5 Key Steps To Leasing A Commercial Property

If you find the process of taking on a commercial property lease to be overwhelming, the professional advice of a commercial property solicitor can be invaluable in negotiating a fair and competitive lease that allows your business to thrive.

As commercial property solicitors in Burton on Trent, the team at Astle Paterson is here to help you with all aspects of the process. In this article, we will outline the key steps to securing a commercial property lease.

Legal Title Investigation

The first step in the process is to ensure the freeholder is legally permitted to lease the property and that it is free from faults. Some properties may have covenants or restrictions in place to prohibit or limit business activities on the site, so it is vital that the status of the property is properly assessed to ensure that you are not entering into a flawed transaction that will cause more problems in the future.

Due Diligence Enquiries

No property transaction should be entered into without a comprehensive understanding of what it entails, so your solicitor will initiate several enquiries to find out as much about the property as possible. The enquiries, which will take the form of Commercial Property Standard Enquiries (CPSEs) will be raised with the seller’s solicitor and will cover a broad range of topics so that you are fully informed about the property before entering into a legally binding lease agreement.

Lease Agreement

Once your solicitor is satisfied with the outcomes of the due diligence enquiries, the terms of the lease will be discussed at length until an agreement is made between both parties. This may take some time and there may be some “to-ing and fro-ing” as each contractual element is thrashed out.

One common area of contention is the responsibility to undertake repairs on the property, and whether or not this resides with your business or the freeholder. Your solicitor may require you to create a Schedule of Conditions that outlines the initial state of the property so that your liability in this area can be evaluated in the future.

Entering The Agreement

Once you and the freeholder have signed the lease agreement, the lease will be regarded as finalised and leasehold payments can be paid to the freeholder’s solicitor.

Before the lease begins, ensure that you have all the relevant information about the property, such as keys, alarm codes, and starting utility meter readings.

Post-Completion Issues

Your solicitor will now handle any post-completion issues, such as registering the lease with HM Land Registry or paying Stamp Duty Land Tax, if applicable.

Contact Us For More Information

As Burton on Trent’s leading commercial property solicitors, we have the legal experience and expertise to offer clear advice on all types of commercial properties and land transactions.

To find out more about our services, please contact Astle Paterson today at 01283 531366 or send us a message and one of the team will be in touch soon.

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