When entering a new lease there are certain things that you need to consider when agreeing the lease terms. The first thing is the length of the lease, is the term of the lease suitable for you. You also need to consider the rent that’s payable, whether VAT is payable on the rent and any rent reviews. You may also be asked to pay a rent deposit to the landlord as security throughout the lease term. You need to consider the permitted use of the lease, are you able to use the premises for your business. You need to consider service charge payments, are they affordable, are they reasonable, and repair. What are your repair obligations under the lease, quite often commercial premises are fully repairing and that’s quite an onerous obligation on a tenant. Sometimes you may also wish to consider whether you can get out of the lease early, is there a break provision. If not, can you sell the lease or can you under let it to somebody else.
