By Alwyn Thomas, commercial property specialist at award winning Harding Evans Solicitors.

If you are considering taking a lease of a shop, restaurant or other commercial premises you are probably familiar with the price you will have to pay i.e. the rent and/or premium. However, the landlord and tenant relationship is complex and below are some of the additional factors which should be taken into account.

1. How important is planning permission?

Planning permission is required from the local planning authority for any operational development or material change of use of land. It is vital to check that your intended use of the property is acceptable to the local planners. Enquiries may be made of the local authority and of your landlord to ascertain whether or not relevant permissions are in place or if your proposed use is lawful. The absence of planning consent may result in your business being closed down with you having a continuing obligation to pay rent to your landlord nonetheless.

2. Should I worry about contaminated land?

The presence of pollution in land can have very serious consequences. The land may be “blighted”, making it difficult to sell your lease in the future. It may be impossible to use the land as you intended due to contaminants without incurring expensive clean up costs. It is essential that appropriate environmental enquiries are made before taking your lease.

3. How much VAT do I have to pay?

Having agreed to the level of rent to be paid to your landlord under the lease you should make enquiries as to whether VAT is payable on the rent. Commercial property owners may “opt to tax” what would otherwise be exempt supplies of a particular property into supplies chargeable to VAT at the standard rate. This allows a developer to recover the input tax incurred when acquiring or developing the property.

4. Can the landlord make changes to the rent?

Most leases (except for very short ones) will provide for your rent to increase to a market rent at specified intervals - commonly 3 or 5 years. These rent review provisions require careful examination as they will govern your future rental obligations.

5. Who is responsible for repairs?

Responsibility for repairs is one of the most common sources of dispute between landlord and tenant. It is wise to deal expressly with this matter in the lease. Usually a tenant must give the property back to the landlord at the end of the lease in good repair. It is therefore advisable for a surveyor to advise as to the likely repairs needed before you take the lease.

6. Am I able to sell my lease?

You may wish to sell your business in the future (and, hopefully, make a profit!). Your ability to do so will be governed by the terms of the lease and landlord and tenant legislation.