Business Property Lease For Landlords

Commercial Lease – Legal Advice – Lease Solicitors

A commercial lease is an agreement between a lessee and a commercial proprietor. The tenant is granted the right to utilise the premises for business purposes for a specified duration in return for a rent that has been mutually agreed upon. Additionally, the rights, duties, and obligations of the landlord and tenant are outlined in the lease.

Lease – Landlord

As a commercial landlord, you must establish appropriate commercial lease agreements for your establishment. These agreements should delineate tenant obligations and terms, safeguarding your investment. If required, they should incorporate irritancy clauses and notice to vacate provisions. All leases are negotiated in Scotland, and the terms of the lease will depend on your commercial objectives and the type of property in question, such as whether you are dealing with long-term leaseholds or short-term multiple occupancy premises.

At Complete Clarity, we can provide guidance on the necessary lease agreements, develop terms on your behalf, and evaluate and negotiate tenant objections.  In addition, we can negotiate any preliminary Heads of Terms before contract execution.

What distinguishes a residential lease from a commercial lease?

The primary distinction lies in the intended objective of the lease. A residential lease is executed when a lessee acquires a house or property for personal use, whereas commercial leases are utilised to lease premises for business purposes.

Legally, these leases are also regarded differently; commercial leases are typically regarded as agreements entered into by seasoned business professionals; consequently, tenants are afforded fewer statutory protections, and courts are less inclined to intervene when a lessee deems the terms of their lease to be unjust. It is anticipated that parties entering into a residential lease have a lesser ability to negotiate the provisions of their contract than those entering into a commercial lease.  

What Expenses Are Typically Associated With A Commercial Lease?

Generally, commercial leases address the following:

• The property classification that is being leased
• The physical location of the property
• The duration of the tenancy (i.e., its term) and whether it is for a fixed period or will be renewed at regular intervals.
• The variety of enterprises permitted to function within the premises
• Leasehold enhancement ownership
• Preparations regarding the security deposit

The potential topics of discussion may vary depending on the specific lease agreement:

• Provisions for lease renewal
• Improvements and sponsoring incentives for signing
• Revisions made by tenants
• Regulations about the subleasing of buildings
• How much notice must be given for termination of the lease
• Made-up insurance arrangements

A Schedule of Conditions may be obtained

An instrument that can be utilised to determine whether a tenant is responsible for necessary repairs is a Schedule of Conditions. A Schedule of Conditions is an essential component of the commercial lease procedure, in which the condition of a property is documented using an exhaustive and detailed survey accompanied by photographic evidence before the execution of a commercial lease agreement. Typically, the inclusion of the Schedule of Conditions is supplemented by a clause in the lease stipulating that the lessee will leave the property in the exact condition as documented in the schedule, without any improvement or deterioration, and that no portion of the improvement shall be the tenant’s responsibility. This is crucial when the lessee is agreeing to a comprehensive lease that includes repairs and insurance.

A Schedule of Condition and a Schedule of Dilapidations are notably different. The latter is typically generated by the lessor after the lease agreement, as they have an interest in verifying the property’s condition.

Entities Enclosing the Lease Agreement?

The lessor and lessee constitute the parties. The lessee is the tenant who rents the property from the lessor, who is the proprietor and property owner.

Expert Commercial Property Solicitors Scotland – Lawyers in Glasgow – Expert Advice

Whatever the nature of your business, speak to one of the specialist commercial property solicitors in Glasgow for expert guidance on all matters concerning commercial leases.

We act for many local landlords and tenants. Our solicitors will help you negotiate the best possible terms for your lease and allow you to concentrate on growing your business.