| Businesses are being warned to avoid tempting but | | | | something goes wrong at a later stage" |
| potentially costly shortcuts in commercial property | | | | "Also, the code is standardized but every property is |
| leases. The advice comes following the publication of a | | | | different. A commercial property lawyer would able to |
| new stronger code of practice that includes a | | | | provide specialist advice on each individual scenario |
| step-by-step guide for tenants to negotiate a lease. | | | | and know to look for anything unusual in the lease." |
| Leading city law firm, Hegarty Solicitors, welcomes | | | | Negotiating Yourself; A False Economy |
| thecode of practice, but says it is not a substitute for | | | | He continued, "When people are starting up we know |
| expert legal advice that can often secure substantial | | | | that every penny counts, and they might think they will |
| savings for businesses and anticipate issues that arise | | | | save money handling the lease themselves. A |
| years after a lease is signed. | | | | commercial property lawyer is really like an insurance |
| New Government Backed Code | | | | policy. We are highly experienced at negotiating leases |
| The new 'Code for Leasing Business Premises' that | | | | and can often obtain a better deal than they could |
| was launched in March 2007 by Housing Minster | | | | themselves. The savings they could make can dwarf |
| Yvette Cooper, has been published to clarify the | | | | the legal costs involved, and they have peace of mind |
| process and aims to assist new businesses that are | | | | knowing they are fully aware of their rights and |
| new to negotiating leases for shops and offices. | | | | commitments in the lease." |
| Commercial Property Partner Richard Hegarty says | | | | The new code suggests that landlords may not want |
| businesses might be tempted to try and handle | | | | to tie tenants in for lengthy periods. Richard says that |
| negotiating the lease themselves, but it is their lack of | | | | when a company is unsure of it's future, perhaps |
| experience that makes them more vulnerable, and | | | | because it is new or in an unstable market it can make |
| they need to realise the importance of using | | | | sense to have a shorter lease period. However, many |
| experienced property lawyers. | | | | other businesses prefer to have the security of |
| Richard explained, "The new code is not compulsory | | | | knowing they will not be looking for other premises or |
| but is regarded more as a basis for negotiation rather | | | | incurring moving costs in the near future. |
| than a blueprint for a lease." | | | | "When you are busy running a business the last thing |
| "I would strongly recommend that anyone entering into | | | | you want to contend with is the pressure of having to |
| lease negotiations takes expert legal advice. The code | | | | find new premises. The length of a lease is very |
| is still quite complicated, and businesses should take | | | | important, and a commercial property lawyer would be |
| into consideration the time they want to spend trying to | | | | able you help you make a decision to suit you and |
| understand the lease, and what happens when | | | | your business," commented Richard. |