Landlord and Tenant
Pollock Fairbridge Schiavone Solicitors can advise you on all matters concerning your proposed or existing lease of a commercial property. Whether you are a Landlord or a Tenant, it is important that any lease, licence to occupy or occupancy agreement is completed correctly and both sides understand their respective rights and obligations under the relevant contract.
Commercial leases can vary in duration, from a couple of years to 20 years or more. The majority of leases are either FRI (full repairing and insuring) or IRI (internal repairing and insuring). Whether FRI or IRI, the tenant is essentially taking over responsibility for the property from the Landlord and would be liable to pay all insurance costs incurred by the landlord, as well as the rent, rates, utilities and any service (or common) charges. With the foregoing in mind, a tenant should treat the lease transaction as they would a purchase and undertake much of the same legal due diligence.
As well as the lease itself, lease transactions may also involve ancillary documentation such as an Agreement for Lease (an offer to enter into the lease), a Licence for Works Agreement (detailing the tenant’s proposed fit-out works and how they’ll be completed), a Rent Deposit (a sum held in security of the tenant’s payment obligation) and/or a third-party Guarantee (usually from an individual or an associated company).
Additional documentation may also be required throughout the duration, at rent review for example, or the tenant may wish to sublet the property and the Landlord’s consent is required. Legal advice should be sought before entering into any of these ancillary or additional documents.