What are the key terms that need to be covered in a commercial lease? Part 2
Agreeing the terms of a lease can seem like a formality but it is important to take the time to make sure that the lease reflects what both landlord and tenant want to achieve. In the second of three articles on this subject, Louis Mathers commercial property solicitor with Parnalls in Launceston explains some of the key terms that need to be included to deal with what happens during the lifetime of the lease.
[Click here to read Part 1 if you missed it].
Repair and insurance
Both landlord and tenant will want the property to be well maintained and both will have some obligation to repair. The extent of the obligation will vary depending on the type of property and exactly what is let to the tenant. A commercial lease of a floor or unit in a larger building or development will usually exclude structural parts and the landlord will be responsible for maintaining these, as well as any shared areas and access routes. The tenant will usually be required to keep the property included in the lease in good and substantial repair and condition, except where damage is covered by insurance. If the property is in poor condition when the lease is granted, the parties may limit the tenant’s obligation to keeping it in no worse state than at the date of the lease. An agreed schedule of condition, usually accompanied by photographs, will be attached to the lease as evidence.
The landlord will be required to insure the property, recovering the cost of the premium from the tenant. As long as the tenant does nothing to invalidate the insurance, the landlord will be responsible for repairing damage covered by insured risks, using the insurance proceeds. The lease will usually give the tenant a period free of rent if damage is so severe that the property cannot be used. Either party may have a right to end the lease if the property has not been fully repaired within an agreed time.
Landlord’s right of access
The landlord will want the right to enter the property in a range of circumstances, including to check whether the tenant is complying with the lease and to remedy breaches if the tenant fails to do so. The tenant will want to agree limits, such as reasonable notice and the right to accompany the landlord during any inspection.
Alterations and handing back the property
During the life of the lease the tenant may want to alter the property, perhaps re-configuring the internal layout or adding new heating or air conditioning. The landlord will want to prevent any damage to other parts of the building or development and make sure the property is in a lettable condition at the end of the lease. The usual compromise is for the tenant to be allowed to make non-structural alterations to the inside of the property, as long as the landlord consents in advance. The landlord will usually agree to be reasonable in considering requests for consent. Some minor changes may be allowed without the need for prior agreement. Structural alterations are usually prohibited.
The lease will set out the expected state of the property at the end of the lease, in the ‘yielding up’ clause. The tenant will usually have to remove all alterations and hand back the premises empty and in a good state of repair. This is an area ripe for dispute at the end of the term and both parties may need legal advice.
For more information on commercial leases, or any other commercial property matter, please contact Louis Mathers on 01566 772375 or email email@example.com
Been Asked to Sign an Employment Settlement Agreement? Seek Advice Urgently...
Services Update: Continuity of Legal Service Provision
Advising You in Uncertain Times
Could carelessness on social media land you in court?
Is an electronic signature on a commercial property document acceptable?
What happens when there is no health & care LPA in place
Social Media Training for Businesses
Information to gather for your probate solicitor
Gazundering, what it is and how to avoid it
Relief from forfeiture – what happens if the tenant forgets to pay the rent?
Not so safe at work - compensation for an accident at work
New organ donation law: giving you control
Running a business from home
Have nude photos of you or your teenager been posted online?
Landowners’ rights and the Electronic Communications Code
Building in your back garden
Christmas is a time for giving (and inheritance planning)
Buying the freehold of your leasehold house
Redeveloping an empty pub for commercial use
Why it takes time to obtain the Grant of Probate
Social Media: The unconscious privacy threat
Is your reputation being threatened?
Making a will after your spouse or partner has died
Interns celebrate completion of internship at solicitors
Selling your home in a flat market, some top tips
Claiming compensation for a serious road traffic accident
New Media and Communications Court list reflects surge in internet defamation claims by Laura Baglow
Has your personal information been shared without your permission?
Planning your escape to the country, what you need to consider – part 2
Government consultation on new national model for shared ownership
Choosing a partnership structure
Planning for what happens when you die by Deborah Adams
Changes to legislation could offer protection for tenants in the private rental sector
Move to the country - Part One
The risks of DIY probate
Will your septic tank still be legal in January?
The death knell for ‘kiss and tell’?
Making a will when you retire
Selling your property at auction
Not looking so good - your guide to compensation for botched non-surgical cosmetic procedures
New threshold of seriousness in defamation proceedings
Legal considerations when building a granny annex
Choosing the right person for your power of attorney
Formal Interviews - Do you need legal representation?
Privacy rights and aerial images
Trustees’ duty to give information to beneficiaries
Five problems with a leasehold property
Taking your first commercial lease
Is your organisation protected from employee social media legal risk?
Have you been targeted by negative social media posts?
Farmers be alert when being inspected
Help for House Sellers?
Don’t let your digital assets end up in a digital grave
Valuing an estate for probate
Development proposals and your local authority search
What can you do if your child is injured in a serious accident
NetRights welcomes new protection for social media users
SHOULD I GET A LAWYER FOR A SPEEDING OFFENCE?
Supreme Court recognises that social media is a “casual medium” in libel battle
Choosing the best conveyancer who is right for you
Making a will after a second or subsequent marriage
Option or promotion agreement – which is best for landowners?
Anonymous pub and restaurant online reviews leave a bad taste
Have you had an accident involving a horse?
Help to Buy – beware of some cracks in the structure
Understanding Lasting Powers of Attorney
Changes to Energy Performance Certificate for Landlords
Had a cycling accident? Your route to obtaining compensation
New year, new home: tips to sell your home in the New Year
Tax Planning for your inheritance
Hearing loss: when your employer may be liable
Buying a home for your retirement, five things you need to consider
Farmers plan to diversify after Brexit
Ministers press ahead with probate fee shake-up - reports BBC News
Botched dental treatment? You may be entitled to compensation
Why a Health and Welfare Power of Attorney is a good idea
Will the new charge on building developments in Cornwall affect you?
Energy Performance Certificates – Do They Matter?
HMRC Challenging Stamp Duty Land Tax Payments
Ben Mitchell qualifies as a solicitor
The potential implications of Brexit on employment law
Appointing a guardian for your children
Houses in multiple occupation – new rules from October 2018
New Agriculture Bill published
Will Brexit affect my pension?
Dreaming of a holiday home? Sort out the legals before putting your feet up
Lasting Power of Attorney by Deborah Adams
Settled status after Brexit by Alexis Hager
How to choose an executor to administer your estate when you die
How overage agreements can boost profits from your land
Top tips for first-time buyers
How Could Brexit Affect My Farm?
Wills & Succession in Spain by Deborah Adams
Brexit – an international and local view by Alexis Hager, Litigation
Capital gains tax - important facts for non-residents of the UK
Buying a home: the importance of making sure the seller is entitled to sell
Changing a will after someone has died: it is possible and it could save you money
Your responsibilities when you have people working in your home
Sad passing of Battle of Britain pilot who served with Parnall family member
Considerations when buying a heritage property
Disciplinary proceedings at work: guide for employers
Employers should have a disciplinary process in place, but just following this may not be enough to avoid falling foul of the law and exposing yourself to the risk of an employment tribunal claim.