How to protect your business when leasing a commercial property
Leasing a commercial property is a large investment for any business, yet many business owners still do not seek the right advice before committing to a lease.The financial investment when signing a commercial lease can run to hundreds of thousands of pounds over the length of the lease. Despite this, our commercial property solicitors at Farnworth Rose still speak to people who have signed a commercial lease without seeking expert legal advice.
Important checks before signing a commercial lease
Entering into a commercial lease without the right legal advice can be fraught with danger, especially for new businesses.Here, the experienced commercial team at Farnworth Rose provide advice on the important checks to make before leasing a commercial property.
Make sure you know what you can use the premises for
Before entering into a commercial lease, make sure you know exactly what you can use the premises for. You cannot always rely on what it says in the lease, make sure you have planning permission to run the type of business you want from your location.It is also important to consider whether the type of business you run may change over time. To avoid renegotiating the lease, you can build any such changes into the lease agreement.
Consider the length of the lease
The length of the lease is one of the most important considerations for any business owner.Especially if you are entering into your first commercial lease, you should be wary of signing for a number of years. A 10 or 20-year lease is a large risk, especially for new businesses.If for any reason you need to leave the premises, the last thing you want is to be stuck paying for a property that you cannot use.An experienced solicitor will work with you to negotiate a length of lease that suits the needs of your business.
Consider adding break clauses
Many commercial leases will contain break clauses which allow the tenant or the landlord to end the lease early. This can offer protection if your circumstances change and you need to leave the premises.However, it is vital that you have an experienced solicitor review any break clauses before you agree to them. In some cases, landlords will add pre-conditions to break clauses which can make it difficult to exercise any break clauses.An experienced solicitor will ensure that any break clauses added to a lease are in your best interests.
Always seek early advice from an experienced commercial solicitor
With any commercial lease, you should seek advice from a specialist commercial property solicitor as soon as possible.With an expert on your side, you can be confident that any lease you enter into protects the needs of your business.Our Director at Farnworth Rose, Richard Farnworth, has over 35 years’ legal experience and has advised business across the Lancashire and the North West on their commercial leases.
Speak to an experienced solicitor at Farnworth Rose today
For a consultation with an experienced solicitor at Farnworth Rose, call us today on 01282 695 400.Or, if you’d prefer to arrange a call back with a member of our team, you can complete our online contact form here.