1. Find a property which you like. Then speak to your accountant who will advise you initially about whether you should take on the commercial property lease in your name or in the name of a limited company.
2. Negotiate the heads of terms with the landlord or the landlords surveyor. Heads of terms normally comprise the following items:
a. Landlord’s details
b. Tenant’s details
c. Guarantor’s details
d. Property details
e. Length of term of the lease
f. Details of the rent and any rent review dates
g. Whether or not a rent deposit deed is required
h. Details of services to be provided by the Landlord and details of any payments required pursuant to a service charge
i. Details as to who is to insure
j. What the permitted use of the property is to be
k. Whether assignments and under leases are permitted
l. What the nature of the repair obligations are
m. Whether structural and internal alterations are permitted
n. Details of any works the tenant’s is doing prior to taking on the lease.
o. Details of any works to be carried out by the landlord prior to taking on the lease
p. Details of who the solicitors acting for the Tenant are, and the details of the solicitors acting for the landlord.
3. You should contact us during the negotiation of the heads of terms and send a copy to us prior to finalising it so we can advise on anything you need to consider. We cannot advise on things such as whether the rent you are paying is fair or not, however where we can try and add value we will attempt to assist.
4. Once the heads of terms have been agreed you should sign them. A copy of the heads of terms will then be sent by the letting agent acting for the Landlord to the Landlord’s solicitors and then Tenant’s solicitors.
5. We will send you our client care letters for signing and if required advanced payment of costs form, which you will need to sign and return back to us.
6. The Landlord’s solicitors will then email to us the following documents:
a. The draft lease;
b. Evidence of the Landlords legal title to the property;
c. Replies to standard commercial property enquiries;
d. If require any rent deposit deed and licence for alterations.
7. We will then consider and amend the lease to make it tenant friendly and submit it back to the landlords solicitors, and we will also if required we will also submit for searches.
8. There will be a lot of drafts and amendments of the lease between the Landlords solicitors and the Tenants solicitors, until the lease is in the approved form.
9. Once the lease is in the approved form we will send you a full report on the terms of the lease you are signing up to; together with the lease for signing and if required any rent deposit deed and also licence for alterations.
10. Once you return the signed lease to us and made any payments required for the first quarter or months rent, we will then call the landlords solicitors and date the lease.
11. Once the lease is completed, we will send a copy to you for your records and then send the lease to our commercial property post completions team to register the lease at the Land Registry and submit any stamp duty land tax payable on the lease.
PLS Solicitors specialise in advising on the complex area of commercial property. We offer a friendly, efficient and effective legal advice on any area of commercial property.
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