Navigating Commercial Property: Expert Tips for Landlords and Tenants

Buying a commercial property or granting a new lease requires careful consideration. Engaging a reliable and trustworthy commercial property lawyer is essential to ensure that the lease and contract terms are favourable and free of onerous conditions.

In this blog written by Alisa Smith, commercial property lawyer at JNP Legal, we will explore important aspects of commercial property transactions and the legal support JNP Legal offers to both landlords and tenants.


Full Repairing and Insuring Leases

Most commercial leases are drawn up on a full repairing and insuring (FRI) basis. This means that the tenant is responsible for repairing and maintaining the building, regardless of its condition at the start of the lease. This responsibility can be significant, especially if the property was initially in poor condition.


Tip: As a prospective tenant, consider limiting your repairing liability. We strongly recommend obtaining a survey report at the outset of the transaction to establish the property's condition. This report can help identify potential future problems and serve as a basis to negotiate repair obligations with the landlord.


Key Lease Terms to Consider

Before entering a lease, several factors require careful consideration:

Lease Term: The duration of the lease impacts your business operations and financial planning. Whether you prefer a short-term or long-term lease, each option has its benefits and drawbacks.

Break Clauses: These clauses allow either party to terminate the lease before its end date, providing flexibility. Clear definitions are crucial to avoid disputes.

Assignment and Alterations Clauses: Understanding these terms ensures you know whether and how you can transfer the lease or make changes to the property.


The Importance of Legal Advice

Whether you are a landlord or tenant, seeking legal advice before agreeing to lease terms is crucial. At JNP Legal, we discuss your requirements in detail to ensure all terms are clear and fair. Our team is dedicated to providing transparency in costs and keeping you informed of any additional charges, allowing you to make informed decisions.


Navigating commercial property transactions can be complex, but you don’t have to do it alone. Let JNP Legal be your trusted partner in ensuring favourable and fair terms for your commercial lease or property purchase. Contact us today to discuss your requirements and schedule a consultation at one of our four local offices in South Wales.


For more information, visit our website or contact our team directly.