Leasing Property In Ireland

Clearly, buying, selling or leasing commercial, retail and industrial property can be an intricate process. There are two types of properties in Ireland:

Freehold and Leasehold:

A freehold property is one where there is in effect, absolute ownership. Leasehold property is where an occupier (or lessee) has an interest in the property for a precise number of years.

Leases in Ireland in parts such as Sligo, Cork, and Limerick etc are common for commercial, retail and industrial properties. Basically, these agreements can permit you an expansion of your leasehold interest further than the agreed period or the alternative to purchase the freehold interest. Leases can also be bought and sold though usually there are controls set by the freehold owners (or landlords) as to what purpose the property can be used for. Most commercial leases in Ireland last up to 20 or 25 years with upward rent reviews generally every five years.

Full lease:

Commercial property can either be leased in its whole or sublet in smaller units. If a complete building is being rented, it is typically done under a full repairing and insuring lease (FRI). Tenants may be obliged to pay insurance, rates, stamp duty etc and must also keep the building in good physical order. A structural investigation should be carried out by the potential tenant to verify the state of the property prior to signing contracts/lease.

Dividing a property:

If there are several tenants over a single property, they will regularly pay to the Landlord a service charge for the management, maintenance, repairs and other relevant servicing of the property.

Registered and Unregistered Land:

All property (freehold and leasehold) is either registered land or unregistered land. This is to say that the land has been registered in the land Registry or not and has been given its own folio number. Title documents are used to show the owners as well as any other properties that have any interest in the property.

One can also pass on or sell their lease (known as an Assignment) to another person, with the landlord's consent, for the remaining years of the Term of the Lease.