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Thomas
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 6261
Experience:  BA (Hons), PgDip, Practising Solicitor
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please can someone answer if an individual renting a small

Resolved Question:

please can someone answer if an individual renting a small business space can be asked to pay £1500 fora legal contract to be drawn up in advance of a 5 year rental? What conditions can i stipulate or look out for? Such has what type of get out clause if I need to leave is standard? Thank you,
S
Submitted: 2 years ago.
Category: UK Property Law
Expert:  Thomas replied 2 years ago.
Hi
Thanks for your question.
To enable me to answer your question could you please respond to the following using the same numbering:-
1. What are the terms of your present occupation?
2. Do you have a written document stating such terms or is it simply an oral agreement
3. What rights does the landlord have to terminate your present agreement
Kind regards.
Tom
Customer: replied 2 years ago.
1.. I am simply renting an office for whatever purposes I need.
2. I have a current contract for a 6 month short tenenancy - I have now been asked to move to a 5 YEAR contract. However this was asked yesterday and with little warning. What concerns me here is the sudden stipulation of a £1500 fee to write this new contract. This was never considered when i sgined the 6 month contract which could have been 3 years as this was mentioned by the agent. What was also unusal was this is a basement space and I got it cheap as it has no wondows or toilet. However he charged me £1300 building insurance 3 months after moving in?
3.He has the right to make a change as i have agreed to this in the short term con
tract etc...
thanks,
Strephen
Customer: replied 2 years ago.
1. I am simply renting an office for whatever purposes I need.
2. I have a current contract for a 6 month short tenenancy. I have now been asked to move to a 5 YEAR contract. However this was asked yesterday and with little warning. What concerns me here is the sudden stipulation of a £1500 fee to write this new contract. This was never considered when i sgined the 6 month contract which could have been 3 years as this was mentioned by the agent at the time of signing. What was also unusual given that this is a basement space and I got it cheap because it is in poor repair... it has no wondows or toilet - he charged me £1300 building insurance 3 months after moving in? I paid for this as I was not in a postion to move on etc...
3.He has the right to make a change as i have agreed to this in the short term con
tract which has no expired etc...
thanks,
Strephen
Expert:  Thomas replied 2 years ago.
Hi Stephen,

Thanks for your reply.

If you are commercial tenant with a business tenancy with no break clause entitling the landlord to early termination and you have not beached any terms of the tenancy then the landlord cannot evict you any earlier than the fixed term.

Once the fixed term has expired the landlord can evict you. He does not need to go to court for an order for possession (although he is at liberty to do so if he wishes) because this is a commercial matter. If the tenancy was only for 6 months then you would not have a statutory right of renewal.

This means that if you cannot agree to the landlord’s terms for the new lease (including their fees) then he will simply evict you or negotiate I’m regret to say. There is not statute or law which says that you must pay his fees, it really is simply for negotiation but where the tenant is very keen to have the property payment of the landlord’s fees if pretty common and the amount charged (1.5k) is about right.

Unless the property is very, very large or unusually expensive to insure that insurance contribution seems high. You need to check the tenancy to ensure that you are obligated to pay the buildings insurance (or a proportion part) then ask the landlord to show you a receipt for the premium that you have apparantely paid.

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Kind regards,


Tom
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 6261
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and other UK Property Law Specialists are ready to help you
Customer: replied 2 years ago.
Hi
Thanks Thomas, this is helpful
However I have one last concern...
Is it stadard to pay bulding insurance every year for the duration of a 5 year contract?
Many thanks,

Stephen
Customer: replied 2 years ago.
Hi
Thanks Thomas, this is very helpful.
However I have one last concern...
Is it stadard to pay bulding insurance every year for the duration of a 5 year contract?
Many thanks,

Stephen
Expert:  Thomas replied 2 years ago.
Hi,

Yes, you would have to pay the part of the premiums for the whole building that relate the property over which you have a lease.

Tom
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 6261
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and other UK Property Law Specialists are ready to help you

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