Corporate Occupiers

When negotiating a lease, corporate occupiers should carefully assess the length of term, break options, rent review provisions, repair obligations, and service charge liabilities. Flexibility is key – clauses allowing for assignment or subletting can offer valuable options down the line.

It’s also vital to consider the impact of lease obligations on operational needs and business continuity, especially in relation to premises fit-out, signage rights, and access. Engaging legal advice early can help identify favourable terms, reduce exposure to risk, and ensure the lease aligns with long-term business objectives.

Reducing property costs can be achieved through various strategic and legal measures. These may include negotiating more favourable lease terms, such as rent-free periods, tenant incentives, or limiting service charge exposure. Exercising break clauses or rights to assign or sublet surplus space can also help manage overheads.

Common issues include onerous repair and reinstatement obligations, uncapped service charges, limited flexibility to exit or assign the lease, and rent review mechanisms that significantly increase outgoings. Other risks arise from alienation clauses that restrict the ability to share or transfer space, or from insufficient protection around rights to renew under the Landlord and Tenant Act 1954.

Legal advice helps identify hidden liabilities and ensures the lease reflects your business needs.

The process begins with a thorough review of the lease to understand the conditions governing assignment or subletting. Most leases require the landlord’s consent, which must not be unreasonably withheld or delayed, subject to certain criteria. The outgoing tenant may need to provide an authorised guarantee agreement (AGA) or meet other covenants.

We assist clients by preparing and negotiating licence to assign or sublet documentation, liaising with landlords, and ensuring compliance with all lease conditions.

Lease disputes may arise from issues such as service charge disputes, rent reviews, breach of repair covenants, or disagreements over consent for alterations or assignment. Our property disputes team boasts extensive expertise in handling a wide variety of complex high-value disputes.

Key requirements include compliance with permitted use under the local authority’s planning regime, adherence to building regulations, and conformity with health and safety legislation. Landlords and tenants should also be aware of obligations under the lease that may affect compliance responsibilities. We advise occupiers on all aspects of regulatory compliance, helping to manage risk and ensure the premises remain legally compliant throughout the term of occupation.

Dilapidations refer to the tenant’s responsibility to repair and restore the premises in accordance with the lease terms at the end of the tenancy. Failure to meet these obligations can result in a financial claim from the landlord. The extent of liability will depend on the lease wording, any schedules of condition, and the property’s state at lease commencement.

Early legal and surveyor advice is key – particularly if considering exit or disposal options. We advise on limiting liability, negotiating settlements, and managing risk exposure during and at the end of occupation.

When acquiring property, companies should consider legal title, planning permissions, environmental risks, and whether the premises meet both immediate and future operational needs. Due diligence is essential to uncover any issues affecting use or value. When disposing of property, timing, tax implications, and liabilities (such as repair covenants or outstanding obligations) must be considered.

We advise on both freehold and leasehold transactions, working closely with your agents and professional advisers.