By Laurence Lucas, commercial property partner at Tayntons Solicitors 

Most modern commercial property leases are based on a relatively small number of lease formats.

 This can easily deceive some people into thinking that leases are inherently simple. Any experienced commercial property lawyer would advise that this is far from the case but then, they would wouldn't they?

A lease is a special form of contract which creates a legal estate in land but, apart from that, it contains rights and obligations much like any other commercial contract. We all enter into contracts in various forms in our everyday lives, but most of the time we hardly give this a second thought until something goes wrong.

The main problem with a lease is that if something goes wrong it can do so spectacularly. As a matter of course it is usually a tenant who has most to lose but landlords can also suffer financially if sufficient care is not given to the drafting of a lease.

What can go wrong?

• Just because a lease is in a standard form does not mean that the obligations contained in it can always be accepted without question. A tenant might be prepared to accept the "dodgy roof" on the basis that he can patch it up from time to time, but what if the landlord says that the roof is beyond repair and needs to be replaced? It will not necessarily be clear on the face of the lease that an obligation to repair can amount to an obligation to renew.

• All properties are different and the terms of the lease should be checked to make sure that the provisions it contains are appropriate for the particular property concerned. The tenant might assume he has rights over the landlord's adjoining property to provide rear access, but these would not be included automatically.

• All tenants have their own particular requirements. Outside storage might be crucial for the operation of a tenant's business, but does the lease allow this?

• Drafting errors. A simple word such as "not" might be left out and this could have a drastic effect upon an obligation entered into by the landlord or the tenant.

• The grant of a lease will be subject to any matters which affect the landlord's interest in the property. Even though these could place significant financial burdens on the tenant or restrict the way in which the premises can be used they will almost certainly not be referred to specifically in the lease.

At the end of the day, it is up to each individual tenant to decide upon their own appetite for commercial risk but no-one should ever be lulled into thinking that leases are simple and without dangers.

Still in need of assistance or have unanswered questions? For more help contact Laurence Lucas and the team at Tayntons: Telephone 01452 222430 , email laurence.lucas@tayntons.co.uk or visit www.tayntons.co.uk.

Business expert: Don't let the Xmas hangover affect your business

23rd November 2018

By Alex Lyttle, Associate Partner at Tayntons 

We are now at the time of year where Christmas tunes are being played in shopping centres and supermarkets, children are preparing their lists and the all important turkey is being ordered.

Christmas parties are being planned and in the legal world conveyancers are tearing their hair out answering the question "can we complete before Christmas?" But what effect does the Christmas period have on business and the people trying to run them?

It is a matter of fact that businesses spend more over Christmas than at other months in the year. Bonuses are expected by staff, parties are required, not to mention that the kids want the latest gadget being advertised at a cost that seems far from logical.

When we over indulge we enjoy ourselves at the time but have a hangover in the morning. Businesses are no different. The spending in December can create a real problem in January.

The money spent in December has to come from somewhere and quite often businesses find there is no money in the pot in January. The solution to this problem is to not pay their bills in January thinking that their suppliers will not mind waiting for an extra month to be paid.

This in turn creates two problems. If a poor January is followed by a slow February then then businesses can find they are in real trouble. Their creditors while happy to wait a month for payment are not happy with a two or three month wait and suddenly the businesses are not being supplied with what they need to continue.

In turn, the suppliers owed the money struggle to pay their overheads and if a rent quarter is due they can be looking at no option other than some form of insolvency process.

So what can be done to prevent this? We should all enjoy Christmas but expenditure needs to be looked at carefully, can you afford what you are spending? What is the pipeline looking like for January? Can you afford the big payment you are expecting not to be made?

When you realise a customer is unlikely to pay it is important to take action as early as possible. The legal process is notoriously slow, so it is important to send the letter before claim as soon as you are able. It might be that court proceedings are required or some other enforcement action needs to be taken but time is of the essence.

It is important you do not put your head in the sand but deal with the situation you are in. Normally the quicker the problem is dealt with the easier it is to overcome.

For more help contact Alex Lyttle and the team at Tayntons. Telephone 01452 522047 , email info@tayntons.co.uk  or visit www.tayntons.co.uk.