QUICK ANSWER
A commercial lease affects more than rent. Explain how the premises will be used, who will pay for works and outgoings, what approvals are needed and how the business could assign, renew or exit.
Key takeaways
- Describe the permitted use precisely.
- Model rent, outgoings and fit-out obligations together.
- Review options, guarantees and exit routes.
Match the premises to the business
Tell the lawyer the intended activities, operating hours, equipment, signage, staffing and customer access. A broad business description may not be enough if the permitted-use clause or approvals are narrow.
Identify works required before opening and who is responsible for approvals, cost, ownership and removal at the end of the lease.
Calculate more than base rent
Review outgoings, review mechanisms, incentives, security, insurance and repair obligations together. Ask for examples where a formula or estimate is not clear.
- Heads of agreement and latest lease draft
- Disclosure statement and outgoings estimate
- Plans, fit-out scope and approval correspondence
- Proposed guarantors and business structure
Plan renewal and exit before signing
Ask how options are exercised, what happens if a deadline is missed and whether assignment or subletting is permitted. Understand make-good and reinstatement obligations.
Confirm whether retail leasing legislation may apply and whether financial, tax, planning or building advice is needed separately.
TURN PREPARATION INTO A USEFUL SEARCH
Find providers connected to this guide.
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COMMON QUESTIONS
Useful answers before you start.
Is a heads of agreement binding?
It depends on its wording and circumstances. Obtain advice before signing or paying money if you expect terms to remain negotiable.
Who checks council approvals?
Do not assume the landlord or leasing agent has confirmed your use. Ask who will check planning, building and industry approvals.
Can a personal guarantee be negotiated?
Terms may be negotiable. Ask about scope, duration, release and alternatives before anyone signs.