Commercial Lease Negotiation Solicitors

Commercial leases are complex legal documents that can significantly impact your business operations and financial commitments for many years. Whether you're a tenant seeking favorable terms or a landlord protecting your investment, expert legal guidance is essential to negotiate agreements that protect your interests and avoid costly disputes.

What Our Commercial Lease Solicitors Can Help With

• New Lease Negotiations: Drafting and negotiating commercial lease terms for tenants and landlords
• Lease Renewals: Security of tenure and lease renewal negotiations under the Landlord and Tenant Act
• Rent Reviews: Upward-only, open market and turnover rent review negotiations
• Assignment and Subletting: Transferring lease interests and subletting arrangements
• Break Clauses: Negotiating and exercising tenant and landlord break options
• Dilapidations: Terminal and interim dilapidations claims and negotiations
• Service Charge Disputes: Challenging unreasonable service charges and management fees
• Lease Variations: Modifying existing lease terms and conditions

Key Commercial Lease Terms

Rent and Financial Terms:

• Base Rent: Annual rental amount and payment frequency
• Rent Reviews: Timing, methodology and assumptions
• Service Charges: Landlord's expenses and tenant's contribution
• Insurance: Buildings insurance and tenant's obligations
• Rates and Utilities: Business rates and utilities responsibilities
• Deposit: Rent deposit or guarantee requirements

Operational Terms:

• Permitted Use: Authorized business activities and use classes
• Alterations: Rights to modify and improve the premises
• Assignment: Rights to transfer the lease to third parties
• Subletting: Rights to sublet part or all of the premises
• Break Clauses: Early termination rights and conditions
• Repair Obligations: Maintenance and repair responsibilities

Landlord vs Tenant Considerations

For Tenants

• Rent Certainty: Predictable rental costs and review mechanisms
• Flexibility: Break clauses, assignment rights and use flexibility
• Repair Limitations: Avoiding full repairing and insuring obligations
• Service Charge Control: Caps on service charges and management fees
• Security of Tenure: Protection under Landlord and Tenant Act 1954

For Landlords

• Income Security: Upward-only rent reviews and strong covenants
• Property Protection: Full repairing and insuring obligations
• Control Maintenance: User restrictions and alienation controls
• Investment Value: Terms that enhance property value and marketability
• Risk Management: Appropriate guarantees and deposits

Commercial Lease Types

Full Repairing and Insuring (FRI):

• Tenant responsible for all repairs and insurance
• Landlord receives clear rental income
• Common for single-let properties

Internal Repairing (IR):

• Tenant maintains interior only
• Landlord retains external and structural obligations
• Typical for multi-let buildings

Turnover Leases:

• Rent based on percentage of tenant's turnover
• Common in retail and hospitality sectors
• Often includes base rent plus turnover element

Common Commercial Lease Disputes

• Rent Review Disagreements: Valuation disputes and review assumptions
• Service Charge Challenges: Unreasonable charges and poor management
• Dilapidations Claims: End-of-lease repair obligations and costs
• Break Clause Conditions: Compliance with break notice requirements
• User Restrictions: Disputes over permitted use and planning consent
• Assignment Refusals: Unreasonable withholding of landlord's consent

Commercial Lease Costs

Legal Fees:

• New lease negotiation: £1,500-£5,000
• Lease renewal: £1,000-£3,000
• Assignment/subletting: £1,000-£2,500
• Rent review: £1,000-£3,000

Additional Costs:

• Landlord's legal costs (often tenant's responsibility)
• Surveyor fees for rent reviews: £1,000-£5,000
• Stamp Duty Land Tax on lease premiums
• Land Registry registration fees

Why Choose SolicitorConnect for Commercial Leases

• Lease Specialists: Solicitors focusing exclusively on commercial lease law
• Dual Representation: Experience acting for both landlords and tenants
• Sector Knowledge: Understanding of different business sectors and their needs
• Negotiation Skills: Proven track record in achieving favorable lease terms
• Dispute Resolution: Alternative dispute resolution and litigation experience
• Commercial Awareness: Understanding of business implications of lease terms

Commercial lease terms can significantly impact your business for many years. Professional legal advice ensures you understand all obligations and negotiate terms that support your business objectives.

This information is for general guidance only and does not constitute legal advice. For specific legal advice tailored to your situation, please consult with a qualified solicitor.