Entering into a commercial lease is a significant occasion for any business owner. This might entail either a new store on a busy high street in Leeds, an office to support a growing team or even warehouse space for expansion. Whatever the situation it is important not to rush a lease. A lease is a legally binding contractual obligation and once signed it may be with your business for number of years. Therefore, it is more than useful to be supported by the right solicitor.
Checking the property and ownership
Before anything is agreed, it’s important to know exactly what you’re leasing. This means looking beyond the obvious walls and doors. In larger property, questions often arise about shared information on corridors, lifts or stairwells. If nothing is said and included as appropriate parties, there may be a different conversation later. The next means to verify whether the landlord truly owns the property and the right to lease. This can refer to the property being subject to a mortgage charge in which case consent from the mortgagee would be needed to transfer the lease to the business. These protection measures are in place to help tenants avoid a disagreement in the future and solicitors are the ones to ensure this information is known.
Understanding replies and searches
When entering a lease, tenants are provided with replies to standard enquiries, known as CPSEs. These give vital information about the home property with electric appliances, from business rates and insurance through to asbestos reports or VAT on rent. Alongside that, property searches should be carried out. These reveal things like planning history, flood risk or whether roads serving the property are publicly maintained. On the surface, these searches may look confusing, but solicitors know how to read them and explain what they mean in practice.
Stamp duty and registration
Leases may also attract Stamp Duty Land Tax, depending on their length and rent. It’s easy for tenants to miss this, and late payments mean fines. Solicitors not only advise on SDLT but also handle the filing. For leases longer than seven years, registration at the Land Registry is also required. Failing to do so can cause serious issues later.
Why legal advice is worth it
At first glance, it may look like you are saving money by not seeking legal advice – the risks can be much greater. A solicitor ensures the lease reflects the tenant’s interest and not simply the landlord’s. For businesses in Leeds and around the UK, it is about protecting your future. Speaking with a firm like Kaiser Solicitors is assurance that you will enter into the lease with certainty, confidence and protection.
Final word
If you are about to take on a commercial lease – do not go it alone. Getting the appropriate advice today could spare you from costly mistakes tomorrow. Make the leap to protect your business and take professional advice ahead of signing a lease!
