Where a tenant or landlord is involved in negotiating a new lease for an office or other commercial property there will be certain issues which are likely to become apparent that are specific to that type of property, and certain issues that are more general.
Where retail premises are concerned, the terms a lease is agreed on can affect not only the ability of the business to trade efficiently, but also its value and marketability if the company wishes to move on.
There is currently a perception that bankers are at least partially responsible for the global credit crisis of 2009. It is perhaps, therefore, ironic that it is with bankers that businesses and investors have to negotiate when the problems following on from the credit shortfall affect cash flow.
Collateral warranties are duties of care owed by a building contractor and/or any member or company of the professional team (e.g. architects, surveyors, planning consultants, M&E consultants, contractors, civil engineers, project managers) to the developer/ landowner which are then passed onto a buyer, tenant, or lender.
Use classes must be considered by anyone entertaining a new lease, both tenants and landlords. Both the local authority and the lease itself can define what kind of use a tenant can engage in.
In times of recession, even with the best of intentions, tenants can find themselves in a position where rent cannot be met. Meanwhile, landlords are in no better a position, and may feel that their hands are tied and that they must take tough steps to remedy the situation.
Buying or selling a business is nearly always more complex in practice than it seems over an initial meeting. Good legal advice at an early stage is always necessary to avoid valuable time and money being lost, either because renegotiation is necessary later down the line, or even worse because a bad deal wasn’t recognised and walked away from near the outset.
When a tenant engages in a new commercial lease, the temptation can be to get in and start trading as soon as possible, and while this is of course on its own a good idea, a commercial lease’s terms can hold legal time-bombs in the form of unpalatable rent review and / or break clause provisions that only become apparent years later.
Alienation is a legal term which refers to assignment and/or subletting (also called underletting), and parting with possession or occupation. Mary Monson Commercial Law Solicitors can advise on assignments on commercial leases of all types.
Primarily, most business tenants are afforded the protection of the Landlord and Tenant Act 1954. This means that a business tenant cannot simply be thrown out on the street, and also has rights to renew a lease at its end in certain circumstances.