Commercial Property

If you’re involved in purchasing, selling or leasing commercial property, as an owner, occupier, investor or developer, you must be properly advised.

By building a close individual working relationship with our clients, we aim to understand your business and your commercial ambitions.

Our team adopts these objectives, providing clear commercial advice and a personal service which will really move you.

We can help you with:

  • Corporate property finance
  • Disputes and property litigation
  • Estate development and plot sales
  • Estate management
  • Landlord and tenant issues
  • Leases and lease extensions
  • Property development
  • Sale and leaseback
  • Sales and purchases
  • Secured lending

Contact us if you would like a free initial appointment to discuss any of these issues.

Our Commercial Property team have been recommended in the 2020/21 Legal 500, which is an independent legal directory.

 

Commercial Property in Bournemouth, Poole, Christchurch, Ringwood and the New Forest

We have offices in Christchurch. Our Commercial Property Team also covers Bournemouth, Poole, Ringwood and the New Forest, with the majority of our clients located in the Bournemouth and Poole area.

If you live in Bournemouth or Poole:

Please do not be put off by our location and please do not hesitate to contact us. Our commercial property solicitors will be very happy to speak with you.

I have been immensely impressed with your efforts on this difficult project - I am boring people with tales of your excellent service!

Our commercial property solicitors’ expertise

Commercial property is likely to be fundamental to the operation of your business. Whether you use commercial property for business premises, you are a developer, or a property investor, we have the skills and expertise necessary to help you succeed.

We regularly work with occupiers, commercial landlords, small to large scale developers, and investors across the Dorset area. Although our offices are based in Christchurch and Ringwood, we attract individuals and businesses from Bournemouth, Poole, the New Forest and beyond.

Our clients range from sole traders and individual investors, to small and medium enterprises, to large regional and national corporations. We have experience handling transactions involving all types of commercial property, including:

  • Retail space
  • Offices
  • Warehouses
  • Cafes, restaurants and pubs
  • Leisure facilities and gyms
  • Mixed use

Whatever your purpose for dealing with commercial property, we approach all matters with a dynamic and proactive attitude. As well as our in-depth legal knowledge, we have decades of combined experience and a high level of commercial awareness.

We are proud to be able to offer an end-to-end commercial property service that caters to all your needs. From acquisition, to financing, to planning, to disposal, our consistent service and reliable advice adapts as your business grows and evolves. Our commercial property lawyers are known for building strong, ongoing relationships with businesses based on creative vision and shared goals.

Our commercial property team are also more than happy to assist with one-off matters or to provide general advice about your legal rights and responsibilities.

Legal advice for commercial property disputes

We have a wide range of experience supporting individuals and businesses in disputes concerning commercial property. We utilise strong negotiation skills to find resourceful solutions to issues such as:

  • Landlord & tenant disputes:
    • Dilapidations
    • Rent arrears
    • Service charge disputes
    • Forfeiture
    • Rent review disputes
    • Renewals
    • Breach of covenant
    • Break clause disputes
    • Assignment and sub-letting
  • Planning disputes and change of use
  • Adverse possession and trespass
  • Development disputes
  • Rights to light, rights of way and other easements
  • Option agreement disputes
  • Overage disputes
  • Insolvency

We always aim to resolve disputes as efficiently and cost-effectively as possible while minimising disruption to the operation of your business and any negative publicity.

Our other services for business

We can also help with a wide range of associated corporate and commercial matters, including:

Our commercial property fees

The viability of your business strategy will be a priority for us at all times. We are happy to discuss flexible fee structures with you that balance your budget with your commercial property requirements. Give us a call for more information about our fee structures and possible funding arrangements

Ask us at Frettens

Here's some frequently asked questions on commercial property, if you need to ask us anything more please get in touch using the form on the right.

Q. What are Minimum Energy Efficiency Standards (MEES) and who do they impact?

MEES set minimum energy efficiency standards which must be met for let properties. The regulations do not apply in respect of property sales. They affect both landlords and tenants of proposed, new and existing leases. They apply to residential and commercial properties, however this article focuses on commercial property only.

The minimum standard is a valid Energy Performance Certificate (“EPC”) rating of E. Ratings of F and G are below the minimum. Where the property falls below the minimum it is known as a “sub-standard property” and the MEES regulations apply.

Q. When do Minimum Energy Efficiency Standards come into force?

1 April 2018 – from this date a new lease cannot be granted for a sub-standard property unless:-

  1. an exemption applies;
  2. all relevant energy efficiency improvements have been made; or
  3. the lease is not caught by the regulations.

