Leasing a shop - contract

herbz100

Hi all, we are hoping to set up our first business and hoping to lease a small premises . The cost will be £1400 PM and no council tax due to size and first time business. Lease is around 15 years and comes with a built kitchen and toilet which is ideal for us as we are hoping to convert it in to a cafe.

What else should I be looking out for in the contract and what other questions should be asked? Thanks

Manxman_in_exile

I'd talk to a solicitor.

CIS

You need specialist advice as business contracts don't have anywhere near the amount of protection that consumer contracts have. It is very easy to unwittingly sign up to something that you can't get out of.

00ec25

are you really as innocent you appear? Is that really the only things you have found out so far? rent and no NNDR?

cafe? so possible change of use required ?

15 year lease - so repairing obligations ?

as above go ask your solicitor to look over the lease. Make sure you get a solicitor versed in commercial work, not residential houses.

what else is in your business plan besides the existence of a toilet?

phill99

I am a Chartered Surveyor of some 30 years standing. I would say this: you must get (and expect to pay for) legal advice when taking on a commercial lease. It is fraught with problems and has no comparison whatsoever to renting a house.


Ignore this advice at your peril.

Weave

Definitely get a solicitor that specialises in commercial leases. They are complicated and will most likely favour the landlord considerably over you if you do not have a solicitor on your side.

They are expensive but can save you a lot of problems such as ensuring you have a protected lease, have break clauses that don't just favour the landlord. There will also be rent reviews included in the lease that you need to understand to protect your business in the future.

Good luck.

daveyjp

A few questions to find answers to.

Can you use it as a cafe?
Rent?
Payments dates?
Rent free?
Lease type. Contracted in our out?
New lease? Sub lease? Assignment of lease?
Repairs responsibility?
Insurance responsibility?
Maintenance charges?
Service charges?
Break clauses?
Schedule of condition?
Legal fees?
VAT?
Permissions?
Keep open clause?
Access for landlord?