Is A Solicitor Required For A Commercial Lease?
A solicitor is not legally required to act on behalf of a landlord or tenant for a commercial lease. However, it is highly recommended due to the process being a legally binding contractual document.
Explained
Whilst not being a legal requirement here in the UK, most property professionals would heavily advise any ingoing tenant or acting landlord to hire a lawyer to create or review a commercial lease.
A commercial lease is a contractual obligation upheld by both landlord and tenant, and requires a degree of expertise to interpret common clauses. With little to no experience in commercial property leases, it is very common for businesses or individuals to sign a commercial lease without understanding their entire obligation.
A commercial solicitor is recommended in all cases as they have both relevant experience and education in drafting commercial lease documents and delivering clear, concise advice to clients regarding the full scope of their tenant obligations.
Experience
For first time tenants, some clauses within a commercial lease may seem uncommon or irrelevant to their obligation as a tenant.
A significant issue which arises amongst tenants entering their first lease, is the responsibility to cover the insurance for a property.
Most commercial landlords will cover the annual fee for the property insurance and re-charge the cost amongst tenants. This almost always causes issues for first time tenants as the responsibility is typically on a landlord – particularly with residential property.
A commercial solicitor can actively avoid this disagreement from ever occurring by advising their tenant of the structure and typical format of a commercial property lease.
Multiple this issue across over 45 clauses within a standard commercial lease, and a commercial solicitor can save both time and money if they are instructed to act on behalf of a tenant.
Requirement
To conclude, you are not required to use a commercial solicitor for any transaction or tenancy in the UK, yet most professionals would highly recommend using one.
Shepherd Commercial – the leading commercial property agency in Birmingham, has worked alongside over 200 commercial solicitors in our 25 year history. Many of whom are established and renown for their leasehold expertise on specific asset types such as retail or industrial.