How am I committed to a property?
Commercial Property Rental
Detailed explanations of all aspects of commercial property rental can be found on the Business Link site
Choosing Your Business Premises
You can find information about all features of choosing your business premises on the Business Link site
A property can be occupied under three general agreements as follows:
| Lease or Leasehold |
This is a legal document normally produced by the landlords
solicitor which allows another person or company to occupy a
property. This will run for a period of years at an agreed rent and
will normally provide protection to both parties under the Landlord
and Tenant Act.
Generally the minimum period is for three years
although the term may be longer or shorter.
The lease will set
out the obligations of both parties, in particular, repairs, service
charge and the permitted use of the property.
Both parties are
legally committed to the lease for the period of the lease.
|
| Licence |
Similar to a lease however a licence is normally for a period of
months. It will include the obligations of both parties. This may
exclude protection under the Landlord and Tenant Act preventing the
tenant to stay in occupation after the expiry of the term.
|
| Freehold |
Complete ownership of property. |
Before committing yourself or company to any of the above
agreements you should seek legal advice.
There are a number
of issues to address before you decide which is best suited to your
individual needs:
- Is your business stable and able to fund the freehold purchase of a
building?
- Do you want flexibility to move to larger or smaller property to
cope with an expanding or diminishing business?
- Are you personally or your business able to sustain a commitment to
a lease or licence for a period of months or years?
DISCLAIMER
The information contained in the Mustard.uk.com Premises section is intended as a guide only. It does not set out to provide comprehensive details, we strongly recommend your seek professional advice before entering into any contractual obligations.
Mustard.uk.com and the authors of this document cannot accept responsibility for information contained in or omitted from the Mustard.uk.com Premises section.
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