Commercial Property

The Landlord and Tenant Act 1954 gives business tenants in England and Wales a statutory right to renew their lease at the end of the contractual term — known as security of tenure. Unless your lease expressly excludes this right through a specific statutory procedure carried out before the lease was signed, you have a protected right to remain in the premises and negotiate a new tenancy. Many landlords routinely seek to exclude security of tenure ("contracting out"). Before agreeing to contract out, you should understand what protection you are giving up.

A break clause gives one or both parties the right to terminate the lease early. Most commercial break clauses require the tenant to satisfy specific conditions — serving notice in the precise form and within the correct window, paying all rent due with no arrears, giving vacant possession of the entire premises. Courts apply a strict compliance standard: a break notice served one day late, a minor rent arrear, or a single item left on the premises have all been held sufficient to invalidate a break. Before signing a lease with a break clause, ensure you understand the conditions and have a plan to satisfy them.

Dilapidations are the works a tenant is required to carry out at the end of a lease to return the premises to the condition required by the lease — typically the condition at the start, fair wear and tear excepted, with any alterations reinstated. Dilapidations claims by commercial landlords at lease end are one of the most common sources of commercial property disputes. The most effective protection is a Schedule of Condition negotiated and agreed at lease commencement, limiting your repairing obligation to maintaining the premises no worse than they were at the start.

On a commercial lease: solicitor's legal fees; stamp duty land tax on the lease premium and/or rent if the net present value of the rent exceeds the nil-rate threshold; search fees; Land Registry registration fees; and any landlord's legal costs if the lease requires you to pay them. On a commercial purchase: solicitor's legal fees; stamp duty land tax (commercial SDLT rates apply — nil rate on the first £150,000, then increasing rates); search fees; and Land Registry registration fees. We provide a fixed fee quote before you instruct us, with all anticipated disbursements itemised.

Yes. We advise both commercial landlords and commercial tenants, and we identify any conflict of interest before accepting an instruction. For landlords: granting new leases; pursuing rent arrears; serving break notices; dealing with lease renewals under the 1954 Act; enforcing repairing obligations; and recovering possession. For tenants: reviewing and negotiating lease terms; advising on break clause exercise; responding to rent review; dealing with dilapidations claims; and pursuing or defending landlord and tenant disputes.

Commercial property searches are similar in structure to residential searches but scope varies depending on the property type, location, and intended use. The standard pack includes a local authority search, drainage and water search, and environmental search. Depending on the transaction, additional searches may include a planning search, highways search, and for development sites, ecological, utility, and ground investigation searches. On a commercial purchase, the buyer's solicitor also searches against the seller's title to confirm there are no registered charges or pending applications affecting the property.

Due diligence is the process of investigating everything that matters about a commercial property before committing to buy or lease it. On a purchase it covers: title (ownership, restrictions, rights); planning (what the property can lawfully be used for, consents granted, enforcement issues); physical condition (from a structural survey); environmental matters; tenancies (terms of existing leases if the property is let); and any specific matters from the seller's disclosure. Issues identified before exchange give negotiating room. Issues discovered after completion are the buyer's problem.

A commercial lease may permit your intended use contractually without granting planning permission for it. The planning use class of the property (as determined by the Town and Country Planning (Use Classes) Order) must be consistent with your intended business. A change of use may require planning permission — for example, moving from office (Class E) to a sui generis use, or from retail to food and drink. Always confirm the planning position with your solicitor before completing on a lease or purchase, particularly if you intend to use the property differently from its current occupier.

A straightforward commercial lease on agreed terms can complete in three to six weeks. A commercial property purchase typically takes six to twelve weeks, longer where title or planning issues arise or lender requirements are involved. The most reliable way to get a realistic timescale is to instruct a solicitor early — ideally before heads of terms are agreed — and discuss the specific transaction. Starting the legal process before commercial terms are fully locked reduces total elapsed time significantly.