Commercial Property

Commonly asked questions

What is Commercial Property?

The term “commercial property” normally refers to buildings or land of a business nature which are intended to generate profit. Commercial property can include office buildings, warehouses, undeveloped land, shops, restaurants etc. Our commercial property solicitors have a broad range of expertise in commercial property and can assist you with commercial property sales, purchases and leases, development, investment, leasehold management and planning matters.

What are the main costs in buying or leasing Commercial Property?

The main costs are usually legal fees, search costs, stamp duty land tax, land registry fees and surveyors’ costs although there may be other ancillary costs. Speak to one of our commercial property solicitors who will be able to give you an estimate of costs for your particular transaction.

What is an “FRI” lease?

“FRI” lease means full repairing and insuring lease whereby the tenant bears the costs of repair and insurance. Our commercial property solicitors can review your lease with you to clarify whether it is an FRI lease and the potential costs this may entail.

What are the most important terms to look out for in a lease of a business premises?

The whole lease should be reviewed carefully, particularly the rent and service charge provisions, the term of the lease, any rent reviews, repair obligations, terms of assignment and underletting and any break clauses. Our commercial property solicitors are well-versed on lease provisions and can advise you on the effect of the lease on your business and your short-term/long-term commercial objectives.

What is a “contracted out” lease?

Generally-speaking, a commercial lease will be protected by the Landlord and Tenant Act 1954, which gives tenants a statutory right to renew their lease at the end of their term (often referred to as “security of tenure”). Where the lease has been “contracted out,” the lease no longer gives this protection. Speak to one of our commercial property solicitors on the impact of “contracting out” provisions on you as the tenant.

I recently purchased a Commercial Property and would like to sublet it to a tenant. What should I be doing?

You first need to check the lease to ascertain whether there are any restrictions or conditions in respect of subletting the property (for example, do you need to obtain landlord’s consent?). Our lawyers in the commercial property team can help you interpret the lease provisions and clarify your position.

Is it difficult to change the use of my Commercial Property?

Being able to change the use of the property gives the tenant greater flexibility. However, prior to submitting any application to the Council, you need to establish whether planning permission is required (together with any other consents). Our commercial property team regularly deal with planning matters and can advise you as to the appropriate steps to take in this regard.

What is permitted development?

“Permitted development” rights enable you to make certain changes to buildings without having to apply for planning permission as the planning permission is “deemed” granted. Prior approval from the Council may still be required. The law in relation to permitted development is constantly changing and so our commercial property solicitors are happy to discuss your building proposals with you taking into account any recent changes in the law.