Are you considering commercial subleasing? Contact our commercial property solicitors in London for legal advice and help with a commercial sublease agreement.

We are familiar with the applicable laws & regulations to ensure compliance and safeguard your rights throughout the subleasing process.

Call our fixed-fee commercial property solicitors on 020 3417 3700 or fill in the enquiry form for legal assistance with your commercial sublease agreement.

No matter where your commercial property is, our solicitors provide commercial subleasing services throughout England and Wales.

Table of Contents

  1. What is a commercial sublease agreement?
  2. What is commercial subleasing?
  3. What are the advantages of commercial subleasing?
  4. How to make subletting legal?
  5. Why choose Wembley Solicitors?
  6. Frequently Asked Questions
  7. Need Legal Advice & Assistance?

What is a commercial sublease agreement?

A commercial sublease agreement is a legal contract between a tenant (sublessor) who currently holds a lease for a commercial property and another party (sublessee) who wishes to rent a portion or the entire space from the tenant. This agreement outlines the terms and conditions of the sublease arrangement and serves as a binding contract between the sublessor and sublessee.

What is commercial subleasing?

Commercial subleasing refers to the process of leasing or renting out a commercial property by an existing tenant to another party, known as the sublessee or subtenant. In this arrangement, the original tenant, referred to as the sublessor, becomes a landlord to the sublessee while still being a tenant themselves.

The sublessor, who holds the primary lease with the property owner or landlord, decides to sublease a portion, or the entire commercial space to a third party. The sublessee then occupies the space and pays rent directly to the sublessor, who, in turn, continues to fulfil their obligations under the original lease by paying rent to the property owner.

The terms and conditions of a commercial sublease are typically outlined in a sublease agreement, which is a legal contract between the sublessor and the sublessee. This agreement defines the specific terms of the sublease, including the duration, rent amount, permitted use of the space, maintenance responsibilities, and any other relevant provisions.

What are the advantages of commercial subleasing?

Commercial subleases can provide benefits to both the sublessor and the sublessee.

For the sublessor, it allows them to generate income from underutilised or excess space, offsetting some or all of their rent obligations. It also provides flexibility, as the sublessor may have the option to regain the space if needed before the expiration of the primary lease.

The sublessee, on the other hand, can benefit from subleasing by gaining access to a desirable location or premises without committing to a long-term lease directly with the property owner. It provides a more flexible and potentially cost-effective solution, particularly for businesses seeking shorter lease terms or testing new markets.

How to make subletting legal?

To make subletting a commercial property legal, it is important to follow these steps:

  1. Review your lease agreement
  2. Seek permission from the landlord
  3. Negotiate the terms
  4. Create a sublease agreement
  5. Obtain legal advice
  6. Notify the landlord and obtain consent

1. Review your lease agreement

Carefully review your original lease agreement with the landlord to understand if subletting is allowed and if there are any specific conditions or requirements. Some lease agreements may explicitly prohibit subleasing, while others may allow it with certain conditions or with the landlord's consent.

2. Seek permission from the landlord

If subletting is permitted or if you want to explore subleasing even if it is not explicitly allowed, you must obtain permission from the landlord. Contact the landlord or property owner to discuss your intention to sublet and provide details about the proposed sublessee and the terms of the sublease. The landlord may have their own requirements and approval process.

3. Negotiate the terms

Once the landlord grants permission, you will need to negotiate the terms of the sublease with the sublessee. This includes determining the duration of the sublease, rent amount, maintenance responsibilities, and any other relevant provisions. Ensure all agreed-upon terms are documented in a written sublease agreement.

4. Create a sublease agreement

Prepare a legally binding sublease agreement that clearly outlines the terms and conditions of the sublease. The agreement should include details about the parties involved, property description, sublease term, rent amount, permitted use, maintenance responsibilities, and any other agreed-upon provisions.

Consulting with a legal professional is highly recommended to ensure compliance with local laws, regulations, and the terms of your original lease agreement. They can provide guidance on the legal implications of subleasing and help you navigate any potential risks or issues that may arise.

Whether you want to draft or review the sublease agreement, our commercial property solicitors in London can provide the help you need.

Once the sublease agreement is in place, it is important to formally notify the landlord of the subletting arrangement and provide a copy of the sublease agreement for their records. Ensure you have obtained the landlord's explicit consent in writing to avoid any future disputes or complications.

By following these steps and ensuring you have proper legal documentation and consent, you can make subletting a commercial property a legal and transparent process that protects the rights and interests of all parties involved.

Why choose Wembley Solicitors?

  • We have extensive knowledge and experience in drafting and reviewing commercial sublease agreements.
  • Our commercial lease solicitors provide legal services on a fixed fee basis without blowing your budget and with no hidden costs.
  • We provide professional legal advice and assistance at every step and keep you updated as your matter progresses.
  • We provide legal services remotely throughout England and Wales. You do not need to physically attend our office.
  • We have a team of qualified and accredited solicitors.
  • We are authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you are in safe hands.

We provide legal advice and services to both landlords and tenants. Call our property solicitor today at 020 3417 3700 for more information about the services.

Frequently Asked Questions

Whether or not you can sublet a commercial property depends on the terms of your lease agreement with the property owner or landlord. In general, subletting a commercial property is possible, but it may require obtaining permission from the landlord and complying with specific conditions.

Subletting a commercial property in the UK can have implications for business rates, but the specific impact depends on various factors. Business rates are a form of property tax that businesses in the UK are required to pay based on the rateable value of the property they occupy.

Do you need legal advice or assistance with a commercial property lease? Our expert property solicitors are ready to help you. We're authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you're in safe hands.

Contact our solicitor today to get legal advice and assistance with your legal matters.

You can call us on 02034173700 or leave your details here for a callback request regarding your legal matter.

CALL