Leasehold offices are held by a business by virtue of a lease agreement between them and the landlord. It therefore permits the company to hold the property for a period of time that is determined by the lease agreement.
Leaseholds differ from freeholds namely due to their length. Under a lease businesses are constrained and have to report to the landlord if they wish to extend the lease or make changes to their offices. In order to liaise over the commercial terms in the lease it is always advisable you use an agent to ensure you are well represented in negotiations. Typically in the current market leases are predominately either five years with a tenant's option to determine at the third anniversary or usually ten years with a tenants break at the fifth year of the term.
There are other forms of leases known as alienation rights because they allow businesses different ways to offload their lease commitments to new tenants. It is advisable you consult with an agent to ensure you fully understand alienation rights and all other commercial terms relating to offices.
Unlike serviced offices leases therefore are for a longer commitment however over the negotiations you will see this makes it more affordable in comparison. This is because with serviced offices you are paying a premium for the benefit of the flexible arrangement.
In order to agree the wording of a lease we advise not only do you need an agent to represent you in negotiating the commercial terms but also a solicitor who will focus their attention on the wording of the lease. This is to ensure it is not too onerous in favour of the landlord or tenant.
For more information on this or any other property related matters please feel free to contact us on +44 207 692 0885.