Commercial leases come in various forms, tailored to fit landlords’ and tenants’ unique relationships. These agreements are often shaped by several factors, including the type of business conducted, the nature of the property involved, and the specific terms agreed upon by both parties. From full-service leases that simplify budgeting for tenants to net leases that incrementally increase tenant responsibilities and to percentage leases that link rent to business performance, the diversity in lease types reflects the complexity of commercial real estate transactions. By carefully selecting the appropriate lease type, landlords and tenants can ensure that their commercial real estate investments…
Gill Laing
Gill Laing
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing Agency for the Professional Services Sector.
A short-term commercial lease in the UK refers to a rental agreement between a landlord and a business tenant for a commercial property, lasting typically from a few months up to three years . These leases offer businesses the flexibility to occupy a commercial space for a shorter period than traditional long-term leases, which can last several years. For several reasons, understanding short-term commercial leases is crucial for business owners and entrepreneurs. Firstly, such leases provide the flexibility to test new markets or locations without the long-term commitment of traditional leases. This can be particularly beneficial for startups, businesses looking…
A commercial lease is a formal agreement between a landlord and a business tenant to rent a property used for commercial purposes. This arrangement allows businesses to occupy and use commercial spaces, such as offices, retail units, warehouses, and factories, without owning the property outright. In the UK, commercial leases play a crucial role in the business environment, serving as the foundation for the operations of small and large enterprises. The significance of commercial leases in the UK stems from their flexibility and the security they offer landlords and tenants. For landlords, commercial leases represent a stable income stream and…
Forfeiture of a commercial lease is a legal process in the United Kingdom that allows a landlord to terminate a lease before its agreed expiration date due to a tenant’s breach of lease terms. The most common grounds for forfeiture include the non-payment of rent, violation of lease conditions, or tenant insolvency. Through the forfeiture process, landlords will be concerned with protecting their property rights while ensuring that tenants understand their responsibilities and the consequences of non-compliance. Section A: Understanding Forfeiture of Commercial Lease 1. What is Forfeiture of a Commercial Lease? In the United Kingdom, forfeiture…
In law, duress is a concept that can have different contextual meanings. Duress in contract law refers to circumstances in which a person or party is forced into a contractual agreement through the use of illegitimate pressure. This may be by way of a threat of physical violence, a threat to property or through economic pressure. Duress in contract law is often considered alongside the doctrine of undue influence. Undue influence refers to circumstances in which a party has entered into a contract as a result of undue pressure but this pressure is not sufficient to establish duress. Duress and…
In the UK, a commercial lease represents a binding contract. Such leases are structured to offer both the property owner (landlord) and the lessee (tenant) a measure of stability and certainty for the future. However, there are occasions when one or both parties might find it necessary to leave the lease before its scheduled end. Reasons might include the tenant’s desire to upgrade to a bigger space, shut down their operations, or shift to a different location. Exiting a lease involves more than simply vacating the building and handing over the keys to the property owner since the lease likely…
At the conclusion of a commercial lease, both parties can enter into informal discussions to renew the lease. The process of renewing a commercial lease in the UK is governed by the Landlord and Tenant Act 1954, which offers protection and clear guidelines for both landlords and tenants. If an agreement on the renewal terms is not reached and the lease is protected under the Landlord and Tenant Act 1954, which grants ‘automatic renewal rights’, either side can issue a notice, making timely resolution critical. How to Renew a Commercial Lease The process to renew a lease covered…
A lease surrender constitutes a consensual agreement between a landlord and a tenant to conclude a commercial lease prematurely, where the landlord consents to reassume possession of the property. Both commercial landlords and tenants face vulnerabilities during periods of economic fluctuation. Tenants may find it challenging to fulfil rent payments and adhere to their lease commitments, whereas landlords might need help maintaining consistent rental income. Ending a Commercial Lease Tenants seeking to withdraw from their commercial lease obligations have two main options: finding a new tenant to transfer the lease to or negotiating a lease surrender with their…
The Commercial Rent Arrears Recovery (CRAR) procedure allows landlords in the UK to recover rent arrears by taking control of the tenant’s goods and selling them to cover the outstanding rent. CRAR was introduced as part of the Tribunals, Courts and Enforcement Act 2007 and was enacted in April 2014, replacing the previous common law right of distress. CRAR is an essential aspect of commercial property law in the UK, offering a structured approach for rent arrears recovery. Understanding the legal framework and processes involved in CRAR is crucial for landlords and tenants in the commercial sector. It provides landlords…
Are you looking for new ways to finance your established business, or perhaps you’re just on the point of launching a new business and you need to secure funding to get you started? Whatever stage your business is at, there are plenty of places to turn for financial assistance but there are just as many factors to consider when deciding which option to take. Government help If you’re in the process of starting a new business, or your business has been in existence for less than 24 months, it may be possible to obtain a government backed start-up…
