11 Traps to Avoid When Your Commercial Lease Comes to An End

Renting commercial property can be complicated. Commercial leases and agreements can have over 50 pages of provisions that can affect you financially and it can be hard to work out exactly what rights you have. Listed below are 11 common problems that can arise when your lease is due to end, and what you can do about them.

1. I would like to sell my business, but my lease has almost run out, and I won't be able to find a buyer when there is such a only a short lease left to run.

Seek advice immediately! Most business tenants have a right to insist on their landlord granting them a new lease.

2. I have the right to renew my lease, but my landlord is demanding that I take a standard form of lease which will put many more obligations on me.

The security of tenure legislation is designed to protect tenants. Landlords are only able to amend the terms of the lease when it is renewed in very limited circumstances.

3. I have to vacate the premises as my landlord has served a notice on me claiming to 'forfeit' (end) the lease.

Seek advice immediately! In certain circumstances a landlord can bring a lease to an end if you have broken the terms of the lease. However, this area of law is particularly complex and there are often rights for tenants to claim relief.

4. I have the right to finish my lease mid-way through. I served notice on the landlord but as the date stated on the notice was incorrect, I understand that the notice is invalid and I will have to continue paying rent.

Options to end a lease through this mechanism are very complicated and advice should be taken before exercising them. However, the law does protect the tenant and it is possible that your notice may still be valid even though the date on the notice was incorrect.

5. I am secretary of a tennis club and we rent our premises. Our lease ends in 2 months time and we have been told by the landlord that we have to vacate the premises by this date as the landlord can obtain a higher rent from commercial tenants.

Even though you are not a commercial organisation, you will probably have security of tenure as you will be classed as a 'business tenant'. Consequently, the landlord will have to give you at least 6 months notice accompanied by one of the statutory grounds for possession. Obtaining a higher rent is not a statutory ground.

6. My lease ends next month and I do not want to renew. My landlord says that I should have provided 3 months notice of termination. Therefore I will either have to remain at the property for the necessary period or pay 3 months rent in lieu.

As long as you leave before the end of the lease you do not need to give the landlord any notice of your intention to vacate. However, if you remain at the premises beyond the term of the lease, the situation will be different.

7. I have been asked to accept a lease that is contracted out of the security of tenure legislation.

The security of tenure legislation is designed to protect tenants. Consequently, you would be giving up valuable rights and should negotiate to receive something in return.

8. My lease has come to an end and my landlord is claiming possession, saying that he has causes due to security of tenure legislation - I therefore plan to surrender my interest in the lease.

Seek advice immediately! Possession is only available in limited circumstances and on proof of specified facts.

9. I never signed a written lease for my premises, and now the landlord has asked me to leave by the end of the month.

This will depend on the precise circumstances under which occupation of the property was taken. It may be possible that you have the right to stay on as short term leases do not have to be in writing to be legally valid. Equally, tenants of business premises are protected under security of tenure legislation.

10. My landlord has established a right to possession under the security of tenure legislation and I understand that I am not entitled to claim compensation.

Seek advice immediately! In many circumstances a tenant who does not get a new lease will be entitled to compensation.

11. I rent a retail premises in a centre of similar shops. The shop next door only allows one person to enter at a time for security reasons and attracts a poor standard of clientele who put off my customers by drinking and swearing. This has impacted on my business and I understand there is nothing I can do about it.

Your local authority might be able to help you with anti-social behaviour problems. However, your landlord will also have obligations under the terms of the lease to protect you from this form of harassment. In an extreme case you may be able to bring the lease to an end if the landlord refuses to help.

Don't forget that once your commercial lease is signed you will be bound by its contents. As many commercial leases contain over 50 pages of detailed provisions, which can affect you financially, make sure that you instruct a specialist commercial property solicitor who will have considerable experience in interpreting, negotiating and explaining to you the terms of your lease before it is signed.

