07 Jun 22 by James Vowles
Signing a lease on the premises for your business is exciting but taking time to undertake due diligence is strongly recommended to avoid unexpected costs at lease end. Below are some key points that are worth considering.
Avoiding lease surprises for tenants
1. As well as the obvious clauses on rent, insurance and service charges, tenants need to be aware of the repairing obligation and reinstatement clauses in the lease.
2. To avoid surprises, a pre-acquisition survey should be undertaken to highlight the current condition of the property.
3. As part of the negotiation with the landlord, a potential tenant should review the repairing obligations and try to reduce their repairing liability.
4. Consent for alterations to the property should be obtained from the landlord before works are undertaken.
5. Reinstatement can be expensive and time consuming and works should be carefully considered and budgeted for.
6. Allow time for a Dilapidations Liability Assessment to be undertaken prior to the final year of the term and for the final exit strategy to be considered.
7. The terms of the lease should be appropriate to the type and age of the building and the length of the lease term.
Everything is negotiable before the lease is agreed, so seek professional advice before you sign on the dotted line!
Occupiers and tenants are naturally anxious to reduce or minimise costs on their commercial property. Rents, business rates and property costs make up a significant proportion of business overheads and we understand your need to manage those costs.
For landlords and property owners, achieving the best lease terms and rents on your commercial property remains a key concern, especially during the current changeable and uncertain market. Our team is based in the South West, with offices in Truro, Plymouth, Exeter and Bristol so we are well placed to help you with lease terms, rent reviews and rent concessions.