Q. What should I be doing as a landlord?

Landlords should consider:-

  • Improvements – if the property is sub-standard, have all relevant energy efficiency improvements been made?
  • EPC’s - the timing of an EPC may be critical if the result is that the property is sub-standard. To retain control, a landlord may consider placing restrictions on a tenant’s ability to commission an EPC. It may also be appropriate to firstly obtain a draft EPC.
  • Foresight – planning ahead and also considering that in the future the minimum standard may be increased.
  • Relevant date- it is important to determine which relevant date applies. This is particularly important for extensions or lease renewals where the tenant has remained in occupation.
  • Improvement costs– the cost of relevant energy efficiency improvements where the property is sub-standard.
  • Non-compliance – may result in enforcement action (including fines and public exposure) and a decrease in the property value. As an existing lease will continue, it may also impact matters such as rent review.
  • Onerous lease – the rental amount a tenant may be willing to pay may decrease if the lease clauses are too onerous. 
  • Consents – are any third party consents required such as a lender or head-landlord?

Q. What should tenants be doing?

Tenants should consider:-

  • Sub-standard – if the property you are letting is sub-standard the landlord may be exposed to enforcement action. As the lease itself will continue, rent should be paid and all covenants continue to be observed. 
  • EPC’s – there may be situations where a tenant would need to commission an EPC, for example on lease assignment, and the lease should reflect this.
  • Improvement costs – does the lease allow the landlord to recover the cost of undertaking relevant energy efficiency improvements from the tenant?
  • Improvement works – does the lease require or allow the tenant to carry out energy efficiency improvement works to prevent the property from being sub-standard?

Q. What is Overage provisions on land?

Overage gives you, as a seller, a second bite of the cherry.  As well as receiving the sale proceeds, overage allows you to share in any increase in value in a property that is realised after the property has been sold.

Overage provisions on land or property can also be referred to as clawback or uplift clauses.

If certain circumstances occur (at some stage after completion of the sale) the buyer makes an additional payment(s) to the seller for the same piece of land.

Q. When should I think about overage?

Overage obligations allow you to sell at the current market value of the property, without having to forgo a share in the development potential of the property when that is actually realised.

If you are selling a piece of land or property and you think there is a reasonable expectation that the land may be redeveloped or that a valuable planning permission may be granted in the future, we would suggest that you think about overage.  That way, you have a mechanism for getting a share of the uplift in value after completion of the sale.

Q. How do Overage payments work?

There are five main elements of an overage clause:

  • Duration
  • What will trigger the payment?
  • How much will the payment be, and how will it be calculated?
  • Will making a payment release the obligation?
  • How will the payment be secured?

Q. How long does Overage last?

In short, the overage agreement will apply for whatever number of years the seller and buyer agree at the outset. There is no minimum period but often the parties will agree a set time period such as ten or twenty years.

The length of time will often depend on the nature of the event which will trigger the payment, and the likely timescale for this to occur.

If the land is being sold to a developer who will immediately apply for planning permission, then a relatively short period of time may be agreed - perhaps 5 years. However, if the land that is being sold may not be available for development for 20 years, a much longer timescale is likely to be agreed.

The overage is often registered at the Land Registry and will attach to the land if it is sold on.  This means future buyers are likely to be caught by the overage as well.

Q. When will Overage payments be triggered?

There is no set rule here.  Overage payments are not standard and different arrangements will apply to each transaction depending on what the buyer and seller agree.

Some examples of circumstances which might trigger an overage payment are:

  1. If planning permission is granted for:
    • - a change of use; or
    • - the construction of another property within the land owned; or
    • - demolition and re-building of a more intensive development.
  2. If the property is sold with benefit of a planning permission but the seller envisages that the buyer may obtain a more favourable or intensive planning permission in the future.

Q. How much Overage will the buyer have to pay?

The overage agreement will specify what is payable.  Sometimes it is a set amount or there could be a formula to calculate the amount payable.  Or you could say a percentage of profit is paid.  Sometimes the amount is linked to an index such as the retail prices index.

Q. Will making an Overage payment release the obligation?

In short, this depends on the clause. Sometimes, a one-off payment will be triggered if a certain set of circumstances are met.

In other cases, the overage sum will be payable each time a certain event happens, i.e. each time a planning permission is granted or each time a property on the development is sold.  You need to be clear about what you are agreeing and what is drafted into the paperwork.

Q. How will Overage payments be secured?

There are a number of ways to secure your overage agreement, including by way of a contract, a guarantee, a charge or a covenant on the title.

The most usual method is to register a restriction on the title to the property and a requirement that upon any future sale, any new owner will enter into a deed with the seller confirming they will comply with the terms of the overage agreement.

Q. What is a break clause for a commercial property?

A clause within the lease that enables you to bring your tenancy to an end before the expiry of the contractual term.