How Reviewing Your Lease Can Save You Money and Protect Your Business in 2025
The start of the year is the perfect time to assess your lease and ensure it supports your business goals. Addressing these key areas now can save you time, money and stress later.
Understanding Critical Lease Dates for a Smooth Lease Renewal
Knowing your lease's critical dates is crucial to avoid costly mistakes and ensure flexibility during renewals or negotiations. Stay ahead by marking key deadlines and taking action early.
1. Critical Lease Dates
Ensure you know your lease's critical dates. Missing a break option or not preparing for a lease renewal whether under the Landlord and Tenant Act or not can lead to financial consequences or limited flexibility.
Take Action: Add these dates to your calendar now and set reminders at least six months in advance to allow time for negotiation or planning.
2. Notice Deadlines
Notices for exercising break clauses or lease renewals must comply with strict deadlines and formats. Mistakes can render them invalid.
Take Action: Diarise carefully and seek legal advice to draft or review notices to ensure they meet all contractual requirements.
3. Rent Reviews
Landlords may propose increases, but these are often negotiable if you can demonstrate market trends or property issues that justify lower rates or the precise provisions of the lease provide for certain assumption or disregards.
Take Action: Gather evidence of comparable rents in your area and consult a surveyor to negotiate your case.
4. Deferred Rent-Free Periods or Stepped Rent Increases
Deferred rent-free periods may occur this year, which could reduce your outgoings whereas fixed rent increases can increase costs.
Take Action: Check your lease to avoid missing these and review your rent invoices to ensure landlords charge you correctly.
5. Aligning with Your Business Plans
Are you planning to expand or reconfigure your space? Check if your lease allows for alterations or changes in use.
Take Action: If restrictions exist, discuss options with your landlord or consider alternative premises that might better suit your goals.
6. Rateable Value Appeal
If your rateable value appears higher than comparable properties, appealing could lead to significant savings.
Take Action: Research recent appeals in your area or engage a professional to assess whether an appeal is worth pursuing.
Taking the time to review and address these areas now ensures you’re proactive, not reactive. From negotiating better terms to avoiding costly oversights, a little planning goes a long way.
If you’d like expert help navigating your lease, we specialise in acting on behalf of occupiers of commercial property and we’re here to assist. Get in touch to ensure your property supports your success in 2025 and beyond:
Contact Simon Harper, Head of Tenant Advisory
Direct Line: 01494 689614
Mobile: 07801 109649
Email: SRH@jaggardmacland.co.uk