Urgent advice for problems opening up a shop

[Liane]

I am on the verge of signing for a shop and I have two queries I would like some advice on before I speak to the landlord tomorrow. He wants me to pay £400 for insurance as his mother lives above the shop, this covers fire, flood, damage to the windows and front of house but surely this will be covered in my own insurance? Also, his solicitor has asked that I pay the "Landlords costs of preparation of the Lease and Counterpart in the sum of £250 plus VAT and any Stamp Duty Land Tax is payable by the Tenant". This wasnt mentioned or agreed, surely this is payable by the Landlord as its his property? I will be paying to do the shop out, renew the entire flooring and paying 3 months rent up front. I can't help but feel this is a little unfair and while its a perfect shop, I really dont want to be ripped off. If there is anyone out there who has come across similar, please, please give me some advice before tomorrow :sad:

 

[thinkpink2008]

I really don't know about the legal side of things, however I'm quite sure you are only liable for contents insurance and public liability, any other insurance is classed as landlords insurance which he should pay. I know when we took on our Salina few years ago there where fees involved in the tenancy agreement but can't remember how much or what I'm afraid. Sorry I'm not much help but sure a knowledgable geek will be along soon to help more. Good luck xxx

 

[weezie]

Do you not have a solicitor? - I would really get a professional to look over the documentation. X

 

[Sass]

I am on the verge of signing for a shop and I have two queries I would like some advice on before I speak to the landlord tomorrow. He wants me to pay £400 for insurance as his mother lives above the shop, this covers fire, flood, damage to the windows and front of house but surely this will be covered in my own insurance? Also, his solicitor has asked that I pay the "Landlords costs of preparation of the Lease and Counterpart in the sum of £250 plus VAT and any Stamp Duty Land Tax is payable by the Tenant". This wasnt mentioned or agreed, surely this is payable by the Landlord as its his property? I will be paying to do the shop out, renew the entire flooring and paying 3 months rent up front. I can't help but feel this is a little unfair and while its a perfect shop, I really dont want to be ripped off. If there is anyone out there who has come across similar, please, please give me some advice before tomorrow :sad:

I would urge you to postpone your appointment tomorrow with this landlord and get yourself a Solicitor!! I have recently been in a similar situation with a very shady landlord and his 'supposed' solicitor. The rights of Tenants and commercial landlords differ greatly from country to country within the UK - and if you are naive in any way concerning your rights and obligations to a landlord you will regret it!! HTH.. :Love:

 

[Liane]

Thank you for the replies, I'm on a budget and hadnt factored in solicitors fees as there was no need for them, or so I thought I know its better to be safe than sorry but I really dont know if I can afford one x

 

[Sass]

Thank you for the replies, I'm on a budget and hadnt factored in solicitors fees as there was no need for them, or so I thought I know its better to be safe than sorry but I really dont know if I can afford one x

You can't afford NOT to!! Honestly if you enter into a tenant agreement without knowing your rights and obligations you may end up paying through the nose for things that are not your responsibility, which in turn takes money away from your business.

If you can't afford a solicitor - contact either CAB OR Business Gateway, both of whom with give you free impartial advice. :Love:

 

[mm29]

Contact your local uni and ask about the flac free legal advice centre
Normally held my year 4 students

 

[Liane]

Contact your local uni and ask about the flac free legal advice centre
Normally held my year 4 students

ooh, what is this??

 

[souz]

Yes you are responsible for solicitors fees Ingoing for landlord and yourself, this is standard practice for commercial lease and is usually around the £500 plus vat. Insurance is your responsibility too, as is from now on once you sign the lease and are paying rent anything to do with the shop so if heating breaks down, anything happens with electric , keeping the shop in reputable repair etc.

The building I am in I have upstairs and downstairs so I am responsible for the roof, outside of building as well as the car park that I have . Hope this helps. You do need to get a solicitor though or at least get someone to read your lease before you sign it

 

[nickysnails200]

You should not pay any money towards the cost of insurance as effectively you'd be paying for his mothers home insurance which isn't right. When you take out business insurance say for example a fire starts from your salon your insurance would cover that, frankly he is taking the piss and i would be very surprised if any money went towards what he claims anyway. Any lawyers fees such as writing up papers should be covered by the landlord not the tenant as they are the one drawing up the terms of the legal agreement. Unfortunately the land tax is indeed your responsibility, hmrc states it's the responsibility of the one buying/renting the property

 

[daydreams01]

Don't agree to any terms without a solicitor looking at the draft lease first. When I was looking at commercial properties, the landlords will obviously try and get the best deal for them incl. you laying for their legal costs but that's where you need to negotiate.

When I put my offer in on the shop I lease, I requested a drop in the initial starting rent plus a short rent free period to allow me to do the refurb plus each party to pay their own fees. You may also want to consider a break clause after 2 years so that you can get out of the lease if things are not working out.
He may not agree to all your requests but keep negotiating until you are happy with the terms. It is in his interest to consider your offer if you are in a good position because he won't want an empty shop not bringing him in any rent and especially if you are looking to improve the state of the property you are in a good position to negotiate. It's only if he has people queuing up to rent it he may not budge on his terms but in this climate I doubt it so you have nothing to lose. You really need a solicitor, it's too important not to.




Sent from my iPad using SalonGeek mobile app

 

[Cholo]

As Souz says, it's fairly common to have to cover landlords costs. You can refuse or try to argue the point but obviously you to need to weigh up the costs of delaying the process.

Definitely have a solicitor review the agreement. It will potentially save you money in the long run plus they may be able to negotiate better terms including break clauses etc.

If you're tight in budget & your local university doesn't offer anything, try the People Per Hour website. There are solicitors in there.

 

[joe90]

Yes you are responsible for solicitors fees Ingoing for landlord and yourself, this is standard practice for commercial lease and is usually around the £500 plus vat. Insurance is your responsibility too, as is from now on once you sign the lease and are paying rent anything to do with the shop so if heating breaks down, anything happens with electric , keeping the shop in reputable repair etc.

The building I am in I have upstairs and downstairs so I am responsible for the roof, outside of building as well as the car park that I have . Hope this helps. You do need to get a solicitor though or at least get someone to read your lease before you sign it

You have a full repairing lease and not all leases are the same, I do not have a full repairing lease and am only responsible for the inside of the building. However, you may be responsible for paying either in full or partially for the landlords building insurance.

As has already been said by many though, get a legal eagle to check the lease before you sign anything.

 

[persianista]

Souz is correct re- legal fees.
A commercial lease is often known as a 'Full repairing and insuring lease'
At the very least, you need a solicitor to check it over and explain it to you. Commercial property is NOT the same as residential, and you need to be fully aware of what you're signing up to.

 

[Liane]

Thanks sooo much for all the replies, I am having two weeks rent free to do the property up and I have a three month get out clause if things dont work out. I will try and get legal advice on this, I havent had the lease yet but I will try and negotiate the money side of things with the landlord tomorrow. As pointed out, there isnt a queue of potential tenants, the property has been empty for some time and he is quite happy with the idea of it being well presented and looked after as a salon. I am hopeful he will be open to negotiation so there will be no need for any further stress! I am so excited, I was devastated when I thought it might all fall through
:sad:

 

[vonnibabes]

I had to pay £1000 for landlords lease and costs plus 1/3 of the buildings insurance as there is a flat above and takeaway nxt door, we share the building insurance cost but I need to have my own contents/liability etc. my legal fees were £400, did not feel worth it but need must! You can't afford to get shafted! Xxxxx

 

[jennywatkins]

Hi. If you would like to inbox me your number I would gladly help. I am new here but had the same types of problems!!