Lease Advice Please

dottygirl

Hi I am getting closer to opening my coffee shop. The landlord has now given the ok for planning permission to go in. They (landlord) want to restrict the use of the cafe 80% cafe 20% retail. I have asked for 70% cafe 30 % retail (I will take advice on this however Im not sure about how I can keep to this).

They also want me to sign an agreement that (not sure of correct term) is out of the landlord contract. I will take legal advice on this. They will give me a 5 yr lease with a break at 3 yrs but they wont repeat this at the end of 5 yrs. Hope this makes sense. Im waiting for agent to email me the details. I am going on a business link course next week (managing money) however not sure if I will get an answer on this. Thank you for reading this far. As always I will be grateful for your views.

chalkie99

Sounds like they want to put you outside the Landlords and Tenants Act which is not a good thing for you - the act gives you (basically) the right to extend your lease on expiry and it seems they want to stop you having this right.

Don't sign anything without having a solicitor go through it with you.

dottygirl

Thank you C thats what they want to do. The shop has been empty a year and I will be spending quite a lot on changing it into a coffeeshop fairtrade shop. I certainly wont sign anything without a retail solicitor going through the paperwork x

Flat_Eric

yes i agree with the other poster. It sounds like the Landlord wants to stop you having an automatic right to renew your tenancy at the end of the term. Its very important that you get advice re this from your solicitor. Don't sign anything until you have gone through everything with a fine toothcomb with your solicitor

sjbrun

All landlords now ask you to sign out for it. If they dont or you request not to they often raise the cost of the lease.

Its very difficult to find somewhere that wont do this. You need to get a statutory declaration. Be very careful about this, if you go through a solicitor they will advise you and push for this not to get done but in the process you could be racking up thousands in solicitors bills without realising. They charge for every phone call they make and ever letter and email to the other side.

If your paying the rent the landlord will keep you in, if your constantly late they will get someone else in.

jexygirl

be sure to read lease terms and conditions - landlord and tennant act in England, may seem like a good idea, as you as tennant are entitled to get half as much term again for no premium, but be sure to make sure you aren't also tied by an AGA whereby you cant sell on unless you sign it, agreeing to pay whoever you sign it over to's rent if they default...

Flat_Eric

sjbrun wrote: »

All landlords now ask you to sign out for it. If they dont or you request not to they often raise the cost of the lease.

Its very difficult to find somewhere that wont do this. You need to get a statutory declaration. Be very careful about this, if you go through a solicitor they will advise you and push for this not to get done but in the process you could be racking up thousands in solicitors bills without realising. They charge for every phone call they make and ever letter and email to the other side.

If your paying the rent the landlord will keep you in, if your constantly late they will get someone else in.

Does the Landlord have a solicitor ? If so then they (the Landlord's solicitor) will prepare the documentation - i.e. the Lease and any related documents including the paperwork to exclude the Landlord and Tenant Act 1954.

What has the Landlord said about what will happen at the end of the term ? Has he indicated that he will be happy for you to remain if all goes well with your tenancy ?

jexygirl wrote: »

be sure to read lease terms and conditions - landlord and tennant act in England, may seem like a good idea, as you as tennant are entitled to get half as much term again for no premium, but be sure to make sure you aren't also tied by an AGA whereby you cant sell on unless you sign it, agreeing to pay whoever you sign it over to's rent if they default...

Its important that you understand what you are signing which is why employing a solicitor at the outset to go through all the paperwork with you is worth its weight in gold. Shop around and try to get a solicitor who will undertake the work for a fixed fee. If your Lease term is indeed only going to be 5 years then I would speculate that a simpler form of Lease would be entered into rather than an all signing all dancing 50 page Lease. I'd post on the house buying and what not board because there are quite a few legal people who post on there and can probably advise better than me.

sjbrun

The way i see it is that the more expensive shop fit you need the longer lease you should take out to cover the shop fitting costs in case.

Dont forget to request break clauses in case it doesnt work out so you can get out early however they may have a forfit for them.