Commercial Lease Solicitors

Expert Guidance for Your Commercial Lease Agreements

We help you ensure that your commercial lease is correct, meets legal requirements and works for you. Find out more today.

Navigating commercial leases can seem complicated, but it doesn’t have to be. Here’s everything you need to know, explained simply and clearly, so you can make informed decisions for your business.

What is a Commercial Lease?

A commercial lease is a legal agreement between a landlord and a tenant for the use of a property for business purposes. Key points included in a commercial lease are:

Rent: How much you’ll pay and when.
Responsibilities: Who handles repairs and maintenance.
Duration: The length of the lease and what happens when it ends.

How is a Commercial Lease Different from a Residential Lease?

The main differences are:

Length: Residential leases are typically short-term (6 months to 2 years), while commercial leases can last up to 25 years.
Repairs: Commercial tenants usually handle more repairs, like non-structural fixes.
Health and Safety: Landlords have fewer responsibilities in commercial properties.
Security: Commercial tenants have stronger protections, like the right to stay in the property after the lease ends.

For more on residential leases, check out our Residential Property page.

Types of Commercial Leases

There are several types of commercial leases, and understanding them is key:

Gross Lease: You pay one flat rent amount, and the landlord covers costs like insurance, tax, and maintenance. This is simple but often expensive.
Single Net Lease: You cover property taxes, and the landlord pays other costs. Rare in the UK.
Double Net Lease: Common in the UK. You pay taxes and insurance, while the landlord handles maintenance.
Triple Net Lease: You’re responsible for taxes, insurance, and maintenance—offering the landlord more profit but adding costs for you.

Common Questions About Commercial Leases

What if I don’t have a written lease?

If you’ve been renting for more than a year and your landlord has accepted rent, you’re likely protected by “security of tenure,” meaning you have the right to request a new lease or compensation if the landlord reclaims the property.

What are oral commercial leases?

Oral agreements can be legal if the lease is under three years and rent has been accepted, but they’re hard to enforce. A written lease is strongly recommended to protect both parties.

How Can Fitzhugh Gates Solicitors Help?

We specialize in drafting, reviewing, and negotiating commercial leases to ensure your interests are fully protected. Contact us today to get started.

Why choose Fitzhugh Gates Solicitors?

We listen carefully to your needs and offer clear, practical advice

Expert property solicitors with vast experience in both buying and selling

Comprehensive assistance with all landlord and tenant related matters

Transparent fees with no hidden costs

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Frequently asked questions

What’s the most common type of commercial lease?

A double net lease, where tenants cover taxes and insurance, while landlords handle maintenance, is the most common type in the UK.

Do I pay tax on commercial property rent?

Yes, rental income from commercial property is subject to taxes like income tax, corporation tax, and VAT. It’s a complex area—our team can help you navigate it.

Do I pay stamp duty when renting commercial property?

Yes, tenants are responsible for Stamp Duty Land Tax (SDLT). Overpayments are common, so it’s worth working with a solicitor to avoid costly mistakes.

Who pays for a commercial lease assignment?

Costs are typically split between the incoming and outgoing tenants. These include:

Legal fees: Usually shared.
Landlord’s costs: Paid by the new tenant or shared.
Repairs: The outgoing tenant may need to complete repairs or update certificates like the EPC.

Can a landlord refuse a lease assignment?

Landlords can refuse if they have valid concerns, such as the new tenant’s ability to pay rent or maintain the property. These reasons must hold up in court.

Can a commercial lease end early?

Yes, in certain situations:

Break Clause: If included in the lease, you can exit early.
Assignment: Transfer the lease to someone else (with landlord approval).
Surrender: Negotiate an agreement to give up the lease early, sometimes with a payment to the landlord.