New Lease – Advised a Midlands-based manufacturing company with lease as part of its business expansion

Blake Turner LLP recently advised a [West] Midlands based manufacturing company on a strategic property transaction to support its continued growth. The client required additional operational space, including warehouse and office areas, to expand production capacity.

The client had been occupying part of a building under a licence granted by the administrator of the previous tenant, which had entered administration. They were also using part of the site that was unregulated. Although the client initially intended to give up this unregulated space, we entered into a temporary arrangement by way of a tenancy at will to allow for formal regulation during the transition.

Our client ultimately took a direct long-term lease with the landlord, covering both the previously licensed space and additional areas required for growth. A key part of the transaction involved careful communication with the administrators’ lawyers to ensure that all leases over the site previously occupied by the client were simultaneously surrendered or adjusted, including any potential dilapidations under the previous tenant’s lease. This co-ordination was essential to ensure that no historic liabilities, including repair or reinstatement obligations, could pass to our client.

A bespoke asbestos clause was also included, placing responsibility for all existing asbestos containing materials firmly on the landlord. This was vital because no asbestos survey or report was in place at the time, ensuring the client could operate safely without inheriting historic liabilities.

The transaction involved cross-departmental work within Blake Turner LLP, including property, corporate, and insolvency teams. Temporary licences, tenancy at will arrangements, SDLT, Land Registry matters, and multiple titles were all carefully managed. Lease terms were negotiated to include rent, rent-free periods, lease term, break clauses and conditions for tenant break, repairing obligations, and permitted use, aligned with the client’s long-term operational and commercial objectives.

The outcome was a secure, fit-for-purpose, long-term facility that incorporated previously unregulated space under a temporary tenancy at will, supporting operational growth and flexibility. Blake Turner LLP’s pragmatic, commercially focused advice ensured a smooth transition while safeguarding the client’s interests and ensuring full regulatory compliance.

Key considerations for tenants in complex property transactions such as this one:

• Check with administrators’ lawyers: Ensure any previous leases have been properly ended or varied so the tenant does not inherit historic obligations, such as repair or reinstatement liabilities.
• Document temporary arrangements: Clearly record any short-term licences or tenancy agreements to avoid disputes while progressing towards a permanent lease.
• Manage risk carefully: Ensure responsibilities for matters such as environmental or safety compliance are clearly allocated to the appropriate party.
• Make the lease work for your business: Ensure rent, break options, lease length, and permitted use align with your long-term objectives.
• Coordinate with all parties involved: Work closely with relevant stakeholders, including internal teams and external solicitors representing other parties, to ensure a smooth transition and completion of the lease arrangements.

If you would like to discuss how Blake-Turner LLP might be able to assist you please contact Paul Cooper or Hannah Starling.