Business leases are very different to standard residential leases.
The area is a lot more complex.
As an example, in some situations before entering a commercial lease you have
to seek legal advice to ensure you are aware of your legal position.
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A lease is a contractually binding contract between a tenant and landlord. It sets out the rights and responsibilities for each party. It is advised that you seek legal advice prior to entering a business lease.
A lease is made up of clauses. One clause that is usually included in a business lease over a residential lease is rent review. This usually sets a time period, say 5 years, in which the landlord can decide whether to increase the rent due to a market increase. If the review cannot be agreed, usually an Independent Reviewer will make the final decision.
Another clause commonly found in business leases is the use of the property. Business leases are very strict in what the premises can be used for. A standard table is used detailing all the different types of businesses such as hotels, retail or offices. The lease will set out which categories can be used and whether the use can be changed with the landlords permission.
Transferring the lease is usually addressed within the contents. It will detail whether the tenant has the right to transfer the lease to a new owner. For example, the original tenant could enter financial difficulties and no longer able to keep up with the payments. If the lease does not allow the tenant to assign, then there could be huge financial consequences as they will be liable for the rent.