Commercial Property Advice for Landlords

Advice for landlords and commercial property leases

We work with some of the largest commercial property landlords in Sussex, Kent and the wider South East, including those who manage large industrial, business and retail parks and those with diverse volume property portfolios. The Commercial Property Team are focused and provide a thorough value for money service. We offer tailored fee estimates, volume discounts and the latest technology that allows landlords to complete legal administration with ease.

The key considerations for any landlord:

• Market Rent: Rix & Kay cannot advise as to the commerciality of a transaction but we do have a network of known agents who can assist you, if you are thinking of leasing your property for the first time, and we would be happy to put you in touch with them;

• Term: Ascertaining what term is appropriate for your transaction will depend on a number of considerations. For example, if you are granting an underlease then you should only be granting a lease for a term, as allowed for, in your head lease. Term is also linked with the rent you plan on charging, as you may be willing to grant a lease on a lower rent but for a shorter period, if for example, you envisage your property being vacant for a period of time, for whatever reason.

• Security of Tenure: You will be asked whether you want to grant your tenant security of tenure. To summarize generally a tenant with security of tenure has the right to a new lease at the end of the Term on the same terms. To oppose the grant of a renewal lease which has security of tenure, you will have to satisfy one of the seven grounds under Section 30(1) of the LTA 1954.

• Tenant Security: What level of security is appropriate for you to obtain from the incoming tenant? Will a Rent Deposit suffice or will you also require a Guarantor?

• Break Dates: Is it appropriate, due to the length of the Term, to insert break dates if you plan to redevelop in future or simply to let to a new tenant on a higher rent?

• Rent Review Provisions: You may consider that you require the rent to be raised in each and every year of the term or you may require a rent review every 5 years of the term. Equally, the increase could be for the higher of the current rent, or fair market value at the review date, or it could be RPI linked.

All of the above considerations are usually agreed in advance between a Landlord and Tenant and submitted to the relevant solicitors by way of a document called a Heads of Terms.

If you are planning to enter into a lease, have agreed your Heads of Terms and require any assistance with the legalities of entering into the same please do not hesitate to contact Rix & Kay today.

Commercial Property expertise

• Industrial, business and retail parks
• Grant and renewal of commercial property leases
• Subletting and assignment of leases
• Rent deposits
• Deeds of Surrender
• Licences for alterations
• Dilapidations claims
• Development
• Agricultural short-term tenancies

“The team at Rix & Kay is led by managing partner Richard Cripps. Cripps is regarded for his experience in the agricultural sector and also acts on a range of residential and commercial development projects and portfolio acquisitions for a variety of clients”.

“Richard Cripps – commercially aware and no nonsense, concise advice”.

Industry peers praise Rix & Kay in the latest edition of Legal 500