Landlords get wise to what's in your commercial lease

It seems that barely a day goes past without more news of the economic downturn. With high fuel prices and the Credit Crunch there’s no doubt that many businesses are feeling the pinch and this has a knock on effect for Landlords.

Unfortunately rent is often low on a struggling tenant’s list of priorities. If it is a choice between paying for stock which may be sold at a profit and paying a landlord, many tenants will opt to gamble on stock in the hope that it will sell. With this in mind, it is more important than ever for Landlords to ensure that their leases are well drafted and that they are fully aware of their terms.

If you are granting a new lease, our specialist commercial property team can help you through the potential minefield and ensure you have a lease which meets your requirements.

Even if you have already completed your lease, we can help. Simply call us and we can arrange a free lease review, providing you with a list of the key dates relating to your lease, including:

• Rent Payment Dates;
• Rent Reviews;
• Expiry Dates;
• Break Clauses; and
• Landlord and Tenant Act Timetables.
  

Many tenants are approaching landlords with a view to renegotiating or restructuring their leases (for example easing cashflow by agreeing monthly rent payments instead of quarterly payments). However, if a compromise is agreed, you need ensure it is properly recorded. Amending the terms of an existing lease can be deemed a surrender and re-grant of that lease, potentially giving a tenant rights you would not envisage or releasing guarantors from their liability! Our team can help you avoid these traps.

Finally, it is not all doom and gloom! The Crunch is making many businesses consider the merits of a commercial lease rather than freehold ownership and the letting market remains relatively buoyant. Even if a tenant is in trouble a good commercial agent may be able to turn the situation to your advantage, perhaps negotiating a fee for accepting a surrender from a struggling tenant whilst negotiating a further lease to a more economically viable tenant!

If you are interested in taking advantage of the free review offer or discussing any of your commercial property matters, please call a member of our specialist commercial property team who will be happy to help.