient time for these steps to be taken before you agree a completion date.

 

Other areas we cover:

Buying A Commercial Lease | Buying A Freehold Property | Lease Renewals | Rent Reviews | Selling A Commercial Lease | Selling A Freehold Property

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