Attn people who rent premises - whats your ideal contract/lease?

[perfectbeauty]

Hi all

I have just looked at some premises today and basically I can choose what contract/lease terms I would like

so question is to all those who rent /have a contract/lease from a landlord if you could write out a lease/contract in your favour what would be your ideal and what terms would you like

looking for things like:

how long lease would you like
get out clause
notice period
rent free period

and anything else you can think of

EDIT - premises need some refurbishment - walls painting and flooring etc which I will be doing

thanks in advance

x

 

[jes]

IMHO a lease is far too important and complicated to be done without a solicitor. Get the landlord to send his lease proposal to your solicitor and then you can start adding your terms and making amendments etc. It took three drafts, 6 months and lots of money before I got my lease sorted out

 

[perfectbeauty]

sorry I should have added - the landlord is a solicitor for a very large reputable firm of solicitors

the property is being let through a commercial property company but the landlord has said he is very flexible on lease terms and I can have short term long term, get out clause what ever I want (obv within reason) and this is why I would like ideas on what would be beneficial to me without him losing out as well

I have not had a contract lease before so just wanted some suggestions as I have to submit a proposal for him to review and then he will draw it up as that his normal business and I can then either go with it am happy or I can get a solicitor if my own to check it

he just wants somebody in the place as its been empty for 2 years

hope that all makes sense lol

thanks for your advice though

 

[Kim Lawless]

Keep it simple.

You do the interior decorating and improvements but he is responsible for all repairs inside and outside the property. My friend was hit with a £7,000 bill because the landlord decided that he wanted to replace the fire escape stairs to the block of flats above her shop. She refused and now six years later, having forked out £8,000 in solicitors fees, it looks likely that when it goes to court, she will lose and be liable for treble the original £7,0000 plus more legal fees.

You give each other 6mths notice.

Rent reviewed every 4 years.

Make it clear who pays the rates and bills.

The lease is between you two but remember that if you fold the business, then you are responsible for the rent etc until you find a buyer.

It sounds to me as though you really just want to rent and not become a leaseholder. I'd prefer that if it were me.

Remember that he is a solicitor and a landlord, so although he may say that he just wants to get shot of it, be cautious. Not meaning to put a downer on it. xx

 

[jes]

sorry I should have added - the landlord is a solicitor for a very large reputable firm of solicitors

...All the more reason for getting a solicitor then.

There's so much you need to be careful about.

You could get a ten year lease, but the landlord writes in a 3 month break clause!

You could be responsible for the bricks and mortar on a subsiding building, with a collapsing roof

Are the drains and plumbing in good order? Again, you could be responsible for that!

The property could be on contaminated land and you'd be responsible for the cleanup etc etc.

HTH

 

[perfectbeauty]

Keep it simple.

You do the interior decorating and improvements but he is responsible for all repairs inside and outside the property. My friend was hit with a £7,000 bill because the landlord decided that he wanted to replace the fire escape stairs to the block of flats above her shop. She refused and now six years later, having forked out £8,000 in solicitors fees, it looks likely that when it goes to court, she will lose and be liable for treble the original £7,0000 plus more legal fees.

You give each other 6mths notice.

Rent reviewed every 4 years.

Make it clear who pays the rates and bills.

The lease is between you two but remember that if you fold the business, then you are responsible for the rent etc until you find a buyer.

It sounds to me as though you really just want to rent and not become a leaseholder. I'd prefer that if it were me.

Remember that he is a solicitor and a landlord, so although he may say that he just wants to get shot of it, be cautious. Not meaning to put a downer on it. xx

thanks both for your replies

Kim you havent put a downer on anything this is exactly what I was looking for

the premises were last used as a doctors surgery and i'm looking to move from present location which I use as a salon and also training academy plus beauty/nails supplies
the premises I have now are large but these new prermises have so much more to offer

- car parking facilities
- detached premises
- no competition within a 2 mile radius
- really nice residential area
- huge premises (and i mean huge) over 2 floors so can easily expand the business once more established
- rent is same as what am paying at the moment
- will be able have separate spray tan room rather than on salon treatment room
- could have separate training rooms - 1 for beauty and 1 for nails rather than 1 large room
- have room for breakout for learners
- better kitchen facilities etc
and so on

