Negotiating lease of premises- how to get best/fairest deal?

[bikeman]

I have made an offer on a shop premises substantially lower than the asking rent. I have also asked for an initial rent free period. The lease is 15yr with 5 yearly upwards only reviews.

1. Would employing a chartered surveyor in the initial stages give me a better chance of securing a better rental price?

2. Would a chartered surveyor also be able to negoatiate a shorter term for me. 15 years seems to be very long compared to many others.

3. Can I insist that at the time of the rent review, if I feel it is unrealistic, I have the option of a break clause and if so, what would be a suitable notice period?

4. What is the best way to negotiate a break clause into the deal regardless of rent reviews? I appreciate the landlord needs a reasonable return but I understood that it is not unreasonable to build in a break clause in modern agreements?

Your thoughts and advice would be greatly appreciated as this is my first experience of a commercial rental agreement!

[Paul_f]

In answer to your questions:-




Yes good idea but get an estimate of what they will charge you for advice.
You can do this just as easily yourself.
Definitely worth trying.
If you have a business plan stick to it. You might need a break clause in case your business doesn't work out; if you are not limited in some way you would be held personally responsible.
have a look at the British Property Federation website ww.bpf.co.uk (I think) where a short term (3 years or less) lease can be downloaded for free.


I've also attached a file in pdf format that will let you see what the model terms should be in FRI (full repairing & insuring) leases as recommended.

You'll have to accept that many agents on behalf of their clients choose to ignore such documents and you do not want to be trapped into a situation that oyu can't manage. Stay away if you have any doubts and do take advice. Contact your local Business Link office via your local authority as they have sources that are free to you where you can obtain good advice.