Commercial Property In Virginia Water

A break clause within a commercial lease enables /one party to the lease to bring a tenancy to an end before the expiry of the contractual term. A break clause typically includes provisions for the tenancy to terminate on a specific date, provided that sufficient notice is given.

The Landlord and Tenant Act 1954 gives a tenant the right to request a new tenancy at the end of the term, called security of tenure. As this is a statutory protection, a landlord can only object based on specific grounds set out in the Act. Some commercial leases are drafted so as to exclude the provisions of legislation in order to remove the protection of security of tenure.

An Option Agreement is a binding contract between a landowner and a developer, which provides the developer with an option to purchase land from the landowner, within an agreed time frame, based on certain conditions having been met. Developers often use
option agreements to secure the right to buy land once they have obtained a satisfactory planning permission.

There are numerous financing options available to fund the purchase of a commercial property. These include commercial mortgages, bridging loans and asset-based loans. Which form of secured lending is best for your commercial property purchase depends on your circumstances, and we would strongly advise that you seek advice before proceeding.

A commercial lease is a legally binding agreement between landlords and tenants for the use of commercial property for an agreed period of time. The lease sets out all of the rights and obligations placed on each party. Sometimes, a commercial licence is used for a specific purpose, such as to carry out alterations to a property before a lease starts or to occupy the premises during a shorter interim period.

Commercial property leases can be drafted as fully repairing and insuring (FRI), where the tenant is responsible for the repair, maintenance and insurance of the property, and the landlord recovers such costs directly from the tenant. However, negotiations are required between the landlord and tenant at the outset in order to come to a mutual agreement on the repair and insurance obligations on each party. Similarly, the standard of repair on the tenant could be negotiated to limit the same to keep the property in a ‘good (and substantial) repair and condition’ or in the same state of repair with reference to a schedule of condition, subject to agreement between the parties.