Commercial Lease Solicitors

Understanding commercial leases

Commercial leases are significantly more complex than residential leases. They must strike a balance between the tenant’s business needs and the landlord’s investment objectives. This can often result in lengthy negotiations around issues such as rent reviews, service charge payments, property maintenance, authorised operations, alterations, rights of entry and other matters. The goal is to ensure that the tenant does not damage or devalue the property, and the landlord does not interfere with the tenant’s business.

In the bustling business landscape of London, commercial leases play a pivotal role. They provide the foundation for businesses to operate from physical locations and grow without being tied down by the financial and logistical commitments that come with owning property. For landlords, commercial leases are a valuable source of rental income and can be hugely profitable if managed correctly.

The commercial property team at Osbornes can help you realise these benefits by providing expert advice on your lease negotiations.

Our commercial lease services

Lease negotiation and drafting

Signing a commercial lease is often a 10+ year commitment and missteps can have serious consequences. The commercial leasing team at Osbornes can help you balance the commercial realities of your relationship while steering you clear of pitfalls and reducing the potential for future commercial property disputes.

Our services start at the heads of terms stage. Even the most innocent-looking terms can have far-reaching implications. We make sure you understand the financial and legal consequences of the key lease clauses, leading to a smoother transaction when it’s time to negotiate the lease.

Cancelling a commercial lease is not straightforward. As a tenant, you will need to find a replacement occupier to assign the lease to if you wish to leave before the end of the term. This will be difficult if the lease contains onerous conditions that a new tenant does not wish to take on, or the lease restricts who you can transfer it to.

For landlords, a poorly drafted lease can bite you with disputes further down the line or even reduce the value of your property.

We can help you get things right from the outset so costly mistakes are avoided.

Lease review and due diligence

If you have been offered a lease or heads of terms agreement, we can review it and advise whether the terms are acceptable. We lay out the options so you have the bargaining power to renegotiate terms and know your options before committing.

Common issues we help our clients with include:

• Understanding the long-term financial commitments you may be accepting so you can make an informed commercial decision.
• Identifying restrictive clauses such as onerous repairing obligations or rent review clauses that could cost you money in the future.
• Understanding if the lease could restrict expansion or changes of use if your needs change.
• Understanding dilapidations liabilities at the end of the lease.
• Deciding whether a flexible break clause is desirable.
• Negotiating service charge provisions to avoid unfair costs.

Lease renewals and amendments

The Landlord and Tenant Act 1954 gives business tenants the automatic right to renew their lease when the contractual term comes to an end. If the commercial lease enjoys the protection of the 1954 Act – and not all commercial leases do – then the landlord and tenant must take specific steps to either renew or not renew the lease.

For landlords who wish to oppose a lease renewal or tenants who want to initiate the process, a Section 25 notice plays an important role. Understanding how and when to issue or respond to a Section 25 notice is essential to avoid delays and disputes. Learn more about Section 25 notices here.

Our solicitors can help you exercise (or oppose) the right to renew, and negotiate new terms that suit you.

The overriding presumption is that a commercial lease renewal lease will contain more or less the same terms as the existing lease, and it is up to the party requesting a change to justify why the lease needs adjusting. This may lead to complex negotiations around what is a reasonable update and what is not.

Our expert commercial lease lawyers are well equipped to handle these negotiations on your behalf and secure the best outcome for you.

Deed of variation for a lease

A deed of variation for a lease allows a landlord and tenant to modify the terms of a business lease. This legal document details the agreed-upon changes, such as extending the term of the lease, changing the amount of ground rent payable and altering terms related to how the property can be used

Our specialist lawyers have decades of experience dealing with commercial lease variations. We can help you negotiate a lease restructure that reflects market conditions and the needs of your business.

• Related reading: What is security of tenure?

How much does a commercial lease cost?

The legal fees for negotiating a commercial lease can vary significantly as they hinge on several key factors. These include:

• The complexity of the lease agreement
• The property’s rental value and length of the term
• Whether it is a brand new lease or a renewal lease
• Whether there are any unusual clauses or stipulations that require additional legal examination
• Whether supplemental documents are required, like a rent deposit or guarantee

In most cases, we will take your matter on a reasonable, fixed-fee basis, giving you the certainty that there will be no unexpected costs further down the line.

Our services related to commercial leasing

• Deed of variation for leases – Enabling landlords and tenants to change the terms of a commercial lease
• Commercial conveyancing – Buying and selling commercial property such as offices, shops, factories, warehouses, gyms, restaurants and hotels.
• Commercial property dispute resolution – Practical advice to landlords and tenants on all types of commercial property disputes
• Lease management – Including assignments, subleases, commercial lease renewals, licence to alter, forfeiture, rent reviews and dilapidations
• Real Estate Finance – Helping our clients negotiate commercial property funding
• Planning law – Guiding developers, house builders, land owners, lenders and public bodies  through the planning process
• Property investment law – Advising property investment transactions, from single-lease properties to multi-let portfolios
• Rights of way, rights for utilities and other easements
• Liquor licence applications

Why choose our commercial lease solicitors?

Whether you’re an established landlord with a large portfolio or a tenant embarking on your first business venture, our commercial lease solicitors are here to assist. Our team handles commercial leases for all property types, including offices, shops, warehouses and restaurants, from high street units to state-of-the-art factories with multi-million-pound rents.

With years in the commercial leasing sector, we bring a depth of experience few can match.

Our jargon-free advice is always practical, focusing on the commercial realities as well as the legal issues that may arise from the transaction. Clients work with us because we are efficient, transparent and always put their best interests first. And we can do the same for you.

Speak directly with one of our experienced solicitors today. Call us on 020 7485 8811 now for a confidential discussion. Or visit our London offices in Camden or Hampstead to have a face-to-face meeting with our commercial property experts. We’re here to provide you with the support and guidance you need.