Whether setting up a business or shifting an existing business to new premises, arranging the commercial lease will be one of the main things on the to do list. However, before a lessee signs on the dotted line, there are several key questions that they should ask themselves. Posing these questions may raise issues that will need the guidance of a commercial lease solicitor in London to navigate through.
In fact acquiring the services of a commercial lease solicitor in London, such as West End firm Saracens Solicitors, whether leasing a commercial property for the first time or the tenth time, will undoubtedly make the process go more smoothly for all parties involved.
Let’s now take a look at those key questions, which can help prevent a business owner getting involved in a commercial lease that doesn’t meet all of their needs.
How affordable is the rent?
When agreeing on the rental costs, consider VAT. If the business is not VAT registered, then an extra 20% in rent could significantly affect how affordable the rent is. It is also worth thinking about when payments will need to be made, often rent is paid quarterly.
Does the property meet the usage demands of the business?
A commercial lease will stipulate for what purpose the property will be used. Before signing a commercial lease, it is the responsibility of the lessee to check whether the planning permissions of the building match the business’s needs.
What happens if the lessee wants to cancel the lease?
The length of a commercial lease varies considerably. If a business undergoes a change in circumstances and wants to cancel the lease, it is important to know whether the lease has a break clause. Including a break clause in a lease gives the lessee greater flexibility.
Who should take responsibility for repairs and buildings insurance?
While the landlord will usually take responsibility for buildings insurance, the situation is less clear-cut with repairs. Landlords often expect tenants to bear some of the costs. This should all be clarified in the lease.
A commercial lease solicitor in London can ensure that the answers to all of these questions are addressed in the lease, leaving no or little room for ambiguity.