I understand what you both are saying and thats why wanted suggestions so can do this with my eyes wide open so am grateful for any advice

At the moment I have been advised that he will have building insurance which I re-imburse him for so that any probs/repairs on building will be covered by that - am waiting on a price for this at moment

i dont mind whether I rent or have a lease as I plan on this for long term

this is what i was thinking of suggesting if its any help but wasnt sure am being too cheeky lol

4 months rent free which should cover cost of refurbishment - he has already said he will clear out everything that has been ripped up from last use (or 5 months rent free and we will clear it all out)

10 year lease with 2 year get out clause with 3 months notice
(notice period already agreed at 3 months)

rent review every 3 years

I'm responsible for all bills and rates (which is what I already do at current premises)

think he just wants an income rather than empty property sat there - but this is why i posted incase am missing something obvious and had rose tinted glasses on lol cos loved it minute i went in

but as a basic start - do you think what i have so far is reasonable (he is agreeable to a rent free period)

thanks again
x

 

[perfectbeauty]

...All the more reason for getting a solicitor then. LOL

There's so much you need to be careful about.

You could get a ten year lease, but the landlord writes in a 3 month break clause!

You could be responsible for the bricks and mortar on a subsiding building, with a collapsing roof it will be surveyed before I agree or sign my life away lol - would hope that these things would be picked up on a survey ??

Are the drains and plumbing in good order? Again, you could be responsible for that!

The property could be on contaminated land and you'd be responsible for the cleanup etc etc.

possibly i could put in then i am not responsible for any major brickwork repairs etc - what do you think

HTH

I am about to email property company my proposal for lease and so not committed myself just yet

thank you for some things to think about x

 

[jes]

the premises were last used as a doctors surgery

When you email them, ask if the property has planning permission for salon use.

HTH

 

[perfectbeauty]

When you email them, ask if the property has planning permission for salon use.

HTH

yep thats on my list lol

the property company dont think it will be a problem - but i'm not sure who would get change of use landlord or me - am about to google it now and see what i can come up with

so far on my list of things i need answers on are
- A1 use
- the lease proposal i detailed in prev post
- rateable value of premises - specifically am looking for under £6000 so that i can qualify for rebate under small business deal at moment
- price on building insurance policy that i have to reimburse and also what it covers
- whether the central heating is fully working - (as i dont want to buy new heating)
- whether alarm works

thanks for your time and help

kind regards
nicola
x

 

[Curly Bamboo]

Rent review - when and how it will be calculated - what formula is used?

Although you are in it for the long haul, should your situation change and you want to break the lease to sell the business, make sure this option is addressed in the lease. Some leases make it tricky for the owner to sell the business on.

I would not recommend signing a legal document without getting a solicitor to review it on your behalf.

 

[trozzina]

Yes, defnitely get your own solicitor to have a look at any lease. It sounds like your landlord is a reasonable chap so just tell him you'll take the lease as a first draft and tweak it once you've had some independent professional feedback. The commercial agents should also be able to tell you exactly what the implications of each clause are, but they wouldn't be likely to suggest amendments.

And yes, set in stone just how much your rent can increase by when it's reviewed - you don't want it to suddenly double!

WRT insurance, it might be worth you taking this on yourself as it will give you much more control. I buy the insurance for the flat upstairs and they have to reimburse me in much the same as it sounds like your situation will be. Now I like a bargain so I've got it for just over £100 for him, but I've had quotes for nearly £700. If I wanted to go with the most expensive I can find, I can and he's got to pay it, can't do a thing about it. I'd suggest you don't want to find yourself in that situation. At the very least agree that you are able to get quotes if you feel his policy is over-priced and that if you can find the same for less then you go with that. Otherwise be cheeky and suggest that maybe he could just include it in the rent, in the same way as residential lettings?

Sounds like a fantastic opportunity - good luck!