There are two processes for restoring a company to the Register, either by Court Order or by ‘administrative restoration’ under section 1024 of the Companies Act 2006. The appropriate route will be determined by a number of factors. Restoring a company to the register by way of administrative restoration requires certain eligibility criteria to be met and as such, will not be possible in all circumstances. Where the fact pattern does not meet the administrative restoration criteria, a Court Order would need to be applied for. Administrative restoration or Court Order? Administrative restoration may be available where the business…
Company restoration is the process by which a company that has been dissolved can be ‘brought back to life’. You might want to restore your dissolved company in order to recover its assets or to continue trading. The Companies Act 2006 covers the process of restoring a dissolved company. There are two routes business-owners can take to restore a dissolved company. These are called: a. Administrative Restoration b. Court Application to Restore Which procedure is most suitable for your circumstances depends on the reason why your company was dissolved in the first place and the reason why you now want…
A bona vacantia waiver letter is a document outlining the Crown representative’s consent to administratively restoring a dissolved company back to the company register. Bona vacantia is the legal term for business assets which are passed to the crown when a business is struck off. In accordance with Section 1000 of the 2006 Companies Act (Section 652 of the 1985 Companies Act if your case dates prior to 2006), your business can be removed from the Companies Register at Companies House if the Companies Registrar has reasonable grounds to believe no business is being carried out by the company. Common…
While going back on an agreement made with a friend can be a little socially uncomfortable, the stakes are much higher when it comes to more formal arrangements, where breach of contract can have serious legal repercussions. Contracts are made every day in commonplace exchanges – when a consumer makes a purchase from a retailer, for example, or when someone formally accepts an offer of employment. This article focuses specifically on contracts between businesses, but the underlying issues are very similar. So, what is a breach of contract and what should you do if you find yourself in this situation?…
An effective shareholders agreement can protect against disputes between your company’s shareholders and directors. A shareholders’ agreement is a private contract between some or all of the shareholders in a company, governing how the shareholders interact with the company, as well as with each other. Any company that has shareholders should have a properly drafted shareholders’ agreement that details the rules for how the company is owned and operated. Regardless of the size of the company or the number of shareholders, it is sensible to draw up an agreement at the company formation stage so that the roles and rights…
A limited company in the UK is a business structure where the company operates as a separate legal entity from its owners. This setup provides a key advantage: the personal financial liability of the company’s shareholders or guarantors is limited to their investment or the amount they agree to contribute in case of debt. This means their personal assets are usually protected if the company faces financial difficulties. There are two main types of limited companies in the UK: those limited by shares and those limited by guarantee. Companies limited by shares are typically profit-making businesses, where the ownership is…
If you’ve considered your options and decided that a limited company is the best business structure for you, what do you need to do next? Under the Companies Act 2006, your business can’t operate as a limited company until it has been incorporated (i.e. successfully registered) at Companies House. It’s always within your best interests to ensure that you have all the required information and that you complete your registration documents correctly. Should your registration be rejected, you may resubmit without paying a further fee but the resulting delay will prevent your company from trading until your incorporation submission is…
Shareholder disputes have the potential to cause significant damage and disruption to a company’s commercial interests. Taking effective steps to resolve shareholder disputes can be business-critical. There are a number of reasons why a dispute may arise between company shareholders or shareholders and directors. Some common causes of shareholder disputes include: a. Poor performance by a shareholder or director b. Accusation that the board is failing to meet its’ legal obligations c. Disagreement over the company’s direction and development d. Conflict of interest, for example of a director has interests in a competitor e. Dissatisfaction with the terms of…
Venturing into the commercial property sphere without a deep understanding of the UK’s commercial property tax regulations could lead to significant financial pitfalls. The complexities of the UK tax system can catch you off guard, resulting in hefty unexpected charges, fines, loss of property and a tarnished relationship with HM Revenue and Customs (HMRC). This guide aims to demystify commercial property taxation, covering everything from capital gains tax on commercial properties to stamp duty on commercial transactions. Keep reading to safeguard yourself from tax-related issues. Section A: Understanding the Intricacies of Commercial Property Tax in the UK 1.…
Commercial property solicitors play a pivotal role in the UK’s real estate market, ensuring that transactions involving commercial properties are legally sound, efficient, and tailored to meet the specific needs of businesses. Their expertise is crucial for a range of activities, from buying, selling, and leasing commercial spaces to navigating complex planning laws and resolving property disputes. Given the significant financial and legal implications of commercial property transactions, choosing the right solicitor can be a pivotal decision for businesses. The guide provides: • Practical advice on starting your search. • Key attributes to look for in a solicitor. • Tips…