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Commercial leases for tenants
Commercial lease solicitors for tenants
Business premises give you a place to trade, but a lease can also commit you to significant costs for many years. We make sure you understand the obligations you are taking on and negotiate terms that suit your business.
Fair terms for your business premises
A lease can commit you to significant costs for years. These are the terms we focus on for tenants.
Take advice before you commit
As a tenant, you should take advice early, ideally before heads of terms are agreed, so the lease suits your business. In particular, think about the repair and payment obligations you are accepting and the dilapidations you may face when the lease ends.
Many offices, shops and other premises are let for five, ten or fifteen years or more. Most are full repairing and insuring leases. This means that during the lease you are responsible for repairing and maintaining the premises and for the landlord’s insurance costs, as well as rent, rates, utilities and any service charge. It makes sense to approach a full repairing lease with the same care as buying a property.
What we negotiate for you
- RepairLimiting your obligations, for example by reference to a schedule of condition.
- Service chargeClarity on what can be charged, with caps or exclusions where possible.
- Rent reviewFair review terms and dates that fit your plans.
- Break optionsThe right to leave early, with conditions you can realistically meet.
- Assignation and sub-lettingFlexibility to pass on the lease or share space if your needs change.
- IncentivesRent-free periods or contributions to fitting-out works, properly recorded.
- GuaranteesLimiting the scope and length of any personal guarantee.
At the start of the lease we also handle LBTT and registration. We can prepare supporting documents such as rent deposit agreements and licences for works, and we can help with rent review disputes, lease extensions or ending the lease later on.
Licences to occupy
A licence to occupy is a less formal arrangement than a lease. It gives non-exclusive use of space for a set period and is sometimes used for serviced offices, pop-up shops and shared buildings. It is used less often in Scotland than in England.
If you are offered a licence rather than a lease, we can review it and explain how it differs from a lease, including how easily it can be ended.
Problems during the lease
Landlords and tenants both have obligations under a lease, and a breach by either can lead to a dispute. Common problems include:
- Landlord repairsThe landlord failing to maintain shared parts or the structure, where that is their responsibility.
- Rent arrears and irritancyIf you fall behind with rent, the landlord may be able to end the lease by irritancy, but must first serve a warning notice by recorded delivery giving at least 14 days, or any longer period in the lease, to pay.
- Landlord’s hypothecFor unpaid rent, the landlord has a security over certain of your moveable goods in the premises, which matters most if your business becomes insolvent.
- DilapidationsClaims at the end of the lease for repairs the landlord says you should have carried out.
Our lease disputes team can help with negotiation, mediation and, if needed, court action.
At a glance
- Common terms
- Five, ten or fifteen years, often on full repairing and insuring terms
- Protection
- A schedule of condition can limit your repairing obligations
- LBTT
- Tenants of notifiable leases submit a review return every three years
- Flexibility
- Break options, assignation and sub-letting rights
Found premises, or been sent a draft lease? We will explain the obligations and negotiate fairer terms.
Book a free* consultation0141 471 9166*Free initial consultation of up to 30 minutes.How we help you take a lease
- Review heads of termsWe flag points to raise before the terms are fixed.
- Review the draft leaseWe explain the key obligations and risks in plain English.
- NegotiateWe agree changes with the landlord’s solicitor.
- Sign and settle inWe arrange signing, LBTT and registration, and diary key dates such as breaks and reviews.
Questions we are often asked
Do I need a solicitor to take on a commercial lease?
Yes. Commercial leases give tenants few statutory protections, so it is important to understand and negotiate the terms before signing.
What is a full repairing and insuring lease?
A lease where you, as tenant, are responsible for all repairs and the landlord’s insurance costs, even for problems that existed before you moved in, unless the lease limits this.
Can I leave before the lease ends?
Only if the lease has a break option, you assign or sub-let, or the landlord agrees to a renunciation. Break conditions must be followed exactly.
Will I need to give a personal guarantee?
Landlords often ask new businesses for one. We can try to limit its amount and length, or offer a rent deposit instead.
What are my LBTT obligations as a tenant?
If the lease is notifiable, you must submit an LBTT return and then review returns every three years, on assignation and when the lease ends.
Get in touch
Speak to a senior business solicitor
Every business matter is different, so we start by listening. Tell us what you are dealing with and we will give you clear, practical advice and an honest view of the likely cost.
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Your legal team
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Your matter is handled by experienced solicitors who know Scots business law and will explain your options in plain English.
Billy Smith
Director and Solicitor. Set up the firm in 2010 to deliver legal services better.
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Associate Director. Calm, composed and logical under pressure.
Ciara Young
Associate Director. Trained with the firm from 2019.
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Tell us about your matter and we will put you in touch with the right solicitor.