Informal interview with the shop landlord

Mountus

Hi,

I am in the process of buying a lease currently trading as a restaurant. I am informed by my solicitor that the landlord has not formally accepted me as a tenant because I don't have any trade records. However, is told that the landlord would like to informally interview/meet me instead.

Any ideas why the landlord would like to do this and what should I do to prepare myself for this meeting?

Thanks.

Mattygroves2

He wants to be sure you're capable of running a business efficiently enough to make a profit and pay him his rent. So take your business plan and treat it as seriously as you would an interview with your bank.

Mistral001

As Mountus has said, I would treat it just like an interview with the bank, however banks, one should hope, will treat all information given to them confidentially. Can you guarantee the same with this landlord?


If you do go, perhaps take your accountant along with you. They should know what the landlord needs to know and and what they do not need to know.

Mountus

Thanks.

Maybe it's best I keep the business plan brief with the landlord as Mistral001 had mentioned that what guarantees are there my information will be kept confidential. I am also already offering him a few months rental deposit.

bris

I am going on the usual basis that the LL and current lease holder are 2 different people.

In these cases the current lease holder wants to sell but the buyer may not be accepted by the LL because they are a greater risk than the current lease holder.

A few months rent deposit means nothing, he will already have that from the current lease holder, as well as a lease in place to continue to pay.

You can play it cool all you want but if you don't dazzle him he has nothing to gain by having you as a tenant over the current one.

There will be no hidden agenda, he just wants to know you have something that gives him a bit protection.

As a LL myself I am always suspicious as to why the current tenant wants out, if the business is failing then the tenant finding a patsy to take a fall is not beyond them.

Mistral001

bris wrote: »

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As a LL myself I am always suspicious as to why the current tenant wants out, if the business is failing then the tenant finding a patsy to take a fall is not beyond them.

Maybe the interview is just a fishing trip on the part of the LL to find out if the present leaseholder has divulged anything about the financial health of their business to the OP. But then that would be just too mistrustful of landlords.


Accountant and/or chartered surveyor specialising in commercial property might be useful people to employ here.

colino

Your first line OP would ring bells with me. Is it a failing restaurant/leisure business that you are going to take over and do you have such brilliant ideas that you will succeed where others have failed? Or are you planning on changing the nature of the business from what its, "currently trading" as into something that does have a successful future predicted?
Unless you are going to impress, there is little reason to attend as he will know the tremendous downturn in catering and hospitality and not want a short term problem on his hands.

Mountus

The vendor and his wife just want to sell up and retire. I won't be taking up his current business. I plan on catering a different ethnic cuisine instead.

bris

Mountus wrote: »

The vendor and his wife just want to sell up and retire.

Of course they do, but they are not going to tell you they are now losing money hand over fist now are they.

Don't under estimate the downturn in the hospitality business, it's tough out there now. The LL will also be looking for a bit security, a house on the line perhaps.

Do your home work well, its everybody's dream to have their own restaurant, pup etc but times have changed, it can turn into a nightmare very quickly.