A Quick Step-by-Step Guide to Commercial Leasing
Leasing a space for your organisation requires a significant investment in time, effort, and money, so it’s crucial to take each step one at a time.
15 September 2021
There are many aspects to consider, and leasing the right space is quite a complex task for many business owners. However, a little knowledge goes a long way when it comes to taking a commercial lease. With this, here is a step-by-step guide to help you throughout the process:
Step 1: Appoint a Solicitor
Once you’ve picked out a space and want to begin commercial leasing, it’s time to contact trusted conveyancing solicitors to provide you with a full range of legal services throughout the rest of the process. They will discuss the terms of business and any vital information about your business to relay to the other party. They will also ask for identification documents and money on account for other essential papers.
Step 2: Agree with the Heads of Terms
The agents who arrange the transaction will prepare the heads of terms, which outline the main points of the deal. These documents are not legally binding but will serve as the basis of the legal contracts that follow.
The heads of terms typically contain the details of both parties, the guarantor’s information (if relevant), the property’s particulars, the lease length, rent payments, deposits, necessary services, and permitted use of the area. Not all deals will have formal heads of terms, but the conveyancing solicitors will have to know what the tenant and landlord have agreed upon.
Step 3: Practise Due Diligence
The landlord’s solicitor will draft a lease based on the agreed heads of terms. They will send it to your solicitor along with the title documents and other relevant paperwork. Your party will have to review and investigate everything regarding the lease. It’s crucial to raise any enquiries and clear up any vagueness in the contracts.
It’s also standard practice to conduct property searches to find out any unaddressed defects. Practising due diligence is an essential part of the commercial leasing process, as it protects you and your organisation from any potential problems that may arise. It may take a couple of weeks to accomplish this step.
Step 4: Reach an Agreement and Sign the Lease
Once everything is in order, it’s time to negotiate and agree upon the lease. The solicitors may continue exchanging and revising the documents until all parties are content with the deal. Afterwards, it’s time to sign the lease and pay all charges.
Step 5: Complete the Process
After the completion of the lease, your solicitor will notify you and will carry out post-completion steps. Depending on the length of the lease, Stamp Duty Land Tax may be payable within 14 days, and it will need to be registered with the Land Registry if the lease duration is over seven years.
Contact Trusted Conveyancing Solicitors Today
The commercial leasing process requires lots of paperwork and a fair amount of time. It can be confusing at first, but with this guide in mind, you can demystify the whole ordeal and ensure that you don’t miss essential steps. Furthermore, your solicitor will also help you each step of the way.
If you’re looking for conveyancing solicitors in Manchester, Conveyancing Expert is here to help. We’ll provide you with expert legal advice and service each step of the leasing or buying process, ensuring that you stay protected and updated. Get a free, no-obligation quote today!