• Home
• Services
• News
• Meet the Team
• Law Library
• Contact Us

Commercial Property - Frequently asked questions

• How do I go about getting planning permission to put another building on my property?
• What happens when a lease of business premises comes to an end?
• What is meant by the expression "Sale and Leaseback"?

How do I go about getting planning permission to put another building on my property?

"Planning Permission" are two words that can strike fear into any anti-beaurocrat, but, if you are able to look fear in the face then great benefits may be had in making such efforts to obtain planning for additional property i.e. extra living space while increasing the value of the land.

Your local planning authority will consider a number of factors in deciding whether to grant permission, taking into account the Council's Local Plan for urban development and environmental conservation. The Planning authority will also equate such issues in conjunction with any loss of privacy that might occur, the effect on the local infrastructure, conservation of historical properties and the overall impact on the surroundings. Additional information will be required if seeking to develop commercial properties; such as the floor areas involved, the number of employees, and the arrangements for car parking and impact on local traffic.

One of the special problems which arises is the City of Bath in its World Heritage status and the fact that it is surrounded by Green Belt, where wholesale development is not permitted. However, with the right approach and of course, professional guidance you may yet have the last laugh.

What happens when a lease of business premises comes to an end?

Business is booming and you realise that your lease is soon to come to an end. This could be disastrous. However, in the immortal words of Douglas Adams......."Don't Panic".

It is unlikely that your Landlord will want to block your entitlement to a new lease. Indeed, he can only do so in very limited circumstances, for example, if he needs to redevelop the premises and could only do so with you out of the way. The Landlord's main concern is likely to be getting a new rent agreed. He may start the ball rolling by serving a notice on the Tenant indicating his intentions. If not, the Tenant can initiate discussions. Until fresh terms are agreed the Tenant is able to "hold over". The main disadvantage of holding over is that the Tenant has no lease to assign if future plans include a sale of the business as a going concern. If the Landlord is difficult the Tenant can go to Court for the terms of a new lease to be settled. Fortunately, this is pretty rare and common sense usually prevails.

One point to beware of is that if the Tenant gave up his rights to claim a new lease at the outset, then there is no right to remain in the premises or to claim a new lease.  When taking a new lease of premises always plan ahead and be sure you appreciate the implications of what you are asked to sign.

What is meant by the expression "Sale and Leaseback"?

You may have heard the expression Sale and Leaseback in the context of large corporate transactions. Whatever the size of your business, if you own the freehold or long leasehold of your premises, this may be a feasible option for releasing capital. Where a business is for sale, the Buyer may be more interested in the core business than in owning freehold premises. Therefore, a deal can be structured to grant the Buyer a Lease at a market rent for a period of years allowing the Seller to retain an income producing asset.

Even if your business is not for sale you might consider retaining the freehold and granting a lease to your trading company. The freehold could then be sold to a third party. Your business would continue in the premises but with the added advantage of a capital sum which might be used to invest in that long-awaited expansion.