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Commercial tenants in a commercial lease agreement are granted the right of exclusive possession of the property they occupy for the duration of the lease term. Commercial tenants may occupy the entire property or a specific part of it, as your lease agreement will detail. In a commercial lease agreement, the tenant has both rights and obligations. Tenants have the right to occupy the premises but usually have an obligation to make any repairs as needed. Contrarily, tenants may be obligated to pay the landlord a service charge to carry out repairs. Your lease agreement may also grant you rights over land beyond the demised premises for the lease term. This article will explain the importance to tenants of land rights their landlord may grant in a UK commercial lease outside the property lease demise.
Demised Premises
The term ‘demised premises’ in a commercial lease agreement refers to the land or property you have the right to exclusive possession of till the end of the lease term. A lease agreement will detail at the outset precisely what this is and will often contain a floor plan for clarity.
If you lease an entire property as a commercial tenant, the demised premises may be evident. If you occupy part of a building, however, it may not be. Clarity of the demised premises is, therefore, particularly significant in these circumstances. The demised premises in your commercial lease is the area you have certain rights over as the tenant in occupation.
Commercial Tenant Land Rights Beyond the Demised Premises
Generally, your rights in a commercial lease will only apply to your demised premises. However, you may also be granted rights over land outside the demised premises. These rights can be fundamental to you as a commercial tenant and below are some your lease may grant you.
Rights of Way
Your lease agreement may grant you, the commercial tenant, rights of way to allow you to access your commercial premises. Rights of way can be fundamental to commercial lease agreements. Without rights of way, you may be hindered from occupying the commercial property you have leased.
Landlords can only grant you rights of way in the commercial lease agreement if they have the legal right to do so. For this to occur, an access way must be present, or the landlord must request that an access way be made available.
Commercial Tenant Right to Essential Services Beyond the Demised Premises
Commercial tenants may also be granted rights over land not part of the demised premises so the business can access essential services. This could include, for example:
- water;
- gas;
- electricity; and
- telephone.
It is vital that you can access these services as you need them to run your business. Without these essential services, your business will likely be unable to function. Consequently, the commercial lease, in turn, becomes ineffective.
Scaffolding Rights
If you have permission and intend to work on your commercial premises, you may need to put up scaffolding to allow the work to commence. If so, you will require rights to land outside your demised premises which the scaffolding will stand on. Your lease must grant you the freedom to erect scaffolding. A provision such as this is essential where your lease requires you to make repairs and maintain the property.
Parking Rights
In your business, you may drive to different locations frequently. Likewise, clients may visit your commercial premises if your business is service-based. In conjunction, you and your staff may drive as a means to get to work. If any of these situations apply to you, you may require rights to land outside your demised premises for car parking purposes. Without these rights, your business may be unable to carry out the work it was established to do. Therefore, the commercial lease in place no longer serves its purpose.
Car parking rights may be in your lease through a specific lease provision. Alternatively, you may have a separate car parking lease with your commercial landlord. Commercial landlords typically have a wide breadth of control over your car parking rights in a commercial lease. You should be aware of this, as landlords may rely on this control to amend the agreement down the line.
This cheat sheet outlines what you should be aware of in your lease agreement.
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Key Takeaways
As a commercial tenant with a commercial lease, you may require rights to land outside your demised premises. It is often imperative that your lease grants you rights to land outside your demised premises. These rights may be vital to your business functioning effectively. Similarly, these rights may be crucial to you and your staff fully enjoying the premises. For example, you may need rights over land not part of your demised premises to effectively access your commercial premises. Your business may also need to have the right to car parking outside your demised premises. For example, your employees may need to drive to work and park nearby. Likewise, you will likely need to offer car-parking facilities for clients visiting your commercial premises.
If you need help understanding the importance of land rights granted outside of the demised premises, contact our experienced leasing lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The demised premises of your commercial lease is the area of land you have the right to exclusive possession of for the lease term.
An important land right sometimes granted to a tenant outside their demolished premises is the right to connect with services such as gas and telephone, as without this, their business cannot function.
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