Commercial property letting

needtosavecash

Thanks For your input

BitterAndTwisted

I'd do the 12 month licence to start with. Keep the liabilities as low as possible at the very beginning of a new business. Have you crunched the numbers into your business plan?

phill99

70% of busines failures occur within the first 18 months of a business starting up.

If you are setting up as a sole trader you will be personally liable for the rent for the three years if you go for the three year lease deal. So if your business fails after 12 months, you could be left with a liability for 2 years after that.

A 12 month licence is a better and more flexible option for a new businesss.

In terms of paying the landlords legal fees, this is a standard term in commercial lettings, so unfortunately you will just have to take it on the chin!!

Good luck with whatever you do.

property.advert

The first thing you have to do is to slow down. The second is to stop bending over to get shafted so easily.

The economy is down in the toilet and landlords are seeing empty property sitting there month after month, year after year. As such, there is no standard term any more and everything is negotiable.

I'd want a rent free period, then perhaps half rent for a further period and no rent increases for at least 3 years, possibly more. At X years I'd want to know the rent increase and I'd want a break clause on my side at that point. Both parties to pay their own fees.

You pay your 3 month deposit which, in the real world, is insurance against your having to break the lease. Whatever you do, do not take out the lease in your own name: it must be in the name of the company.

What about your surveyor's fees ? Is the proposed lease full repairing and insuring ? If you don't know, you can't sign anything because you are way behind in what you need to know.

Get over to http://www.ukbusinessforums.co.uk/forums/ and ask the professionals. You need help from people who know about this and deal with it every day.

needtosavecash

Thanks for that il nip over there now

And yes i am hopefully going to be meeting next week with him so if iv got a decent idea what I need to ask/do to get a better deal will defo help

And also yes I am liable for any internal or external repairs or to keep it inna good state of repair! I have already queried for more info on what exactly is expected in regards to that!

Annisele

Commercial leases are very different to residential ones. If you're not 100% sure you understand the lease, you'll want to run it by a solicitor.

For example, with a residential property you're usually only responsible for returning it to the landlord in the same state you got it, less wear and tear. With a commercial property, depending on the type of lease you can be required to return it to the landlord in a much better state than it was in when it was handed to you - to the point of being required to fully restore something that used to be derelict.