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Things to Consider Before Signing a Commercial Lease

  • The Law Society of Scotland

The commercial property solicitors at Claphams can provide comprehensive support on all matters relating to commercial leases. We regularly act on behalf of businesses looking to enter into leases for commercial premises, as well as those looking for support on issues such as lease renewals, assignments and surrenders, amongst many others.

Commercial Lease Basics

Commercial leases are legally binding contracts between landlords and commercial tenants. They give tenants the right to use the premises in a particular way for a set period for an agreed rent. Your lease will establish your rights and responsibilities as a tenant, as well as those of your landlord.

The courts treat commercial leases differently from residential leases – they are viewed as a contract entered into by knowledgeable and experienced business people who are expected to be able to negotiate terms themselves. As such, fewer protections are afforded when commercial contracts go wrong. For this reason, it is vital to have the support of an experienced commercial property solicitor before signing or negotiating your lease.

Full Insuring and Repairing Leases

Full insuring and repairing leases mean that, once you are the tenant, you are responsible for keeping the premises in good condition and trading legally. Any repairs are your responsibility, and you will have to pay insurance premiums that cover the property. It is your responsibility to make sure that you are happy with the insurance cover and to take out any additional insurance coverage you require. You will have to make sure that commercial rates are paid along with any local authority repair notices served during your lease.

Getting a Survey Carried Out

It is advisable to have a survey carried out before taking out a lease on a commercial property. Doing so will help you to decide if the financial considerations being asked for by your landlord, such as the rent, are fair in the circumstances. A survey will also bring to your attention any actual or suspected defects or any areas of disrepair. This is important because any defects that exist when your lease comes to an end will be your responsibility to repair – a survey carried out before you take up the lease gives you an accurate record of the building’s condition at the outset.

Early Termination/Break Clauses

These clauses give tenants the option to end the lease early – but there will typically be conditions attached to this. It is essential to check the wording of break clauses carefully to ensure you are fully protected should you wish to exercise it further down the line. Our commercial leases lawyers can read over your lease and advise on any potential issues and can raise these with your landlord before you sign.

Expert Commercial Property Solicitors Clarkston, Newton Mearns, Giffnock, Netherlee, Eaglesham, Carmunnock, Stewarton & Southside Glasgow

We have many years of experience working with commercial clients across Glasgow and the central belt. Our solicitors are friendly, approachable and commercially-focused with unrivalled attention to detail – whatever sector you are operating, the commercial property solicitors at Claphams can provide explicit, strategic support to help you achieve your business objectives.

Contact us today on 0141 620 0800 or fill out our online enquiry form.

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Please note we are a firm of Scottish Solicitors helping clients across Scotland and cannot help you if you are based in England.