Commercial Property

Commercial Property

Our team are specialised, technically proficient and commercially aware. We are interested to discuss your aims for your commercial property and bring them to fruition, whether that involves legal advice, drafting and preparing documents or negotiation.

 

When purchasing a commercial property, we can guide you through the process from beginning to end, from the bidding process to due diligence checks, conveyancing and arranging payment of stamp duty, if required.

 

Whether you are a commercial tenant or landlord, we can advise you on entering a commercial lease or renewing an existing one. We can advise you on whether your lease can be renewed, the process to be followed and negotiating a new lease. When seeking to obtain finance for commercial property, if required we will act on your lender’s behalf or liaise with your lender’s solicitor.  We can also assist with regard to advice on dilapidations and general landlord and tenant advice.

 

We also provide quality legal advice on the following commercial property matters:

 

  • Tenancy agreements
  • Renewing a lease, subletting and assignment
  • Rent review
  • Breach of Lease Agreement
  • Site acquisition and disposal
  • Option Agreements
  • Planning law and s106 agreements

 

To find out more about how we can advise you on commercial property matters, please fill in our contact form or visit our Contact Page to find the Nalders office which is most convenient to you.

Buy To Let Properties

Whether you are purchasing a second property as part of your retirement plan or adding to your existing portfolio, our experienced conveyancing specialists will do our utmost to ensure your investment purchase has a good and marketable title.

 

Considerations When Purchasing a Buy to Let Property

 

If you are looking at entering the buy to let market, it is important to be aware of the costs so you can budget and manage your cash flow accordingly.  For a simple transaction, you will need to factor in fees owed to agencies, mortgage brokers, Stamp Duty Land Tax (higher rate) and insurance companies, not to mention other costs such as professional property inventories, Energy Performance Certificates (EPCs), gas certificates, fire safety and Portable Appliance Tests (PATs).

 

You will also need to invest in furniture and fittings if you plan to let the property ready furnished.

 

We can help you manage your costs by providing quick, efficient legal advice and services.  Our property team’s vast experience in dealing with all types of property transactions allied to our robust case management system gives our clients the confidence that their legal matters are fully in hand, allowing them to concentrate on securing the best yields.

 

Additional Services

 

At Nalders we can also assist you beyond the initial purchase of your buy to let property on matters including:

 

  • Drafting rental agreements
  • Collection of unpaid rent
  • Tax planning and disputes
  • Refinancing your property portfolio
  • Evicting bad tenants

 

We have been advising property investors in the West Country for over 225 years.  Many of our buy to let clients are second-generation, a testament to our commitment to long-term client relationships and exceptional service.

 

To find out more about how we can advise you on buy to let matters, please fill in our contact form or visit our Contact Page to find the Nalders office which is most convenient to you.

Lease Renewals, Subletting and Assignments

Our team of highly experienced solicitors can assist you in renewing a lease, whether you are a tenant or landlord, ensuring the correct steps are followed, and the new lease is negotiated to suit your best interests.

 

We can also assist clients on the issue of subletting and assignments, writing detailed clauses into the lease agreement to ensure all parties know their rights and obligations.

 

If required, we can act as a go-between, allowing landlords and tenants to negotiate lease renewals and subletting arrangements in the correct manner.

 

Lease renewals

 

The Landlord and Tenant Act 1954 provides for the automatic renewal of a commercial lease.  Unless you have specifically waived your rights under the Act, your lease renewal is likely to fall under the 1954 Act.

 

A lease renewal can be initiated by the tenant or landlord.  If the lease expiry date passes and the renewal process has not been triggered, the lease will carry on, and the tenant can cancel the tenancy with three months’ notice.  The tenant can seek a new lease and may wish to do so if the market rent is lower.

 

The tenant must give between six and twelve months’ notice to renew the lease, and the notice must include the proposed new lease terms. The landlord must give notice of any dispute within two months. If the landlord agrees to renew the lease, the parties can then negotiate the terms.

 

The landlord can refuse your request for renewal on a number of grounds, for example, if they want to use the premises themselves, they wish to redevelop the property or if you have not met your obligations under the lease.

 

Subletting and assignment

 

A commercial lease will often have a clause, subject to the landlord’s consent, permitting the tenant to sublet part or all of the premises or assign the lease to another party.  If this is the case, a tenant must carry out the sublet or assignment in accordance with the agreement to ensure it is lawful.

 

Our commercial solicitors can introduce you to an independent commercial agent to facilitate negotiations between all parties to a lease assignment or sublet, ensuring the landlords are not forced to accept an unsuitable tenant, and when acting for the outgoing tenant, ensuring that their ongoing liability is limited.

 

To find out more about how we can advise you on commercial property matters, please fill in our contact form or visit our Contact Page to find the Nalders office which is most convenient to you.

Rent Review

With hundreds of years of history and experience in commercial property to draw on, you can trust that our commercial property team can provide accurate, pragmatic legal advice on rent reviews, as it relates to landlords and tenants.

