Opening a Retail Business in the UK: What you Need to Know | Page 5

Opening a Retail Business in the UK: What you Need to Know  Insurance. Who is responsible for insuring the property? In some cases, you (the tenant) may be directly responsible. On other occasions the landlord may take out the policy but ask you to foot the bill. (On some occasions, it might even be included as part of the service charge). Again, this can be a substantial cost, so it pays to check it in advance.  Repairs. Will the landlord carry out repairs, or will you be held responsible for doing so? As with the insurance, it may be that the landlord will arrange for repairs, but ask you to pay the invoice. Note: as part of this cost, it’s important to establish what state of repair the premises are in, to avoid being billed for poor repair that already existed before you took out the lease. Legal documentation can be almost incomprehensible unless yo u’ve got experience in dealing with it. It’s therefore a good idea to obtain professional advice. The Law Society’s ‘Find a solicitor’ tool is an ideal starting point. Concluding a lease A commercial property lease will usually continue until the agreed end date. However, it’s possible to insert a break clause into the contract if the landlord will agree. If the break clause requirement is met, then you must give the landlord two months’ notice that it is being used. The landlord, however, can only use the clause if you agree. There are some other circumstances in which a lease may be ended early. These include if:  The landlord agrees to the cancellation.  The lease is passed onto another party (though in some cases the landlord will want a new guarantee provided if this is the case).  Sub-letting is permitted. Of course, where sub-letting is allowed, the original tenant will still be responsible for the rent being paid. Fixed-term tenancies A fixed term tenancy means that the lease is automatically concluded when the end date is reached. If you choose to stay on past this term, then you mark a ‘continuing obligation’ to pay the rent, and will have to provide 3 months’ notice before you can leave. Commercial Property – Industrial Units, Office Space to Rent 5