Commercial leases can be complex. It’s important you fully understand the rights and obligations that they create in order to avoid unwelcome consequences. Taking legal advice on the drafting, negotiation, extension or termination of a lease can prevent disputes or litigation.
In Scotland, leases are governed mainly by the terms of the lease unlike in England, where dedicated Landlord and Tenant legislation exists.
When drafting or negotiating a commercial lease, it’s important to ensure you protect your own best interests. There are many issues to take into account including:
Price – Obviously, you do not want to pay more than is necessary to rent the premises.
Length of term – In the current climate, shorter term may be preferable. On the other hand, if the location is a prime one, it may be wise to take on a longer lease.
Alterations and repairs – Landlords may seek to limit the type and scope of alterations tenants can make. Landlords may also wish to pass the obligation to repair the premises onto the tenant. A carefully drafted lease will make sure each party knows where they stand in relation to repairing and altering the premises.
Use of the premises – The Landlord may wish to limit the purposes for which the premises are used. The tenant, understandably, will wish to have as wide a scope as is necessary, and one which allows him a wide choice of assignees should he have to sub-let or assign the lease.
We can advise on:
• Drafting, negotiating and assignation of leases
• Business sales which include commercial property aspects
• Lease extensions and renewals of existing leases
• Negotiating and advising on termination of leases
• Advice and negotiation on rent reviews
We advise our clients on commercial leases throughout Scotland.