{"id":180919,"date":"2023-05-15T00:40:25","date_gmt":"2023-05-14T23:40:25","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=180919"},"modified":"2023-05-19T05:34:33","modified_gmt":"2023-05-19T04:34:33","slug":"commercial-lease-main-area","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/commercial-lease-main-area\/","title":{"rendered":"What Are the Main Areas a Commercial Lease Should Cover in the UK?"},"content":{"rendered":"\n

As a commercial landlord or a business tenant, you should understand the main areas your lease agreement should cover. That way, you can ensure you negotiate to include them when you draw up the heads of terms of your lease. Heads of terms list critical points you intend for your lease agreement to contain<\/a>. Knowing the main areas a commercial lease should cover and what they mean for you is also essential. This article will detail some of the main areas a commercial lease should cover in the UK.<\/p>\n\n\n\n

What is a Commercial Lease?  <\/h2>\n\n\n\n

A commercial lease is where a business owner (the lessee) leases property for their commercial premises from a commercial property owner (the lessor). The lessee enjoys sole occupation of the commercial property for a specified period. In return, the tenant pays the landlord rent. <\/p>\n\n\n\n

The commercial lease agreement will include all details regarding a commercial lease, such as the positive and restrictive covenants. Positive covenants obligate one of the parties to the lease to perform something, and restrictive covenants obligate them not to perform specific actions.<\/p>\n\n\n\n

A Security of Tenure<\/h2>\n\n\n\n

A commercial lease agreement will detail whether or not the lease has security of tenure. If a lease has security of tenure, it is a protected lease. In this case, the lease will not automatically end at the end of the fixed term, and the tenant gains a right to renew it. The renewal lease is usually on terms that mean the tenant is better off than it was under the original lease, although the parties are free to negotiate terms.\u00a0<\/p>\n\n\n\n

The default position for most landlords<\/a> now is to require you to complete the lease in a way that means you \u2018opt out\u2019 of the security of tenure protections. This is especially true of shopping centres and office blocks. This is legally permissible, provided it is done in the right way. Generally, commercial leases will contain a clause to this effect and a statutory declaration by the tenant before you enter into the lease. Whether a lease will be protected will normally be decided at the heads of terms stage.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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