Service Charges in Commercial Property: What Occupiers Should Question Before Signing
Service charges in commercial property are one of the biggest hidden costs in a lease, and unlike residential leases there is no statutory cap or reasonableness test protecting you. What you owe is whatever the lease says you owe, calculated however the lease says to calculate it. Before signing, you should ask for at least […]
The End of Upwards-Only Rent Reviews: What It Means for London Commercial Leases
Upwards-only rent reviews have long been a familiar feature of commercial leases in England and Wales, particularly longer leases of offices, shops, warehouses and investment property. At each review, the rent could increase or remain unchanged, but it could not fall below the rent already being paid, even if the open market had weakened. That […]
Assigning a commercial lease: what outgoing tenants need to check before committing
Assigning a commercial lease can help you leave premises before the term ends, but it is not always a clean exit. Before you commit, you need to check the lease wording, landlord consent, the financial strength of the incoming tenant, any Authorised Guarantee Agreement, repair liability, service charge balances, legal costs and whether assignment is […]
Heads of terms for commercial leases: which points matter before you instruct solicitors
If you are taking on commercial premises, heads of terms should never be treated as a throwaway summary. They are usually agreed before the lease is drafted and are commonly marked “subject to contract”, but they still shape the transaction in a very real way. In England and Wales, the RICS Code for Leasing Business […]