Commercial property is often one of the most significant overheads for a business, typically accounting for a large portion of total expenses. Accessing expert legal advice is essential to avoid costly repercussions as your business evolves. At AQ Archers, a London-based law firm, we offer a range of services to help you navigate the complexities of commercial property matters, including lease negotiations, alterations, repairs and dilapidations, break clauses, tenancy renewals, and rent reviews.

Negotiating a Commercial Lease

When considering a commercial lease as a prospective tenant, it’s important to keep two key points in mind:

1. Lease terms are generally drafted in the landlord’s favour.
2. Landlords typically anticipate negotiation.

Critical terms for negotiation include lease length, rent payments, break clauses, and repair responsibilities. Your negotiating power often depends on market conditions; for example, in a tenant-friendly market with high property availability, you are likely to have greater leverage. AQ Archers can help you secure a lease that aligns with your current and future business needs.

Alterations

Most commercial leases impose restrictions on alterations tenants can make to premises. While internal, non-structural alterations are often allowed with landlord consent, structural or external changes are typically prohibited. Additionally, tenants are usually required to restore the property to its original condition upon the lease’s termination.

Under Section 19(2) of the Landlord and Tenant Act 1927, landlords cannot unreasonably withhold consent for tenant improvements. If your landlord denies consent unfairly, AQ Archers can provide expert legal support to challenge their decision and help you proceed with your plans.

Full Repair and Insurance (FRI) Leases

Landlords often prefer FRI leases, which make tenants responsible for all repairs, including structural and exterior maintenance. Depending on the age and condition of the building, this can be a substantial financial burden. AQ Archers can help you negotiate repair obligations to minimize liabilities, such as limiting responsibility to internal repairs only.

Timescales

Completing a commercial lease typically takes one to two months from the issuance of heads of terms. More complex matters may take longer. At AQ Archers, we ensure regular communication to keep you informed throughout the process.

Key Stages in a Commercial Lease

1. Negotiation and Agreement on Heads of Terms
   Commercial agents facilitate inspections and agree on key terms, which serve as a framework for lease documentation. While not legally binding, heads of terms outline the parties’ intentions.
2. Instruction of Solicitors
   Once heads of terms are finalized, solicitors are instructed to begin the legal process.
3. Anti-Money Laundering (AML) Checks
   Solicitors conduct AML checks in compliance with the Money Laundering Regulations 2017. Timely submission of identification documents helps avoid delays.
4. Request for Draft Papers
   The tenant’s solicitor requests draft lease documents, including title deeds, replies to pre-contract enquiries, and draft lease terms.
5. Due Diligence and Lease Negotiations
   Solicitors review draft documents, conduct searches, and negotiate lease terms, which often takes 2–3 weeks.
6. Report on Lease
   Once terms are agreed, the tenant’s solicitor prepares a detailed report summarizing the lease for approval.
7. Completion
   Upon signing documents, making required payments (e.g., rent or deposits), and dating the lease, the matter is completed. The landlord’s agent releases the keys to the tenant.
8. Post-Completion Formalities
   Post-completion tasks may include registering the lease with HM Land Registry (for leases over seven years), noting easements, and filing a Stamp Duty Land Tax (SDLT) return.

Legal Fees

Hourly Rates

• Mr. M. Asghar Khan (Solicitor): £312.00 plus £62.40 VAT.
• Mr. Alnoor Kassam (Solicitor): £312.00 plus £62.40 VAT.
• Other Caseworkers: £139.00–£204.00 plus VAT (£27.80–£40.80), depending on seniority and experience.
• Please see Solicitors’ guideline hourly rates – GOV.UK for further details on solicitors hourly rates.

Fixed Fees

Fixed fees may apply in certain cases, depending on the complexity and scope of the matter. A detailed fee estimate will be provided upon consultation.

Why Choose AQ Archers?

Entering into a commercial lease is a significant step for any business. Our experienced team is here to guide you through every stage, from negotiating favourable terms and advising on alterations to minimizing repair liabilities. AQ Archers is committed to achieving the best possible outcome for your business.

Contact Us
To discuss your commercial property needs, call us today at 020 7791 3223 or email us at info@aqarchers.co.uk.