Marketplace | Property

The commercial lease agreement is made between the landlord, the legal owner of the property, entitled to grant the Lease, and the occupier (Tenant). It is important to check that no other person has the benefit of rights or restrictions over the property which would impact on the tenant. This is called investigating title. The property needs to have the necessary planning permission to allow the tenant to carry on his business. On completion of the Lease the Tenant will be legally liable to pay Stamp Duty Land Tax. If the Lease is for a term of more than 7 years, it will need to be registered at the Land Registry. Commercial Leases are usually granted for a “fixed term” which means the Lease will start and end on the fixed dates specified in the Lease. The Lease may, however, provide for either party to terminate the Lease at an earlier date; this right is referred to as a Break Right.

An office sharing agreement is an agreement between an owner of office space and another business. It can be used where the provider of the space owns the property or has a lease of the property. This type of agreement does not create a tenancy but a prepaid usage licence to use the provided amenities on a monthly or casual basis. It is a contractual licence. The key difference is that a licence does not grant rights over a defined and fixed area. This agreement provides the sharer with a set number of workstations but does not specify their location. Co-working space owners provide a work environment and generally, office equipment and services characteristic of a typical workplace. The features of such an office space typically include the following: shared space to work, Conference and board rooms that can be reserved or rented on need basis, Wi-Fi, shared printing, copying, faxing and/or scanning facilities, PBX equipment, common kitchens, restrooms and/or lounges…