 

We understand the tensions and motivations of landlord and tenants during a rent review process; landlords are driven to achieve the best return on their investment, commercial tenants need to keep their overheads down.

 

Rent review procedure

 

The frequency of rent reviews is generally negotiated between the parties to the lease, with the most common timeframe at present being every three to five years.  The rent review clause will state who can initiate a rent review when the time comes around.  In most cases, notice will need to be given in writing.

 

Well-drafted rent review clauses will provide for referral to an independent third party where the new rent cannot be agreed.  It is fairer if both parties can make the referral, although some clauses restrict this right to landlords only.  Some landlords also retain the right to choose at the time of referral whether the third party is to act as expert or arbitrator.

 

Mediation is now often used in cases where there is a dispute as to what a fair rent should be on review.  While this often is a cheaper and quicker solution, a mediator does not have any authority to impose a binding rent on the parties, so in complex cases, this may not be the most commercially viable solution.

 

How we can help

 

If a rent review dispute develops, our commercial property litigation team will help you to understand the terms of your lease agreement, the best procedure for the resolution of the dispute and recommend a course of action to protect your interests.

 

We work swiftly and sensibly, preserving the commercial relationship between the parties wherever possible.

 

To find out more about how we can advise you on rent review clauses and disputes, please fill in our contact form, or visit our Contact Page to find the Nalders office which is most convenient to you.

Site Acquisition and Disposal

In the field of property development, our expertise includes advising on site acquisition for developers and disposal for sellers.  Given our 225-year history in the West Country, we have developed the expertise to assess the relative merits and pitfalls of sites for our clients – a skill that is essential for successful property development.   Our commercial property team are well practised in dealing with large, medium and small sites, and we enjoy strong, trusted relationship with local businesses, enabling them to access our connections to developers who are new to our region.

 

Important considerations

 

An important factor in site acquisition is awareness of any legal interests other parties may have in the site (e.g. leases and mortgages), which can inhibit both acquisition and site development.  It is also crucial to understand the future development potential of a site, including earning potential, ongoing development of the site’s surrounds, as well as any environmental issues which may affect the value of the site.

 

Due diligence

 

Property acquisition for development purposes requires expert due diligence to be undertaken to mitigate risk.  Our extensive knowledge of the local area puts our solicitors in an ideal position to carry out thorough due diligence on proposed sights.

 

We understand the tight-timelines and often high-risk nature of property development.  Our teams collaborate efficiently and carry out each step in the process meticulously.

 

Overages

 

Contracts for the acquisition and disposal of land can also include conditions on the sale or purchase of the property – these can range from access to the property post completion to the matter of overages.  An overage provides a vehicle for the seller of any land to share in an increase in the value of the property post completion.  These can be complex provisions. Our commercial property team will explain everything in practical terms and limit your liability through robust negotiation, if required.

 

To find out more about how we can advise you on site acquisition and disposal, please fill in our contact form, or phone our Truro office on 01872 241414.

Commercial Lease Agreements

We advise clients on all legal aspects of commercial leases whether you are a landlord or a tenant.  Having advised generations of landlords and tenants in Cornwall and beyond, we understand the local intricacies of landlord and tenant relationships and the importance of drafting robust commercial leases to ensure our client’s commercial interests are protected.

 

Entering into a commercial tenancy agreement

 

If you are a landlord or tenant, to avoid misunderstandings which can lead to costly disputes, our commercial property solicitors will take the time to meet with you to understand your business needs and long-term plans and will then draft or negotiate a suitable commercial lease.

 

Factors we ensure are covered in the tenancy agreement include:

 

  • The intended use of the premises
  • Any applicable service charges and to what extent the tenant is liable for renovations
  • The length of the tenancy and rights to renew or cancel the lease
  • The rent amount and deposits required, along with a clause relating to rent review (how often they will be conducted and the formula used to set the new rent)
  • Rights and obligations regarding repairs and insurance
  • Break clauses
  • Terms concerning alterations to the property

 

Our commercial property team can draft lease agreements and give advice on the agreement you are proposing to sign.  Awareness of your rights and obligations will assist in avoiding disputes during the course of the lease, which can deprive you of productive time and profit.

 

To find out more about how we can advise you on a tenancy agreement, please fill in our contact form, or visit our Contact Page to find the Nalders office which is most convenient to you.

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Nalders Solicitors is a trading name of Nalders LLP and is a Limited Liability Partnership registered in England and Wales (LLP No. OC354499). We use the term partner to refer to a member of Nalders LLP. A list of the members may be inspected at our registered office: Farley House, Falmouth Road, Truro, Cornwall. TR1 2HX. Nalders LLP is authorised and regulated by the Solicitors Regulation Authority No. 538003. Resolution Accredited Specialist. We will not accept service by electronic mail. VAT Registration No. 131 8555 74