Business Premises Lease/Tenancy

Savvy_Sue

dottygirl wrote: »

Hi Im about to open a coffee shop that used to be a hairdressers! I had a call from my solicitor to say he has received a letter from the landlords lawyer to say they want £1200 to grant me a licence to change the interior of the shop! Must admit I didnt see this coming. My solicitor did say this was standard practise but it was a large amount!I wish you well x

And who's doing the planning permission for change of use?

paulwf

Savvy_Sue wrote: »

BTW, I think someone here (can't remember who but they seem to know what they are talking about) reckons that using an agent is well worth while, for several reasons. It doesn't get personal between you and the LL, the agent knows all the tricks the LL will try to pull and will counter them, the agent knows when to walk away and wait for the LL to make a better offer etc.

That would probably be me

Leave it to the professionals, there are people that handle this sort of thing day in day out, they know 100 times more than us lay people will ever know. Commercial property negotiations also seems to run on a bit of an old boys network, you need to know the right people and neither you or I have those connections.

It is an absolute no brainer, the cost of an agent will be saved many times over in reduced rent and rent free period. Use one that only charges if they get completion (a bit like no win no fee) so you have nothing to lose. All the extras they get you - and all the hassle they save - will be a bonus.

Catering is a numbers game i.e. a huge number of small transactions so location is key. You are NOT a destination store, you have to be in the right place for passing trade. No way would I make the first move in a new development.

Don't forget to chat with the council first, chances are there are rules on seating, toilet provisions, extraction fans, perhaps hours of operation, hours of deliveries and so on. If you don't check out the red tape you may find there are lots of council regulations restricting your business.

paulwf

tushingham wrote: »

The agreement states that the landlpord pays for insurance and is reimbursed by tenant. Is this normal? Theres no incentive for landlord to shop aorund for a 'good deal'. Is it worth having a 3 quote clause or somthing like that?

It's normal. As they don't pay they probably won't care if you shop around but they will get a bulk rate so will get the better deal anyway.

Please remember - this is only buildings insurance! You will still need your normal business insurance (package covers employee cover, public liability, theft etc) so you actually have two lots of insurance to budget for.

Flat_Eric

dottygirl wrote: »

Hi Im about to open a coffee shop that used to be a hairdressers! I had a call from my solicitor to say he has received a letter from the landlords lawyer to say they want £1200 to grant me a licence to change the interior of the shop! Must admit I didnt see this coming. My solicitor did say this was standard practise but it was a large amount!I wish you well x

if it was previously a hair dressers and you are opening a coffee shop then do you have permission from the Local Authority to do so ? I don't understand why the landlord wants you to pay him £1200 unless he is making the application for change of use ?

Its all well and good the Landlord granting you a licence to have your coffee shop but permission needs to be sought from the Council also - they have granted permission for the premises to be used as a hair dressers not a coffee shop. google town and country use classes order

lincroft1710

For food consumption on the premises, the property will need A3 planning use class, hot food takeaway will need A5.

dottygirl

Hi I have already put in for change of use (with landlords permission) and I paid for this. Hope this helps x

s_b

im excited at the thought of doing this but being very very cautious!
still investingating many aspects (not just lease) of whether this could be a viable business opportunity or not.

i was batting for you till i read this
madness
anyway a 15 year lease is commercial suicide unless you are a multi business owner with your own inhouse legal team
i suggest you open the kebab van at the end of the street and see what business you can drum up prior to putting your head into a tied in lease
you can appeal excessive rent reviews by the way
as said things change very quickly in the retail world and 5 years down the line your only customers might be bulrushes

tushingham

s_b wrote: »

i was batting for you till i read this
madness

Hi. Thanks for batting for me initially. could you clarify why you thought the bit u quoted is madness? Would be useful to know.

cheers
T

Flat_Eric

Its not what the Landlord wants that you should agree to, its whats you want that the Landlord needs to agree to. What term do you want ? how much is the average kebab (don't know myself never bought one) so how many of them will you have to sell a week to cover your £17,000 a year rent ? then of course there is stock, wages, insurance and a zillion other things i can't think of at this early time in the morning !

you must get a tenant's only break clause included in the Lease and I would seriously consider whether you want to be selling kebabs for the next fifteen years when considering the term you want.

Suarez

From a rough profit/loss account you would have to take over £250 a day to BREAK EVEN..