Buying a Lease or Business?
Most commercial property is leasehold. If you are buying, remember that leases are drafted by the landlord’s solicitors and are often heavily weighted in the landlords favour. The most important time for trying to get a proper balance into the lease is right at the beginning of the negotiations, before you have committed yourself and before the landlord or it's agent really knows you want the property. While they still think they could lose you they are more likely to make concessions. When they know you are committed emotionally, even if not legally, they will be more likely to negotiate harder.
In an ideal world you would consult us before making an offer. We would then advise you on the terms to try and agree, such as:
- A rent free period to cover the cost of refurbishment or fitting out
- Each side paying its own legal fees (beware of agreeing to pay the landlord’s legal fees). If you must, at least agree a maximum contribution and not an open cheque
- A break clause allowing you to get out at the first rent review, if the business has been unsuccessful or the new rent is too high
- No personal guarantees
- Reasonable rent review and assignment clauses
At A W Law, we have over 20 years experience in helping and advising businesses in their property transactions. We want you to succeed in your business venture.
For advice on your business transactions,
call Andrew on 01372 469100 or email andrewwills@aw-law.co.uk