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Hello, I am just about to sign a new lease for a commercial property. I run my business for nearly a year now and I just have manage to find a new place. So far I agreed with the landlord and the agency the following points: 1. Rental: £17,500 per annum (plus VAT if applicable) Payable monthly in advance. 2. Rent Free: 2 months 3. Lease Duration: 10 years 4. Break option: Option to break after 3 months if planning permission / license is not granted. A further option to break at the 1st and 2nd anniversary of the date of entry, on giving no less than 3 months notice. 5. Rent Reviews: May 2018 – upwards only (if break option not exercised) 6. Date of Entry: May 2013 (exact date of entry to be confirmed) 7. Use Clause: Proposed use – car sales/workshop etc. Note - tenant to satisfy themselves that all necessary planning and license consents exist for their proposed use. 8. Repairs / Insurance: Tenants liable 9. tenant can sub let the property 10. Legal Costs: Each party responsible for their own costs relative to the transaction. 11. Conditions: Satisfactory references/covenant information ********************** I would like to change points: 4, 5 and 8 my suggestions: 4 can break any time giving a 12 months notice 5 rent reviews after 10 years 8 landlord is responsible for repairs, tenant for the insurance Should I add/remove anything else which is important, what about deeds ? anything else ???? THANK YOU for your help. Michael
I would like to change points: 4, 5 and 8 my suggestions:
4. can break any time giving a 12 months notice
5. rent reviews after 10 years
8. landlord is responsible for repairs, tenant for the insurance
This is a lease of entire site. It is a yard with no buildings at all. We will build them later but the lease is yard only.
It's about 100 meters long and 50 wide with secure fence around it,
Just to clarify few things:
Are the rest of the points ok ? should I add or remove anything ?
I understand that I must ask for a right to purchase ?
I am going to invest about 10.000 pounds during the first year of the lease, only to be able to sublet the remaining ground. I only need 1/5 of this yard for my business, but prices for a smaller places suitable for car sales and repairs in Tollcross area are bigger then the whole of this yard ( and its just 300 meters away form other dealers )
If I find tenants myself ( already have one paying 1200 a month ) then I don't pay a penny for my garage... in fact can earn a bit every month.
Should I in fact go for 6 year lease instead ?
Can you please comment all of what I just said ?
promise not to make to many follow up questions, I understand its only a brief advice for 22 pounds.
The break clause is already there: after first 3 months, after 12 months and after 24 months, then is 2 years in advance.
We already have the car selling business next door so we will just move to the new place with existing business, also we will be able to have a proper mechanical garage to boost the income.
DO I REALLY NEED a solicitor to execute the right to purchase after 10years ? or it is just a matter of having that mentioned in the lease agreement ???
This is the last question after this answer I am going to give you a feedback as you have been really helpfull so far.
Thanks for your offer :)
Just one question:
How common or how difficult it is to get the landlord to agree with this purchase option written in the lease ?
can I ''demand'' that I should be paying whatever the current value is ? before I build all the workshops etc ?
Sometimes I am just a bit afraid of making something silly here, its a big deal for me this lease but I think I really have planned this quite well.
I just did, so should be ok, currently waiting for his response
thanks a lot for your help, if I have any more questions in the future I hope I can get back to you ( not going to abuse the system here ;) ) just a random question maybe but for now big thanks :)