Commercial leases can, at times, be confusing both for commercial landlords and commercial tenants.\u00a0Commercial lease agreements may contain lease provisions you might need help understanding and contain unfamiliar jargon. It is, however, essential that property owners and business tenants understand their commercial lease.\u00a0They are both legally obligated to abide by it for the lease term.\u00a0<\/p>\n\n\n\n
One lease feature you may not fully understand is what a contracted-out or non-protected commercial lease means. This article will explain what a contracted-out lease is in the UK.<\/p>\n\n\n\n
A commercial lease is where a property owner allows a business owner to occupy their commercial property for a specific time, which is the lease term. The business owner becomes the commercial tenant and uses the property as their commercial premises. Therefore, the commercial tenant runs their business from the premises where the landlord permits them to carry out specific activities.\u00a0Commercial tenants pay their landlord an agreed rent at set intervals during their commercial tenancy.<\/p>\n\n\n\n
A commercial lease agreement is a binding legal contract that details the commercial lease. It contains all the rights and obligations of both parties to the lease.\u00a0For example, it will describe the following:<\/p>\n\n\n\n
A commercial lease may have security of tenure and hence be a protected lease.\u00a0This protection for commercial tenants stems from the Landlord and Tenant Act 1954<\/em><\/a>. When a protected lease reaches its end term date, it will legally automatically renew unless the commercial landlord gives one of the limited legal reasons it should not.\u00a0This is the tenant\u2019s statutory right.\u00a0<\/p>\n\n\n\n A commercial tenant, therefore, remains in occupation under the same conditions unless they request better ones, which the landlord may or may not accept. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n