Simon Jackson, Head of Commercial Property at Shulmans, answers some of the questions you may have:
I currently occupy a business property as a tenant and the lease is not due for renewal for some time. Do I need to worry about this?
It is crucial to plan ahead. For example, if your lease is due to end within the next 3 years we would advise thinking about what your ongoing and future business requirements are, and whether your current property will be suitable in the long term. Even if you are reasonably happy to stay put, the generation and communication of a plan that demonstrates that you are considering other options may generate significant value in terms of getting the best deal from your current landlord.
It is also important to be aware of your repairing obligations under your lease. The cost of complying with these obligations can be significant (even when you think that the property is in a no worse state than when you originally moved in). We can help you manage the risks associated with these obligations.
I am a commercial property landowner and I would like to ensure that my tenants continue in situ and that I don’t have to go to the bother of finding new tenants. Is there anything I can do to influence this?
Yes. It is important to communicate with your tenants well in advance of the expiry of the lease. For example, do your tenants have plans to grow their business? Would refurbishment work influence their decision to stay? Do they need more space and can you acquire that space in order to maintain the relationship with them? In addition to providing legal advice, we are plugged in to a network of property professionals who can identify property for acquisition and rent (for sub-let, for example).