If you are buying a commercial property, JMS Solicitors can actively lift the burden of dealing with legal issues involved. Whether you own a business or are planning to set up a new business in the future, you can rely on our proactive approach, efficiency and great customer service.
We also offer the best possible advice and guidance throughout the matter. Furthermore we can negotiate terms of any new contract or leases on your behalf to get the best possible result to suit you.
Our services include negotiating new leases, lease options, re-newing leases and ending leases, assignments of leases, rent reviews and break clauses and sale and purchases of businesses and commercial EPCs.
If you are looking to buy, lease or sell a premises our prices are very competitive and can start from as little as £750 +VAT. Call to discuss your requirements on Freephone 0800 781 7057
JMS Solicitors will ensure that:
1.the title is good and can be passed on to you by the seller
2.contractual terms are negotiated and obtained and favour you
3.searches are carried out and check for any problems with the property
4.correspond with your lenders
If you are selling a commercial property, JMS will:
1.prepare a sales contract
2.answer any queries from the buyer’s legal team
3.negotiate and reach a binding agreement
4.complete and secure money on your behalf
If you are entering in to a commercial property lease, JMS will:
1.check the terms of the commercial property lease
2.negotiate the terms to minimise your costs or risk as a tenant
Most leases of commercial buildings give the tenant the right to sell the lease but this right is usually conditional upon having the consent of the landlord. In most cases the landlord has to give consent unless it would be unreasonable not to do so. This means that there are two distinct documents required to effect an assignment of a lease. JMS will complete these on your behalf:
1.the 'Assignment' - this is the document which passes ownership of the lease from the seller to the buyer
2.the 'Licence to Assign' - this is the document whereby the landlord gives consent to the Assignment
Selling the lease, referred to as ‘assigning the lease’ is different to subletting. Assigning a lease means you transfer the existing lease, whereas subletting means that a new lease is granted out of the head lease. If you are entering into a lease agreement, JMS will advise what type of lease you are being offered. JMS will also deal with issues after completion, on your behalf, such as registering the property with land registry (with leases where the lease is 7 years or more)
Whether a landlord or a tenant, disputes about commercial leases may affect your investment or livelihood. You should take legal advice as early as possible. JMS will be able to give landlords quick and cost-effective advice on such matters as what to do if your tenant:
1.gets behind with his rent
2.fails to do repairs
3.breaks the terms of their lease
We use a fixed fee system. When you contact us for a quotation you can also rest assured that the fee we quote to you is competitive, and more importantly, is the fee you will actually pay!
If you are a landlord or a tenant, JMS will be able to advise and the recommend the best course of action for an early resolution. For a consultation call us today on Freephone 0800 781 7057.
Commercial property includes shops, offices and factories as well as heavy an light industrial units. It also covers many properties that are not specifically houses or flats that are used for residential purposes only.
All these types of commercial property can be let on leases.
A lease is an agreement whereby an estate in land or property is created for a finite period. Due to the potential complexities of some leases it is advisable to seek professional legal advice before signing a lease or you may fall foul if ill-advised or you are simply unaware of potential problems.
Leases have, over time, become longer and more complex with the inclusion of convenants, conditions, provisos and rights in an attempt to cover every possible eventuality.
There is no universal or standard lease that covers all and therefore each lease must be closely scrutinized and amended accordingly.
When a new commercial lease is proposed, the lessor’s (person granting a lease on a property) solicitor will draft a lease and send the draft to the lessee’s (person who the lease is being granted to/tenant) solicitor. The draft lease will pass to and from each solicitor with amendments made in favour of their clients until such time when both parties are in unanimous agreement of alls parts of the lease. If the lease is to be expedited quickly it may be more practical for all involved to sit around a table and finalise the lease details.
Many commercial leases where not registered in their own right at Land Registry because the lease term was not more that 21 years in duration. However from 13 October 2003 this period was reduced to leases no more that 7 years.
If the lease is for less than 7 years it will still be an overriding interest and the superior title (the owner’s property title) should be consulted by the lessee’s solicitor. This will show covenants already imposed on the superior titleholder and which should be reflected in the terms of the proposed lease. It will also highlight any conflicts between existing covenants in the title and those proposed in the new lease.
In most cases a property company or individual will own the freehold or superior title and will grant a commercial lease to an occupying lessee.
Some important parts of the lease to take particular note of are:
• Heading, date and parties
• Property description and plan
• Exceptions and reservations
• Rent
• Lessee’s covenant
• Lessor’s covenant
• Surety covenant
• Other provisions
• Break clause
• Attestation clause
This will state that the document is a lease, the date of the lease and the parties involved. It will name which party is meant by lessor and lessee for future reference and ease within the lease.
A full description of the property with all attaching rights is set out here. Scaled plans will avoid any discrepancy of boundaries, especially in cases of leases of offices within a large block. Also if the leasehold is to be registered, Land Registry will require a scale plan.
Demise to the property and rights of access will generally be listed in this area. The lessor may wish to repair the main structure of the building and collect a service charge for the work carried out. The right of access needs to be stated for situation where the offices are on the fifth floor, toilets are communal and on a different floor or there is remote car parking or storage areas. The three main areas of rights of access are:
• Rights of way, e.g. access to fire exits
• Rights for conducting media, e.g. electricity cables, data cables
• Jointly owned structures, e.g. party walls, roofs, sewers, car parking
A detailed lists of rights retained by the lessor. This will generally contain a clause for a right of re-entry by the lessor for purposes of inspections, to carry out repairs, carry out works for benefit of adjoining land or premises, absolute right for the lessor to develop adjoining
Rental details also know as ‘redendum’ will include rent review clauses, frequency of payment and payment dates and whether rent is paid in arrears or in advance.
Modern commercial leases have rent paid quarterly in advance and it will be subject to regular review. Other rents will be specified such as service or maintenance charges collected as rent.
Any rent-free periods or other inducements are generally stated in this section.
This is the list of obligations which the lessee must comply with. This will include a covenant to pay the rent and others such as changes in use, alterations to the property and repairing obligations.
Generally this will be a lot shorter than the lessee’s covenants and include at least one for ‘quiet enjoyment’ and the other for insurance. So long as all the lessee’s covenants are satisfied the lessor commits to allowing the lessee to enjoy peaceable and uninterrupted enjoyment of the premises. As it is now common practice for the lessor to insure the building the lessee is covenanted to reimburse the lessor for the insurance premium.
A commercial lease can refer to a surety or guarantor. These are synonymous and will be someone that has given a written undertaking to answer for payment of a debt or for the performance of an obligation. This section will outline precisely what is required for surety.
This may include where applicable a requirement by the lessee to pay VAT on the rent or costs such as professional charges.
A break clause is normally understood to mean a clause allowing either or both parties to the lease to break and end the lease term prematurely. Entitlement to serve a break clause may be triggered by reaching a specific date or dates and will be activated by giving of notice or it may come into operation upon the happening of a specific event such as redevelopment of the property.
This is at the end of the lease and demonstrates the proper execution of the lease as a deed. This can be done by signatures from the director and a secretary or by two of a company’s directors.