Most successful businesses operate from a premises of some kind and taking a commercial lease can be more complex than you think. Whether you are moving into your first space or expanding into new premises, it is important to ensure the legal terms work for you both now and in the future.
Heads of terms vs the lease itself
At the outset, you will usually agree “heads of terms” with the landlord. These outline the main commercial points such as rent, term length and any break options. While these can appear straightforward, they are not legally binding and often don’t reflect the full detail of the lease.
The lease itself is a far more detailed document and it is here that the real legal and practical implications arise.
Key provisions to watch closely
There are several areas within a lease that can have a significant impact on your business:
- Repairing obligations – are you responsible for internal repairs only, or the entire building?
- Service charge liability – what costs will you be contributing towards and are they capped?
- Alterations – can you fit out or adapt the premises to suit your needs?
- Assignment and underletting – how easy is it to exit or share the space if circumstances change?
- Rent review provisions – how and when can the rent increase?
- Break clauses – do you have flexibility to terminate early?
- Security of tenure – do you have a right to remain in the property at the end of the lease?
These are often overlooked early on but can materially affect both day-to-day use and long-term flexibility.
Why early legal advice matters
Bringing legal advice in at an early stage can help you:
- Identify potential risks before you commit
- Ensure the lease reflects what was agreed commercially
- Avoid costly renegotiations later in the process
- Maintain flexibility as your business evolves
We regularly advise businesses on commercial leases from start to finish. This includes reviewing heads of terms, negotiating lease provisions and providing clear, practical advice on the implications of the document.
If you are considering taking a lease, getting the right advice early can make a meaningful difference to the outcome.
