Commercial Lease Renewals

The rights and responsibilities of landlords and tenants are particularly important at the end of a lease. Their rights are also important at other times if either side is able to determine (or break) the lease, and wishes to do so.

If lease renewals are to be successful, it is important to:

• understand these issues
• know the market
• know the client’s business plans for the future
• be fully aware of the negotiating position of both sides

Recent changes in the law and moves for new leases to be more flexible are giving parties greater chance to debate the terms at lease renewal.

Planning and tactics at the outset can have a material affect on the ultimate outcome, so early advice from your solicitor and a professional surveyor is essential.

Hints and tips

A lease is a contract of occupation and the most important issues to be considered on renewal include:

• the length of lease or commitment
• whether or not there are rights of renewal
• upward or downward rent reviews
• responsibility for repairs
• service charges
• break clauses
• ability to assign or sublet

RDN surveyors are expert in negotiating a fair value

NEW - 2007 Commercial Lease Code

The new Code aims to promote fairness in commercial leases, being designed to help businesses avoid the pitfalls of lease agreements, and to ensure that landlords operate to an industry-agreed standard.

We are committed to follow this code wherever possible.

For further information see www.leasingbusinesspremises.co.uk