Last Updated: 17/03/2025
Leasing a commercial property is a significant commitment, and understanding the terms of your lease is crucial to safeguarding your business. Many tenants unknowingly take on hidden risks and financial obligations, leading to costly surprises down the line.
At EM Law, we provide comprehensive Commercial Lease Reviews that give you clarity on your rights and responsibilities—so you can plan ahead with confidence.
For a fixed fee of £1,000 + VAT, we will analyse your lease and related documents, such as rent deposit deeds and licences for alterations. This ensures that you understand the legal and financial commitments involved before making any major decisions.
Why a commercial lease review matters
A well-structured lease review can be invaluable in many business situations. It can help you:
✔ Accurately record liabilities in your financial accounts.
✔ Identify opportunities to renegotiate costly obligations before they become unmanageable.
✔ Prepare for refinancing or a business sale by ensuring lease terms align with your goals.
✔ Plan your next steps—whether renewing, renegotiating, or relocating.
Beyond a basic commercial lease review
Many tenants assume that reviewing key lease terms—such as rent, service charges, and renewal rights—is enough. However, this basic, tick-box approach often overlooks clauses that could expose you to major financial risks.
At EM Law, we take a strategic approach, much like in-house commercial property lawyers for larger corporations. We don’t just review lease terms—we analyse:
• How the lease aligns with your business needs
• Hidden financial liabilities and risks
• Negotiation strategies to improve your position
To explore how we simplify complex lease issues, read our blog: Lease Advice – Keeping the Legal Aspects Simple.
Common commercial lease traps for tenants
Commercial leases—whether for offices, shops, or other business premises—are often drafted in the landlord’s favour. Many tenants unknowingly take on liabilities far beyond what they originally expected. Here are just a few examples:
1. Service charges: the hidden cost
A common lease clause requires tenants to pay a “fair percentage” of the building’s service charges. This seems reasonable—until you realise:
❗ Your “fair percentage” is 30%.
❗ The building has had no significant repairs in 15 years.
❗ The property has never been professionally managed.
The result? You could be on the hook for repairs and maintenance costs far exceeding your rent—and completely out of your control.
2. Opening hours: who really decides?
Many shop leases include a trading hours clause stating that tenants must remain open during the maximum opening hours determined by the landlord. This might seem standard, but consider this:
If your shop is not in a shopping centre but is the only retail unit in the building, this clause gives the landlord the power to restrict your hours—without reducing your rent.
This is why understanding how commercial lease terms apply to your specific premises is crucial.
3. Indemnity clauses: unexpected liabilities
A standard indemnity clause might require tenants to compensate the landlord for losses arising from any act or omission. But what happens if:
- The landlord’s contractor causes damage to the building.
- The tenant failed to notify the landlord of the issue.
Even if the tenant was only minimally involved, an unamended indemnity clause could make them fully liable for the landlord’s losses.
We explore similar hidden risks in this blog: The Office Lease – Risks and Opportunities.
Understanding what your lease really says
Leases often contain complex language and legal jargon, making it difficult to assess what you’re actually agreeing to. In some cases, the real meaning of a lease clause isn’t even apparent.
We cover this issue in detail here:
🔗 Deed of Variation of a Lease: A Trap for Tenants
🔗 Traps for Tenants: Signing and Dating Commercial Property Leases – and Making Sure They Are Legal!
Learn from past mistakes: a cautionary tale
Even large businesses have been caught off guard by poorly structured leases. One of the most infamous examples is Halliwells, a major UK law firm that collapsed in 2012.
The firm’s lease liabilities played a crucial role in its downfall. After going into liquidation, Halliwells discovered it owed:
❌ £17.7M to its bank
❌ £14.5M to unsecured creditors
❌ £176.5M to the landlord!
This staggering lease obligation far exceeded their other debts, proving how a poorly managed lease can cripple even the biggest firms.
Read more here: Halliwells Moves Into Liquidation.
Why choose EM Law?
At EM Law, we are recommended by Legal 500 and Chambers & Partners for our expertise in commercial property law. We specialise in helping small and medium-sized businesses nationwide, ensuring our clients stay in control of their lease agreements.
What sets us apart?
✔ In-depth analysis: We don’t just summarise lease terms—we provide actionable advice to protect your business.
✔ Fixed-price service: £1,000 + VAT for a comprehensive lease review. No hidden fees.
✔ Tailored guidance: We assess how your lease terms impact your specific business needs.
Secure Your Business Future – Book a Lease Review Today
Don’t leave your business exposed to hidden lease risks and unexpected liabilities. Whether you’re taking on a new lease, renegotiating an existing one, or planning for the future, a professional lease review can save you thousands in unforeseen costs.
Contact EM Law today to safeguard your business.
Final word
A commercial lease is more than just a rental agreement—it’s a complex legal contract that can make or break your business. Taking the time to review and understand your lease before signing can prevent costly mistakes and provide you with greater control over your financial future.
🔗 Read more insights on commercial property leases
