(Note that it doesn`t matter if the owner is a limited company. The only important question is whether it is the tenant who is a limited company). Sometimes south of the Thames are found in some of the new river developments for business rentals. Home Counties homes are also popular, close to reliable commuter lines. Traditionally, business leases have been primarily active in the financial sector, but are now increasingly found in the information technology and telecommunications sectors. Unless the property is located in a fairly specific part of the UK, it can be difficult for an owner to rent to a business. Popular places in London are Notting Hill Gate, Holland Park, Chelsea, Knightsbridge, Kensington, parts of the West End, the City, Wapping and Docklands. This means that “corporate rents” (as they are called) are subject to the underlying “common law” and the legal provisions that govern tenancy contracts prior to the Rent and Housing Act, in order to amend them. As a result, a number of clauses in this agreement are not appropriate if your lease is with individuals. It is not an easy process.
The law considers a person and a limited company incorporated by that person to be separate legal entities. This means that the transfer of a property from the individual property to the business can have a significant impact. When a company rents housing for its own employees or directors, it is called “renting a business.” Note, however, that if the property is leased to clients for sublease purposes, it will be a commercial lease and not a dwelling. But the company is responsible for the rent, if the subtenant/occupier pays it. Your business lease covers all important issues, including: A lease rental company should be used if the tenant is a business and the occupant of the property is an employee or visitor to the business, along with his family. The transfer is actually a transaction: the individual sells the property to the company. If the property is leased at the time of sale, it is a transaction with an “in situ” tenant and the business becomes owner by purchase. The rental of the business is not regulated. Therefore, a company cannot challenge a rent – once it has entered into a tenancy agreement – and claim that it is too high (as is sometimes possible under the law). Many companies have their own leases, which they insist on using. However, the lessor generally reserves the right to verify and propose changes to the contract.