A commercial lease is a legal agreement that gives a business the right to occupy and use commercial premises for an agreed period and subject to specified terms.
The lease will normally set out matters such as rent, length of the lease, permitted use, repair obligations and the rights and responsibilities of the landlord and tenant.

It is advisable to obtain legal advice before entering into a commercial lease.
Commercial leases can contain detailed and complex provisions that may create significant obligations for your business.
A solicitor can review the lease, explain the terms and identify potential legal issues.

1. Important matters to consider can include:

• Rent and rent review provisions

• Length of the lease

• Permitted use

• Repair obligations

• Service charges

• Insurance

• Assignment and subletting

• Break clauses

• Renewal rights

• Alteration restrictions

• Termination provisions

There is no standard length for every commercial lease.
The term will depend on what has been agreed between the landlord and tenant and the nature of the property and business.
Your solicitor can advise you on the legal implications of the proposed lease term.

A rent review is a contractual mechanism that allows the rent payable under a commercial lease to be reconsidered at specified intervals.
The lease should set out when a review takes place and how the revised rent is determined.

A break clause can give the landlord, tenant or both parties the right to terminate the lease early, subject to the conditions set out in the lease.
Break clauses can contain strict requirements, so it is important to understand exactly how and when they can be exercised.

Permitted use refers to the activities that the tenant is allowed to carry out at the premises.
For example, a lease may restrict the premises to use as an office, retail unit, restaurant or other specified business activity.
You should ensure that the permitted use is suitable for your intended business activities.

Changing the use of commercial premises may require the landlord’s consent and potentially other legal or planning considerations.
The lease may contain restrictions on changes of use.
Your solicitor can review the lease and advise you on the relevant legal requirements.

The responsibility for repairs depends on the terms of the lease.
Some leases place significant repair obligations on the tenant, while others divide responsibilities between the landlord and tenant.
It is important to understand these obligations before signing the lease.

A service charge is an amount that a tenant may be required to pay towards the costs of maintaining and managing shared areas or services connected with the property.
The lease should explain how the service charge is calculated and what costs may be recovered from the tenant.

Some commercial leases allow assignment, but this may be subject to conditions and the landlord’s consent.
Your solicitor can review the assignment provisions and advise you on the relevant requirements.

Whether you can sublet the premises will depend on the terms of the lease.
Some leases permit subletting subject to conditions or the landlord’s consent, while others may restrict it.
You should obtain legal advice before granting a sublease.

A personal guarantee may require an individual, such as a company director, to personally guarantee certain obligations of the tenant.
This can create personal financial liability if the tenant fails to meet its obligations.
You should obtain legal advice before agreeing to provide a personal guarantee.

A landlord may require a tenant to provide a rent deposit as security for the tenant’s obligations under the lease.
The terms of the rent deposit should be documented and should explain matters such as how the deposit is held and when it may be returned.

Security of tenure refers to certain legal rights that may allow a qualifying commercial tenant to remain in occupation or seek a new lease when the contractual term ends.
Whether these rights apply will depend on the lease and the circumstances of the tenancy.

Yes. Commercial lease terms can often be negotiated before the lease is completed.
The extent of negotiation will depend on the landlord, tenant, property and circumstances.
MYM Solicitors can advise you on the legal terms and assist with negotiations where appropriate.

The ability to alter commercial premises will depend on the lease.
Some alterations may require the landlord’s consent and could also require other permissions.
Your solicitor can review the relevant provisions and advise you before any works are undertaken.

The options available when a lease approaches its end depend on the terms of the lease and the applicable legal provisions.
You may need to consider renewal, termination, surrender or other arrangements.
It is advisable to seek legal advice before the lease expires.

There is no fixed timeframe.
The process can depend on the complexity of the lease, negotiations, property documentation, searches, landlord requirements and whether additional documents or consents are required.

Yes. MYM Solicitors can assist landlords and tenants with the legal aspects of commercial leases, including reviewing lease terms, advising on obligations, negotiating provisions, dealing with related documentation and completing the transaction.
Our commercial property team can provide legal advice tailored to your business and the premises involved.