Leasing business premises - legal aspects

[Tom at Heartwood]

I am about to take on a barn and yard on a farm and have been looking into the legal aspects of property rental agreements.

 

There is useful and straightforward information on the Business Link website (Types of property rental agreement | Business Link).

 

I expect to enter into a Leasing Agreement rather than a License but will aim to include a Break Clause so that I am not committed indefinitely, in case I find somewhere better, move away or buy my own yard and buildings.

 

I expect to have to engage the services of a Solicitor at some point but intend do as much of the preparation as I can first in order to keep legal costs down.

 

If anyone can point me to a sample lease agreement that I could adapt to my needs then I would be glad to hear.

 

Cheers,

 

Tom.

[firewood]

Typically you will receive a lease document from the lessor. This will be your starting point. For negotiation and amendment.

 

Definitely get a solicitor to handle negotiations for you and to review the lease docs.

 

Make sure you go thru every clause and cost with a fine tooth comb.

 

Things i would want.....

 

Tennant only break clauses at suitable points.

 

Fixed service charges with no annual % uplift.

 

 

No additional exceptional charges like a new roof halfway thru the lease term

 

Rental fixed for whole term of lease i.e. No rent reviews at break points.

 

Only 3months notice to terminate at break point if you want to get out.

 

Remember that commercial property is a buyers or renters market at the moment so be a b*****d in negotiations. Be very non commital up to the point of signing the lease. Give the impression that you have several other options that are all equally as good. You will get what you want if you play hardball.

 

Take your time and do not be pressured by the lessor.

 

If you sin in haste you will repent at leisure!!!

 

http://www.kinnoirwoodfuel.co.uk

[firewood]

Forgot to mention that if you have a good series of accounts try to negotiate the amount of the rent deposit down say from 6 to 3 months.

 

http://www.kinnoirwoodfuel.co.uk