FAQs

Before acquiring commercial property, it is important to assess the legal, financial, and practical risks connected to the investment. Key considerations include:

• The condition of the property
• Existing tenant leases
• Rental income and arrears history
• Repair obligations
• Planning use restrictions
• Environmental issues
• Financing arrangements
• Future redevelopment potential

For example, an investor may purchase a retail unit expecting strong rental returns, only to discover the lease allows the tenant to terminate early or places major repair liabilities on the landlord.

We can assist by:

• Reviewing title documents and leases
• Investigating rights, restrictions, and planning issues
• Advising on lender requirements
• Identifying hidden risks before exchange of contracts
• Negotiating favourable contract terms

Early legal advice can significantly reduce costly surprises after completion.

In commercial property transactions, the lease is often the most valuable part of the investment because it governs the income stream and responsibilities between landlord and tenant.

Important lease terms include:

• Length of the lease
• Break clauses
• Rent review provisions
• Repairing obligations
• Service charges
• Use restrictions
• Assignment and subletting rights
• Rent arrears provisions

For example, a landlord purchasing an office building may discover that tenants are contributing very little towards repairs under the lease, leaving the landlord responsible for substantial maintenance costs.

Another investor may inherit a tenant with a rolling break right that affects the property’s future value and mortgageability.

We can:

• Review and report on lease terms
• Identify financial and legal risks
• Negotiate amendments where possible
• Advise on enforceability and landlord protections
• Assist with lease renewals and negotiations

Understanding the lease properly is critical before committing to a purchase.

Many commercial investors choose to purchase property through a limited company or Special Purpose Vehicle (SPV), although the correct structure depends on your investment strategy, tax advice, and funding arrangements.

Potential advantages of company ownership can include:

• Asset protection
• Tax planning flexibility
• Easier joint ownership arrangements
• Separation of business liabilities
• Long-term succession planning

However, company ownership may also involve:

• Additional accountancy and compliance obligations
• Director guarantees
• Different lending requirements
• Increased administration

For example, several business partners acquiring a warehouse portfolio may use a company structure alongside a shareholders’ agreement to regulate ownership, decision-making, and future exits.

We can assist with:

• Company formation
• Shareholder agreements
• Joint venture agreements
• Property acquisition structuring
• Personal guarantee advice
• Refinancing transactions

Legal and tax advice should always be coordinated before deciding on ownership structure.

Commercial landlords regularly encounter issues relating to tenants, lease compliance, repairs, and income recovery.

Common problems include:

• Rent arrears
• Tenant insolvency
• Disrepair disputes
• Service charge disputes
• Breach of lease covenants
• Unlawful property use
• Dilapidations claims
• Vacant property management

For example, a landlord may face difficulties if a commercial tenant stops paying rent following financial difficulties, or where a tenant leaves significant damage at the end of the lease term.

Another common issue arises where service charge provisions are poorly drafted, making it difficult for landlords to recover maintenance costs.

Proactive legal management can help preserve rental income and reduce long-term exposure.

As a commercial portfolio grows, legal support becomes increasingly important for managing risk, maintaining profitability, and facilitating future expansion.

Investors commonly require assistance with:

• Portfolio acquisitions and disposals
• Commercial lease negotiations
• Refinancing and restructuring
• Asset protection
• Development opportunities
• Joint ventures and investor arrangements
• Succession and exit planning

For example, an investor who initially purchases a single retail premises may later acquire industrial units, office space, or mixed commercial developments requiring more complex management structures and refinancing arrangements.

We can provide ongoing strategic support by:

• Managing transactions efficiently
• Reviewing and negotiating leases
• Advising on refinancing and lender requirements
• Assisting with disputes and enforcement
• Drafting investment and partnership agreements
• Supporting long-term growth strategies

Regular legal reviews of portfolio documents and tenant arrangements can help identify issues early and protect investment value.