What Do YOU Want To Know About Your Commercial Lease?
Reasons to choose Wilson Browne
Partner, Tom Warrender, ran another of his infamous polls asking “If you could have a refresher on your commercial property lease, what one point would you most like a review of and further advice on?”
The results showed 33% felt a review of the security of tenure (or not!) would be beneficial, whereas 67% could do with an update on rent review clauses. Below we set out a brief overview of both Security of Tenure and Rent Review, but also Break Clauses which were mentioned in the poll although surprisingly nobody voted for the need for further advice on that point.
Security of Tenure
Security of Tenure concerns business tenancies and is essentially a statutory right which allows tenants to apply for a new tenancy on similar terms as the existing tenancy when it expires.
So why it is important that both landlords and tenants know about Security of Tenure?
Landlords may not know about this statutory right and unintentionally grant a tenancy to the tenant with security of tenure. It is possible to contract out of the Act but there are strict procedures that must be followed and if done incorrectly, might mean that the tenant is given security of tenure at the end of the contractual term and a right to a new lease. If the landlord is unaware, he or she may grant a tenancy to a tenant longer than the landlord had intended.
Equally, Tenants may also be unaware of their rights and could be forced out by a landlord at the end of the contractual term, having given up security of tenure without being fully aware of the ramifications. The tenant may have built up goodwill and which may be lost as a consequence of being asked vacate. The tenant may be entitled to compensation in some circumstances.
A recent case relating to this is outlined here
Break Clauses
Some of our recent articles on Break Clauses include
Break Condition requiring vacant possession was satisfied
More break clause complications for tenants
Rent Review
A rent review clause allows a review to the rent payable under a lease. We regularly update on cases relating to this subject. Read more here
Commercial Property is full of buzzwords and phrases – our A-Z guide is a great quick reference guide. Click here to download
Whether you need assistance reviewing and interpreting an existing lease or whether you are in the process of negotiating a new one and require legal advice, our Legal 500 recognised Commercial Property Team here at Wilson Browne Solicitors are All The Help You Need.
Posted:
Tom Warrender
Partner
Tom is a Partner and Commercial Property Solicitor with a wealth of experience acting for clients both locally and nationally since 2005.