Commercial Property Frequently Asked Questions

Leases are hugely technical and something that can seem incongruous on first reading may have significant implications at law and those implications can be very expensive. Taking proper advice before you enter into your lease means you understand exactly what your liabilities are at the outset, hopefully alleviating any nasty surprises further down the line.

Generally speaking, up to six weeks. Much depends on the other parties and the speed of the search results. If you are desperate to get into occupation, please advise us at the time as there may be other options available to you.

Your responsibilities under a commercial lease depend entirely on the drafting of it. Generally though, you are liable for the repair and decoration of the property, and paying rates and utilities. Your responsibilities also include complying with all laws on fire safety, energy efficiency, contamination, asbestos management and anything prescribed by the local authority. We will be able to guide you on exactly what your lease requires you to do and what you are not permitted to do, alternatively you can view our Commercial Property Checklist for initial guidance.

You will likely need us to carry out conveyancing searches. There may also be SDLT (Stamp Duty Land Tax) implications of taking your lease, and potentially a Land Registry fee for its registration. We will be able to give you a clear breakdown of these costs once we have the property and lease details.

For the period that you are in occupation you are (subject to the terms of your lease) responsible for everything to do with that property, much in the same way as if you owned it. If you don’t know what the potential issues are, you cannot budget or prepare for them, or even decide to walk away before you sign any paperwork. We can also discuss with you whether your property can lawfully be used for what you need to use it for before you commit to paying rent for years at a time.

Stamp Duty Land Tax is payable on the acquisition of an interest in property, even where the interest is acquired for a short term under a lease. The tax due is calculated on the rent over the length of the term where this figure is over the threshold of £150,000 for commercial property. Generally speaking, the longer the term and the higher the rent, the more likely that SDLT will be payable. We will be able to prepare a proper calculation for you where necessary.

Leases over seven years are subject to compulsory registration at the Land Registry.

Probably the most asked question! Unfortunately, attempts to simplify such complex legal documents often lead to ambiguity and vagueness. What may seem straightforward now when it is fresh in your mind may not be clear in a few years time or to your successors in title. As a result, it is these leases that are often brought to the courts for interpretation, which is expensive and easily avoidable. Having concise drafting detailing exactly what the parties want means that everyone knows what is expected of them.

Yes, you do. Owning a long leasehold interest is still a lease and you will still have to comply with the lease terms. We will be able to clarify what these are and their implications.