New commercial lease... what to ask

[m3sye]

My partner is about to take on her first commercial lease, can you help with some must ask questions when discussing the lease. Thank you

[PurpleMoonlight]

Be sure you understand your liabilities to the landlord:

Rent
Service charge
Insurance
Repair obligations

Is the lease to be included or excluded from security of tenure.

[olivebrown]

Rent free period, ideally 3 months min and break claauses.

[spikeyhead]

From my limited understanding there are only three important things.

Dilapidations, dilapidations and dilapidations.

[dfen5]

Don't forget business rates and cost to get it to a state where it's useable.
Survey, electrical test, gas test, asbestos, heating etc.. Even had to do water quality. Will you have pay landlords costs now and at the end of lease?

Will you be able to take the lease again in three years? Rent fixed or upwards only? Phone system? Can it get decent broadband?

Get a good solicitor. If you can get a unit of the local council, do it.

[loafer123]

As others have said, agree a Schedule of Condition, included as an Annex to the lease/licence with a detailed photographic survey, so you don't get done when you leave.

Personally, I would use an agent to negotiate the rent and other terms.

[Chrisgr31]

assignment and sub-letting

[jammy_basturd]

Does anyone have any recommendations for a solicitor who can help with a commercial lease? Granted it's a "how long is a piece of string question", but are we talking hundreds or thousands to negotiate a lease through a solicitor/agent?

[m3sye]

Thanks everyone

[williaa68]

A surveyor may actually be more use than a solicitor, unless you have one already (and I say that as a solicitor!). A good local surveyor will know the market rent, may know the landlord, what other conditions have been agreed etc. They may also be able to recommend a local solicitor if you need one.

[surveyor]

williaa68 said:

A surveyor may actually be more use than a solicitor, unless you have one already (and I say that as a solicitor!). A good local surveyor will know the market rent, may know the landlord, what other conditions have been agreed etc. They may also be able to recommend a local solicitor if you need one.

It's a good idea, but I think we've all got tired of suggesting this. It's like Homes under the Hammer, everyone thinks they can do it themselves....

[Rangeroverover]

You MUST MUST get a commercial property specialist surveyor to help you out, otherwise you will have V for victim flashing on your forehead.

Do NOT use your normal conveyancing solicitor, it will cost but in the long run will be worth every penny, please don't try and do it yourself, a little knowledge is very dangerous in commercial leases

[Muncher]

jammy_basturd said:

Does anyone have any recommendations for a solicitor who can help with a commercial lease? Granted it's a "how long is a piece of string question", but are we talking hundreds or thousands to negotiate a lease through a solicitor/agent?

Drop me a PM if you like, it's my bread and butter. The answer is usually "it depends".

[jammy_basturd]

Rangeroverover said:

You MUST MUST get a commercial property specialist surveyor to help you out, otherwise you will have V for victim flashing on your forehead.

Do NOT use your normal conveyancing solicitor, it will cost but in the long run will be worth every penny, please don't try and do it yourself, a little knowledge is very dangerous in commercial leases

Would you say this is true even if you're only responsible for the interior/decor?

[jammy_basturd]

Muncher said:

jammy_basturd said:

Does anyone have any recommendations for a solicitor who can help with a commercial lease? Granted it's a "how long is a piece of string question", but are we talking hundreds or thousands to negotiate a lease through a solicitor/agent?

Drop me a PM if you like, it's my bread and butter. The answer is usually "it depends".

Thanks, PM sent.

Thank you to cowboyengineer too for your recommendation.

[voicey]

I've been following this thread with interest as I may be in a position to lease my own unit next year. What ballpark figures is one talking about for a surveyor to help out? Or does it depend on the building size?

Also, when would one engage a surveyor?

Thanks...

[Chrisgr31]

Its usually based on a percentage of the rent/price. However one may want to incentivise it around amount of rent free, or deduction from asking rent etc.