A commercial lease agreement is the contract document setting out terms of rental of a business property. It will typically contain a description of the property, the rent and service charges payable, conditions for rent review, any options to end the lease early, the term of the lease and the rights and obligations of both the landlord and tenant.
A commercial lease is the formal agreement between the landlord of a property and a business who wishes to rent the property for commercial purposes.
It is not essential for a commercial lease to be notarised. However it is always a good idea to go through what can be a lengthy and complicated document with a solicitor. This will help ensure that all eventualities are covered and that everyone understands the terms and conditions.
The occupier of a commercial premises is liable for business rates. A commercial lease may include an agreement that the tenant is to pay the sum to the landlord who will then settle the liability. However despite this, the bill will remain in the name of the occupier and the local authority will chase the occupier for any outstanding monies.
A landlord can only end a lease if the tenant fails to pay the rent or breaches another contract term. A tenant may end a lease under the terms of the break clause in the lease agreement, assuming there is one. Notice must be given in the accordance with the agreement. In some instances subletting or assignment is possible.
A commercial lease can be assigned to a third party, however the landlord is likely to require guarantees from the original tenant, eg. guaranteeing the rent payments. The original agreement should contain details of when a landlord will consent to assignment of the lease. The new lease may not grant more rights than have been given in the head lease.
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