Commercial Leases

A commercial property lease is a form of a legally binding contract specifying the conditions under which a lessor/landlord accepts to let out a property to be used by a lessee/tenant.

The commercial lease agreement gives you the right to use the property for business or commercial activity for a set period. In return for this, you will pay money to the landlord over the agreed period of time.

Our renowned fixed-fee commercial lease solicitors offer commercial lease legal advice and assistance with all aspects of Commercial Leases on a fixed-fee basis.

Whether you are a landlord or a tenant, when you appoint us as your commercial lease solicitor, we will do everything in our power to secure you the best deal possible at the best possible cost to you.

What commercial lease services do we offer?

Our conveyancing solicitors provide a wide range of commercial lease related services throughout England and Wales.

• Renewal of commercial lease
• New commercial lease
• Deed of variation of lease
• Assignment of Lease

What are the common types of leases?

There are different types of business and commercial leases, but the four most common types are listed below:

1. Absolute Net Lease
2. Triple Net Lease
3. Modified Gross Lease
4. Full-Service Lease

1. Absolute Net Lease

The Absolute Net Lease is also known as a “bondable lease. In this type of lease, the tenant is typically responsible for all, or most, of the risks related to the real property.

2. Triple Net Lease

The Triple Net Lease is often referred to as “NNN”. In this type of lease agreement, the tenant or lessee promises to pay all the expenses of the property including real estate taxes, building insurance, and maintenance.

The Triple Net Lease is the most common type of commercial lease where the rent does not include operating expenses.

3. Modified Gross Lease

The Modified Gross Lease transfers the entire burden onto the property owner. Based on the terms, the landlord pays for most of the property operating expenses such as property taxes, insurance, as well as common area maintenance. On the other hand, the tenant shoulders janitorial, utility, and interior maintenance costs. And some operating costs are included in the base rent.

4. Full-Service Lease

As the name suggests, the full-service lease takes care of most of the cost of operating a building. Nonetheless, there are a few exceptions, such as data and telephone costs. Otherwise, the rest of the cost is on the property owner, including common area maintenance, taxes, interior, insurance, utility, and janitorial costs.

Drafting commercial property leases

Our professional team of commercial property lease solicitors in London can assist with the drafting of tailored commercial property leases to suit any situation and negotiating leases for landlords and tenants.

What are the main costs involved in leasing a commercial property?

There are 8 main costs to consider before leasing business premises:

1. Rent and service charges for business premises.
2. VAT payable on rent if the landlord is VAT registered. 
3. Building insurance for business premises.
4. Disbursements - the costs of searches and Land Registry fees.
5. Any alterations, maintenance, and repair costs.
6. Costs when requesting a landlord’s permission, if buying an existing lease.
7. Professional fees for your solicitor and surveyor.
8. Non-domestic rates (business rates).