Commercial leasing – landlord or tenant
Commercial leasing is common in Scotland with the main type of lease being a Full Repairing and Insuring (FRI) Lease. In this type of lease, the tenant has only to pay rent, but also have to pay for the upkeep of the property. The tenant has also to insure it whilst never enjoying ownership. Landlords are clearly keen on this type of lease because it means the property is maintained by the tenant.
It’s also possible to step into or out of a lease through a process called Assignation. A tenant can assign a lease to a new tenant and relieve itself of the lease obligations. Those acquiring a lease by way of assignation step into the tenant’s shoes.
Entering into a new lease
If acting for the landlord, we seek to ensure that the lease is as favourable to the landlord as possible. As it’s usually the landlord’s solicitor who prepares the lease, they have the advantage of including everything they want. from a tenant’s perspective, it’s important to be aware of the obligations contained in the lease. The tenant needs to be aware of how these can impact during as well as when the lease comes to an end. We take the view that everything in the lease is negotiable. We will work on behalf of either the landlord or the tenant to ensure the lease is as favourable for our client as possible.
Taking an assignation of a lease
To take an interest in an existing lease, you will usually do this by means of an assignation. That means the tenant will assign the lease to you. The landlord will need to consent to the assignation and may impose conditions. There may also already be conditions in the lease that trigger on assignation. Whether you’re a tenant wishing to take a lease on assignation or a landlord being asked for consent, we’ll guide you through the entire process.
Whilst leasing may be very common in Scotland, it pays to ensure the lease is favourable to you – irrespective if you’re landlord or tenant. We can help you with the negotiations involved in agreeing the terms of the lease.
Do you need help with Commercial Leasing?
Whether you’re the landlord or the tenant, we can help