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<!DOCTYPE HTML PUBLIC '-//W3C//DTD HTML 4.01 Transitional//EN' 'http://www.w3.org/TR/html4/loose.dtd'><html><head><title>Articles Back Link | 11 Traps to Avoid When Your Commercial Lease Comes to An End</title></head><body><h3>11 Traps to Avoid When Your Commercial Lease Comes to An End</h3><br><br> By: T G Hall<br><br><p><p>Renting commercial property can be complicated. Commercial leases and agreements can have over 50 pages of provisions that can affect you financially and it can be hard to work out exactly what rights you have. Listed below are 11 common problems that can arise when your lease is due to end, and what you can do about them.</P><p>1. I would like to sell my business, but my lease has almost run out, and I won't be able to find a buyer when there is such a only a short lease left to run.</P><p>Seek advice immediately! Most business tenants have a right to insist on their landlord granting them a new lease.</P><p>2. I have the right to renew my lease, but my landlord is demanding that I take a standard form of lease which will put many more obligations on me.</P><p>The security of tenure legislation is designed to protect tenants. Landlords are only able to amend the terms of the lease when it is renewed in very limited circumstances.</P><p>3. I have to vacate the premises as my landlord has served a notice on me claiming to 'forfeit' (end) the lease.</P><p>Seek advice immediately! In certain circumstances a landlord can bring a lease to an end if you have broken the terms of the lease. However, this area of law is particularly complex and there are often rights for tenants to claim relief.</P><p>4. I have the right to finish my lease mid-way through. I served notice on the landlord but as the date stated on the notice was incorrect, I understand that the notice is invalid and I will have to continue paying rent.</P><p>Options to end a lease through this mechanism are very complicated and advice should be taken before exercising them. However, the law does protect the tenant and it is possible that your notice may still be valid even though the date on the notice was incorrect.</P><p>5. I am secretary of a tennis club and we rent our premises. Our lease ends in 2 months time and we have been told by the landlord that we have to vacate the premises by this date as the landlord can obtain a higher rent from commercial tenants.</P><p>Even though you are not a commercial organisation, you will probably have security of tenure as you will be classed as a 'business tenant'. Consequently, the landlord will have to give you at least 6 months notice accompanied by one of the statutory grounds for possession. Obtaining a higher rent is not a statutory ground.</P><p>6. My lease ends next month and I do not want to renew. My landlord says that I should have provided 3 months notice of termination. Therefore I will either have to remain at the property for the necessary period or pay 3 months rent in lieu.</P><p>As long as you leave before the end of the lease you do not need to give the landlord any notice of your intention to vacate. However, if you remain at the premises beyond the term of the lease, the situation will be different.</P><p>7. I have been asked to accept a lease that is contracted out of the security of tenure legislation.</P><p>The security of tenure legislation is designed to protect tenants. Consequently, you would be giving up valuable rights and should negotiate to receive something in return.</P><p>8. My lease has come to an end and my landlord is claiming possession, saying that he has causes due to security of tenure legislation - I therefore plan to surrender my interest in the lease.</P><p>Seek advice immediately! Possession is only available in limited circumstances and on proof of specified facts.</P><p>9. I never signed a written lease for my premises, and now the landlord has asked me to leave by the end of the month.</P><p>This will depend on the precise circumstances under which occupation of the property was taken. It may be possible that you have the right to stay on as short term leases do not have to be in writing to be legally valid. Equally, tenants of business premises are protected under security of tenure legislation.</P><p>10. My landlord has established a right to possession under the security of tenure legislation and I understand that I am not entitled to claim compensation.</P><p>Seek advice immediately! In many circumstances a tenant who does not get a new lease will be entitled to compensation.</P><p>11. I rent a retail premises in a centre of similar shops. The shop next door only allows one person to enter at a time for security reasons and attracts a poor standard of clientele who put off my customers by drinking and swearing. This has impacted on my business and I understand there is nothing I can do about it.</P><p>Your local authority might be able to help you with anti-social behaviour problems. However, your landlord will also have obligations under the terms of the lease to protect you from this form of harassment. In an extreme case you may be able to bring the lease to an end if the landlord refuses to help.</P><p>Don't forget that once your commercial lease is signed you will be bound by its contents. As many commercial leases contain over 50 pages of detailed provisions, which can affect you financially, make sure that you instruct a specialist commercial property solicitor who will have considerable experience in interpreting, negotiating and explaining to you the terms of your lease before it is signed.<br></P></p> <br><br> <b>Author Resource:-></b>  <br><br><b>Article From</b> <a href='http://www.articlesbacklink.com/'>Articles Back Link</a><br></body></html>