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Philip Astles

What is a Commercial Lease Agreement? Philip Astles, Managing Partner of Kidd Rapinet Slough, specialises in all aspects of Commercial Law. Here he explains a commonly asked question “What is a commercial lease agreement?� A commercial lease agreement is a contract between a landlord and a tenant, where the landlord gives the right to a tenant to occupy a property or building for an agreed period of time. Terms are covered in a commercial lease agreement stating the length of your lease, rental costs and basis in which this has to be paid. It will also state that you must ensure that the building or property is returned in the same condition in which it was let, when your lease ends. If you are renting the first floor of a building and the other floors have tenants, you will have shared areas such as corridors, stairs, parking area and gardens. There will be a service charge for these areas; it is likely that the charges will be equally shared between all the tenants.

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Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Main Kidd Rapinet Website

Philip Astles

What is a Commercial Lease Agreement? You can place a break clause in your commercial lease agreement. If you have a 10 year lease but you’re unsure to whether you might wish to end the lease sooner, if agreeable between yourself and the landlord, a break clause will give you an option to end your lease after 5 years on the condition that you give 6 months notice. Without this break clause in place you remain legally bound to complete your 10 year lease. Another option to exit the situation is to find alternative tenants to replace you, and then you can transfer the lease over to them. This is called sub letting. You would still be the tenant and responsible for paying the rent, but you have your own tenants that pay you rent so you can then pay the landlord. This option can continue until the end of your commercial lease agreement.

Visit My Blog www.kiddrapinet-slough.co.uk Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Main Kidd Rapinet Website

Philip Astles

What is a Commercial Lease Agreement? Included in the lease are specifications to what the property or building can be used for. If it is to be used for manufacturing you will have a right to do light industrial manufacturing work. You should also consider that in a ten year lease, you will have a rent review after 5 years. If other surrounding buildings have decreased in rent, yours will stay the same. But if they have increased, your rent will also rise to the going rate. It is essential you contact a solicitor before you approve the heads of terms as the solicitor can ensure you receive the best deals regarding rent free periods, rent reviews and get the best building in that area. They can place various provisions into the lease giving you as much protection and clarity as possible and avoid any problems that could arise. If you are a would-be tenant, it is essential that proper legal advice is sought and a suitably experienced solicitor checks out any commercial lease agreement before you commit to it. Likewise, if you would like advice on preparing a commercial legal agreement, please contact me: Phil Astles on 01753 532 541 or arrange a call back Slough office contact details: Kidd Rapinet Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West

What is a Commercial Lease Agreement?  

Philip Astles, Managing Partner of Kidd Rapinet Slough, specialises in all aspects of Commercial Law. Here he explains a commonly asked ques...

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