Advice re: lease

ceewash

I am needing some advice regarding my business premises lease and hoping to avoid solicitor's fees.

I am 3 years in to a 5 year lease on my premises. The landlord has indicated that he might want to sell the premises which would not affect the business. His other option was for me to renew the lease for another 5 years with a 3 year break clause as we have now.

My problem is that I might want to sell my business within the next 1-2 years (which I haven't told him). I would like to sell it in the existing premises. I am concerned that if I don't manage to sell my business I would be stuck with the premises and be forced to carry on working for the full 5 years.

Do I need legal advice and do I need a solicitor to read over the lease?
Any comments welcome particularly from anyone from legal background or who was in similar position.
Trying to avoid expensive legal bill.

Wywth

ceewash wrote: »

I am needing some advice regarding my business premises lease and hoping to avoid solicitor's fees.

I am 3 years in to a 5 year lease on my premises. The landlord has indicated that he might want to sell the premises which would not affect the business. His other option was for me to renew the lease for another 5 years with a 3 year break clause as we have now.

My problem is that I might want to sell my business within the next 1-2 years (which I haven't told him). I would like to sell it in the existing premises. I am concerned that if I don't manage to sell my business I would be stuck with the premises and be forced to carry on working for the full 5 years.

Do I need legal advice and do I need a solicitor to read over the lease?
Any comments welcome particularly from anyone from legal background or who was in similar position.
Trying to avoid expensive legal bill.

Yes, always advisable to seek independent legal advice before committing yourself to a long term lease.

(t'internet is not the place to obtain this)

Savvy_Sue

Plus one.

You need a solicitor because we cannot possibly ask all the relevant questions. You need to pay that solicitor, because then it will become advice you can rely on, ie you'll be able to sue the pants off them if they get it wrong. You need advice you can rely on, because if you get it wrong you could be saddled with lease costs even after you've sold your business, never mind if you DON'T sell it.

Get a solicitor who specialises in commercial property.

ceewash

Thanks for your replies. I found a solicitor through the FSB and she gave me lots of free information over the phone which helped me decide what to do. She quoted cost of about £350 for reading over new lease and advising.

COOLTRIKERCHICK

Can you just see your original term out and move???

They can not tie you up to a longer lease.. without concent and a new lease being drawn up. It looks as though he is either trying to make more appealing for a new buyer, who has a longer term tenant..

Def go and see a solicitor as I promise you the money spent on their fees will be money well spent...

Savvy_Sue

Plus one again, I am not sure how much your current rent is, but that £350 could well save you a LOT more than that, and peace of mind is priceless ...

paulwf

Sorry I'm a bit late on this thread but if you haven't hired a solicitor yet why not ask the landlord to cover your legal fees? If you were asking the landlord for a lease amendment you'd be expected to pay their legal fees therefore if they are asking for an amendment they should be paying yours.

You've got nothing to lose by asking, I wouldn't expect to be out of pocket if you are doing the landlord a favour.

ceewash

COOLTRIKERCHICK wrote: »

Can you just see your original term out and move???

They can not tie you up to a longer lease.. without concent and a new lease being drawn up. It looks as though he is either trying to make more appealing for a new buyer, who has a longer term tenant..

Def go and see a solicitor as I promise you the money spent on their fees will be money well spent...

I don't really want to move premises as the location is ideal for my business. Also a longer lease would also be attractive to anyone buying my business.
I have spoken to a solicitor now who gave some v helpful advice regarding lease. It now seems that landlord is very keen for me to buy the premises as it would solve his problems. 10 years ago this might have been on but at 54 I don't know if it is a good idea to even consider a mortgage on the property.

martindow

ceewash wrote: »

I don't really want to move premises as the location is ideal for my business. Also a longer lease would also be attractive to anyone buying my business.
I have spoken to a solicitor now who gave some v helpful advice regarding lease. It now seems that landlord is very keen for me to buy the premises as it would solve his problems. 10 years ago this might have been on but at 54 I don't know if it is a good idea to even consider a mortgage on the property.

I suppose this decision depends on the price. If the LL is desperate for money now and you have two years to go on your lease you are in a strong position to drive a hard bargain.

COOLTRIKERCHICK

ceewash wrote: »

I don't really want to move premises as the location is ideal for my business. Also a longer lease would also be attractive to anyone buying my business.
I have spoken to a solicitor now who gave some v helpful advice regarding lease. It now seems that landlord is very keen for me to buy the premises as it would solve his problems. 10 years ago this might have been on but at 54 I don't know if it is a good idea to even consider a mortgage on the property.

why is he/she so eager to sell??? is it purely down to his financial position? OR does he know something?? maybe he has had the heads up about some new development, road changes, Before you agree to a longer term, to make the selling of your business sweeter, check out with your local council about any changes in the location.. and road traffic flow, possible parking fees being implemented etc...

Also if you do intend to sell the business, make sure it is only the business name on the lease, so there would be no come back on you, if the new owner of your business goes belly up, or does a runner..

Paulwf has a good point... about the landlord paying the legal costs for this