Leasing property rather than purchasing it allows businesses to retain working capital to fund their primary enterprise.
Because leases are so common, they are frequently the subject of costly disputes.
Prevention is better than cure and one of the best ways to avoid your business coming into a dispute over a lease is ensure that the initial document is drafted by a lawyer who is mindful of the potential for disputes to arise.
Law firms like Everingham Solomons encounter a lot of disputes over lease agreements which have been drafted without the assistance of a lawyer, so we’ve developed a keen eye for spotting the type of risks that should be anticipated at the outset.
People immediately turn their mind to the obvious issues like the length of the lease and the rent payable, but they should consider less obvious issues, like:
- who will be responsible for any repairs to the premises during the term of the lease and whether there are to be contributions between the parties for expenses relating to the land;
- if it’s not immediately obvious, what legal access the lessee has to premises;
- in addition to the lease of land, whether the lessor grants any licences to the lessee, say for the use of vehicles, or to display signage
- who will maintain insurances for the building, public liability and any chattels that the lessee is licenced to use;
- whether there will be rental increases each year and whether there are to be any non-monetary contributions made between the parties;
- how the lessor will secure its rental payments if the lessee defaults, or in the case of a company lessee, if it becomes insolvent;
- whether the rights acquired by the lessee can be assigned to someone else, or whether the premises can be sublet.
Whether you are negotiating to enter a lease, or are in difficulty because of one, Everingham Solomons has the expertise & experience to assist you because Helping You is Our Business.
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