Part 2 – Rights
In the previous article, we spoke about the importance of the demise. However, unless the property is a complete stand-alone unit, just as important will be the rights granted to the tenant. There is no point taking a lease of somewhere if you are not also granted a right of access! A tenant will need other basic rights such as to connect into and use pipes and wires. However, depending on what is agreed between the parties, there may be more specific rights required, for example for parking or to display signage. These should be agreed during the initial negotiations for the lease.
A landlord will want to reserve certain rights as well. Customarily, they will want a right of access to the property for inspection purposes but they may reserve additional rights if required. For example, if the property is part of a larger building, the landlord may need to reserve the right to install scaffolding to carry out works, even if the scaffolding restricts the access of the tenant. The landlord may even need to access the tenant’s part of the property to carry out works, say to a party wall.
It is important that the rights granted and reserved are fully understood as they may limit the tenant’s ability to use the property.
In this series of articles, we are aiming to give you a brief overview of the principal areas covered by a commercial lease. These articles are for guidance only and do not represent legal advice. If you need advice or assistance on leases or any other property concern, please do not hesitate to contact Andrew Rannie, Head of the Property Department for a free initial consultation.
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