Commercial Property Conveyancing FAQs
We truly understand the legal challenges that accompany real estate and commercial property transactions.
So, we thought we’d share with you all of the FAQ’s we often get asked…
1. What does it mean to have a lease that is inside the Landlord & Tenant Act 1954?
Having a lease that is “inside” the 1954 Act means that the tenant will have a right to automatically renew the lease and remain in occupation of the premises upon the expiry of the old lease, with the landlord having only a limited number of grounds to object.
2. What does it mean to have a lease that is outside the Landlord & Tenant Act 1954?
If the lease is outside the Act, the lease ends automatically at the expiry of the contractual term. The tenant has no automatic right to renew the lease.
3. What is an authorised guarantee agreement?
An authorised guaranteed agreement (“AGA”) is an agreement where the outgoing tenant enters into an agreement guaranteeing that the incoming tenant (hereinafter referred to as the assignee) will observe and perform the covenants in the lease.
If you enter into an AGA, you are guaranteeing any future breaches of covenant under the lease by the assignee. So, in the other words if the assignee fails to pay rent, the landlord has the option to demand payment from you or require that you take a new lease for the remainder of the term of the lease.
4. How do I sublet my business lease?
Firstly, check if your lease allows it during the term of your lease. Some leases allow subletting part of the business premises, others allow subletting of the whole premises.
Where subletting is allowed, you will likely need your landlord’s consent. We can advise you on how best to do this. The landlord may well charge a fee for consent.
A sublease will need to be prepared between yourself and the new subtenant.
5. Do I need to pay Stamp Duty Land Tax on a commercial Lease?
Your solicitor will be able to help calculate the Stamp Duty Land Tax for you. This is done by considering the length of the Lease term and the rent per annum.
Choosing the right Commercial Property Conveyancing Solicitor
Buying or selling a Commercial Property can be complex enough without the day-to-day pressures of running a business. This is why it’s really important to instruct an experienced Commercial Property Conveyancing Solicitor.
Our Commercial Property Conveyancing team are specialists in their field and are known for being excellent communicators and our clients are our number one priority. Contact our expert team today on 01525 378177 or email email@example.com.
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