Leases
Crossmans can assist you in your taking on business premises whether by freehold or more usually leasehold.
Purchase of commercial premises even though leasehold may either be on the basis of the purchase by way of premium of a pre-existing lease or by the taking on of a new lease.
The purchase of an existing lease is known by the term "assignment".
Existing leaseholders may be in a position to under-let, that is to say to grant a tenancy within their own tenancy of either all or part of the premises and so under leases or sub-under leases are quite common and provide their own complexities in law.
To some extent the taking on of commercial property is similar to residential conveyancing but there are distinguishing features, particularly if there are special requirements for the premises in the nature of the business use.
Another major difference is the implication of the Landlord & Tenant Act 1954 which provides statutory protection to any person who occupies the premises for the purposes of their business for at least six months. The occupation does not necessarily have to be by way of a tenancy if at the time of consideration a tenancy has come into effect. Once the Landlord & Tenant Act 1954 is in place, then the tenancy/lease will continue until terminated under a set of procedures laid down by the Act which generally speaking require a special form of notice served either by the Landlord or Tenant. This has the effect of terminating the tenancy, not earlier than the date on which it would come to an end anyway under its own contract, but in respect of which there must be not less than six months nor more than twelve months notice given.
The Tenant is then in a position to apply for a new tenancy from the Court. There are very important time limits involved and a Tenant who receives a Section 25 Notice under the Landlord & Tenant Act 1954 terminating his business tenancy should see a professional adviser such as we at Crossmans immediately. This is because within TWO MONTHS after receipt of the notice in question the Lessee must, if rights are to be retained, give a counter notice to the Landlord indicating that he wishes to apply for a new tenancy. WITHIN FOUR MONTHS after service of the notice (but not earlier than two months) he must apply to the Court if an agreement has not been reached between him and the Landlord for the terms of the new tenancy. The new tenancy will be issued on broadly similar terms to the original, at an appropriate market rent. It is possible for the Landlord & Tenant Act 1954 to be excluded at the outset of the tenancy.
Come to Crossmans if any assistance is needed in relation to your commercial leases and/or issues revolving around the Landlord & Tenant Act 1954.