Car Sales Forecourt Business Lease

[JimmyConwayNW]

Hi,

I currently run a car sales business. Current pitch is rented on a very flexible short term lease with a relaxed and laidback landlord who so long as he gets paid on time leaves us to it. Business has outgrown the available space and now has come the time to relocate.

I have seen one commercial site on a main road locally which is a great spot for us and have had some negotiations with the agents.
I am very wary of entering into any lease agreement to having been burnt previously with another commercial lease.

Can anyone advise me the best ways to protect myself when entering into an agreement like this as I think its important to plan for both scenarios of the business doing well, and ultimately the business going badly.

[Ken Sington]

Get some advice from a local commercial estate agent and a switched on solicitor. Don't know the market in your part of the world, but hopefully you can negotaite either a short lease, or a longer one with break options.

[Chrisgr31]

Slightly surprised those more specialised in the subject haven't been along yet.

However assuming this is in England I would recommend that you want a lease that is protected under the 54 Act so that once you have built up your trade and reputation you cannot be held over a barrel on renewal. At the same time you either need a lease for a short term or with breaks.

As Ken syss switched on commercial surveyor and solicitors are required to ensure the terms are as tenant friendly as possible. Spending pounds now will save pounds in the future!

[surveyor]

If your going want out options you need break clause or clauses.... The landlord will not want these, so you'll have to negotiate.

Also beware as not all clauses are equal... Read the wording. You do not want them to be conditional on anything other than the notice period. If the landlord insists the conditional on basic rent only - define basic rent as rent of the premises excluding insurance, service charge or any other form of additional rent. If unsure take advice. Your ideal break clause is a rolling one, which means you can give notice at any time. Don't expect to achieve this.

Condition - Carry our or have done a schedule of condition that documents the condition of the premises at the start of the lease. Make sure the actual lease refers to this - you don't want to be responsible for improving the condition of the property....