Litigation

B P Collins Solicitors: talk to the experts

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A lesson in good practice

02 September 2008

Threats of a recession, a downturn in the property market, the 'credit crunch' and an increase in the litigation culture, have led to a rise in disputes between landlords and tenants. Whether you are involved in the commercial or residential property market, it is now more important than ever to recognise potential problems and keep on top of current legislation.

With this in mind, our property litigation and commercial property teams recently hosted a breakfast seminar to guide commercial agents and tenants through the minefield of new legislation and provided tips on how to minimise losses in these litigious times.

Delegates were made aware of a wide range of topics concerning the common pitfalls of a commercial lease, including dilapidations, security of tenure, renewals, goods left at the premises and unpaid rent, insolvency, service charges and repairing obligations.

We highlighted that any commercial lease, whether being granted or taken, involves good communication, an understanding of the deal and, most importantly, legal awareness. Leases are not all the same and much depends upon the wording of the individual lease, which should be read with care.

In essence, we advise to keep it short and simple. It’s amazing how many times someone tries to draft something clever and it backfires! Some leases are so long that some clauses are virtually duplicated, causing unnecessary conflict and uncertainty. Both parties should also be aware of stamp duty, land tax and VAT and of the best way to structure a deal to make it as cost-effective as possible.

Our twelve commercial property lawyers, assisted by our burgeoning property litigation team, can provide expert advice on how to achieve this more effectively.

Timing is also a crucial factor in any commercial deal, especially where commercial property leases are concerned. The current economic climate gives rise to more uncertainty, with many tenants not wishing to make any commitment until the last minute or wanting short term leases in a hurry.

Speed is essential and it is more important than ever for landlords and agents to maximize occupancy by securing a deal quickly and generating some rental income, especially when capital values are falling. The size of our teams and the breadth of knowledge available at B P Collins ensures we offer a comprehensive service for all types of property and our extensive resources in-house enables us to act quickly, efficiently and effectively.

We help by working with clients as soon as a property is to be put on the market by getting the paperwork ready, taking a pragmatic approach and streamlining procedures.

To learn more about the legal requirements of a commercial lease, request an electronic copy of the seminar notes entitled Commercial Leases: The Good Practice Guide from samantha.howe@bpcollins.co.uk.