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1. Top 8 Points You Need To Consider While Entering a New Commercial Lease or Buying an Existing One. Demise It is important to clarify which areas of the building you will occupy. An existing lease will set out the extent of the premises, and you must be satisfied that you will take over all of the land that you are expecting to. Similarly, when you are taking a new lease, you must satisfy yourself that the Landlord is proposing to grant you a lease of all the land you will need. Rent You will want to know how much the rent is, when it is due, and if there is a rent review. You should also check whether the rent (and other sums owing under the Lease) are subject to VAT. Term If you are buying an existing lease, it may include the right to extend the lease at the end of the term. It is important that you understand whether a new or existing Lease is inside or outside the security of tenure provisions of the Landlord and Tenant Act 1954. When negotiating a new lease, you should consider whether you will need (or want) the right to renew it at the end of the term. Permitted Use You should consider what you want to use the property for and then check that the lease permits this. If the permitted use in an existing lease does not match your intended use, you will need to check if a clause in the lease allows you to change the permitted use, and check with the local authority that they would agree to such change. Repairs If the Lease is for the whole of a building, you likely will be responsible for repairing the whole of the building (including structural parts like roof, foundations, etc.). If you are taking (or buying) a lease of part of a building, it is likely that you will be responsible for the repair of the interior parts of the property and that the Landlord will be responsible for the repair of the structure. Alterations You will want to note whether you are permitted to make alterations to the property and if this affects your plans for the property. If you are buying an existing lease, it would be helpful to find out whether previous tenants have carried out alterations already – you may need to remove the modifications at the end of the term. Transfer or Underletting Most commercial leases allow tenants to transfer their lease or underlet to a third party, but only with the Landlord’s prior written consent and subject to certain conditions. You should check what is permitted under the lease. Insurance Landlords often insure the property, and tenants reimburse the Landlord for the policy premium. Again, you should check the lease as every lease is different.