In addition to residential conveyancing, we also act for purchasers and sellers of properties used for commercial purposes.
In commercial conveyancing there are additional considerations which must be taken into account, for example, we check with the local council permits or prohibits the commercial use of the property.
For instance, a business may want to purchase land and redevelop it and use it for something different than what it is currently used for. This would involve getting planning permission from a local authority.
We can accept instructions to negotiate a draft lease or assist in the assignment of a lease.
Commercial leases place specific obligations on both the landlord and the tenant. Standard clauses found in commercial leases include the term of the lease, the premium to be paid by the tenant, the amount of rent to be paid and provisions on who pays for insurance.
There are further essential clauses of a commercial lease which include:
Rent and Rent Review
- Rent reviews allow for the periodical adjustment of commercial rents to the current market value at the date of review.
- Rent reviews take place at whatever intervals are agreed in the rent review clause(s) in the commercial lease
Landlord and Tenant covenants (USER CLAUSE)
- Clauses which contain what the Landlord/Tenant must or must not do
- Leases often include a covenant which restricts tenants ability to alter the layout and structure of the property so as to prevent damage and retain the character/value of the property.
- Covenants to repair will note which party is responsible for maintenance and repair for different parts of the property – costs of which are usually recoverable by way of service charge
- Covenants which restrict the tenants right to part from the property i.e. through assignment, subletting and mortgaging.
- Service charges are the maintenance costs which arise when there is multiple occupation of the landlord’s premises. The landlord will retain the common parts of the property, e.g. stairs, corridors, lifts etc.
- A break clause is an agreement that a fixed term lease can be ended early on notice by either or both the landlord or tenant.
- Forfeiture is the early termination of the lease by the landlord when the tenant is in breach of covenant either to pay the rent or some other obligation.
Security of Tenure
- The Clause which deals with continuing/ ending the tenancy once the lease has run out.
If you have any queries regarding commercial conveyancing please contact our conveyancing solicitors on 020 8877 3421 or by email firstname.lastname@example.org