Business lease question

[red_slr]

Currently lease a property for business use.

We have an agreement with the owner (family) and that's due to expire very soon.
When we renew the lease this time round I want to make it more formal as at the moment we don't have anything "legal" that's in writing.

Q1)
In general who provides the lease is it the land lord or the tenant. I am going to guess the land lord?

Q2)
Either way, can anyone give me an idea what the costs would be for a basic lease for a small ish industrial unit?

Thanks!

[PurpleMoonlight]

Landlord would normally draft the proposed lease.

If you use a solicitor to represent you then costs would likely be £500 - £1000 plus VAT & disbs.

[Billsnemesis]

PurpleMoonlight said:

Landlord would normally draft the proposed lease.

If you use a solicitor to represent you then costs would likely be £500 - £1000 plus VAT & disbs.

Or if you want someone who actually knows what they are doing, about twice that...

[red_slr]

Thanks guys.

[Johnniem]

I am not a Solicitor but I would suggest that you use one. Try to get a lease with the protection of the landlord and tenant Act. If it does not have protection to renew the lease, the landlord may refuse another lease and you will be left with removal and relocation costs (and all the agg that goes with it!). If you have the protection then the landlord can only refuse a new lease if he needs the building for his own occupation or he intends to redevelop the property.

Be aware that you will need to keep the place in good condition (if it isnt in good condition then the lease may require you to put it into good condition. The law states that to keep it in good condition, one must put it into good condition) and there may be a lot of works to do at the end of the lease (reinstate any alterations you make, re-decorate, re-carpet any offices, and repair any defects or damage caused during your occupation). This can be a heavy cost so be prepared! It might be an idea, if you are renting out a less-than-perfect building, to agree a schedule of condition at commencement of your occupation. This will help limit your liability to repair etc at the end of the lease. If you do agree a schedule (loads and loads of photos of all areas, inside and out generally do the trick) then make sure the new lease mentions that you are not expected to put the premises back into any better condition than that shown at the date of the schedule of condition. Your solicitor, if he is good one, should advise you of the terms.

Good luck fella!

[red_slr]

Thanks yes we have been in 5 years already so been doing any repairs etc however we don't have any formal lease which is exactly why I want the legal document.

[PurpleMoonlight]

Billsnemesis said:

Or if you want someone who actually knows what they are doing, about twice that...

Some of the worst solicitors I have come across have charged the highest fees.

[surveyor]

PurpleMoonlight said:

Billsnemesis said:

Or if you want someone who actually knows what they are doing, about twice that...

Some of the worst solicitors I have come across have charged the highest fees.

Some of the worst I have come across charge the lowest...

[tooldtocruise]

I payed £350 for mine and its pretty decent in my favor i think
Any lease is better than no lease

[surveyor]

tooldtocruise said:

I payed £350 for mine and its pretty decent in my favor i think
Any lease is better than no lease

That ranks up there as some of the worst advice ever given on PH.

A bad lease will try a business into liabilities for years to come. No lease they can generally escape on a quarters notice....

[Billsnemesis]

PurpleMoonlight said:

Billsnemesis said:

Or if you want someone who actually knows what they are doing, about twice that...

Some of the worst solicitors I have come across have charged the highest fees.

Is there a smiley to represent dangling the bait and seeing who bites?

The point is, do NOT go on price. Ask around for recommendations and go with someone who gets a thumbs up from someone you trust.

It is true that some high charging lawyers do poor work and we are currently working on a renegotiation where the best option for the client seems to be to sue the previous lawyers for negligence. We would rather reach a compromise but the landlord does not have to negotiate at all so our client is on weak ground.

Having said that I can't see how anyone can negotiate a lease for £500 if they are going to do the job properly. As with anything in life going for the lowest cost option is often a mistake.