Embarking on the journey of leasing a commercial property for your business is an exciting step! We understand that the process might seem a bit overwhelming, especially if it’s your first time. But don’t worry – we’re here to help! Let’s walk through the process together and make it a breeze.

Instruct a solicitor

First things first – bring in a commercial property solicitor to be your legal guide. They will help navigate you through the legal process, review the lease documentation and assist with negotiations.

Offer and negotiation

Once you’ve set your sights on the perfect spot for your business it’s time to express your interest and submit an offer to the landlord or their agent. The offer should outline the proposed lease terms, including rent, lease duration, break clauses, and any special conditions. Some negotiation may follow until both parties reach an agreement.

Heads of Terms

Once the key lease terms are agreed upon, the landlord or their agent will prepare a document called the “Heads of Terms” or “Agreed Terms.” This document summarises the agreed-upon terms and acts as a reference point for drafting the formal lease. Review it carefully and ensure it accurately reflects your understanding.

Due diligence and legal checks

Your solicitor will conduct legal checks on the property, which may include reviewing the title deeds, local authority searches, environmental assessments, and any other relevant investigations. They will also verify that the property has the necessary planning permissions for your intended use.

Lease drafting and review

Once the due diligence is complete, the landlord’s solicitor will prepare the draft lease. Your solicitor will carefully review the lease, ensuring it accurately reflects the agreed terms and contains fair provisions. They may propose amendments or negotiate specific clauses.

Financial arrangements

At this stage, you may be required to provide a deposit or provide evidence of financial stability to the landlord or their agent. Some landlords may request a rent deposit, which is typically a few months’ worth of rent, held as security against non-payment or breaches of the lease.

Finalising the lease

After the negotiation process, both parties will reach a final version of the lease. Your solicitor will arrange a meeting for you to sign the lease in the presence of a witness. Ensure you carefully read and understand all the clauses before signing. Your solicitor will retain a copy of the signed lease for future reference.

Completion and possession

On the agreed-upon lease start date, you will gain possession of the commercial property. Ensure you have complied with any pre-conditions stated in the lease, such as providing insurance certificates or undertaking necessary repairs.

Ongoing lease obligations

Throughout the tenancy, you will have various responsibilities, including paying rent, maintaining the property, and complying with lease obligations such as insurance, repairs, and health and safety regulations. It’s important to keep track of important dates, such as rent reviews, break clause deadlines, and lease renewal options.