Commercial Lease easy in easy out

Discussion in 'Legal' started by Esk247, Jul 7, 2012.

  1. Esk247

    Esk247 UKBF Newcomer Free Member

    Posts: 7,756 Likes: 1,513
    For the shop I'll always use a Commercial Solicitor when dealing with leases, however, we've just received our draft lease through for an office unit and I don't know whether to send this on to the Solicitor for review because he's quoting another £500 to look over it.

    The Lease is all written up, easy in easy out terms, 12 month contract but we can leave by handing in notice 3 months in advance (all written in the lease). Our liability is all non structural, we are responsible for damages to the windows on the office and the fire doors but the landlord is responsible for all structural items, underfloor structure, waste pipes, corridor lighting and heating, buildings insurance, 3rd party insurance. We pay a fixed quarterly fee for all of the costs based on our sq.ft of space etc. All of this is included in the draft lease sent from their solicitors.

    Do I need to send this on to the Solicitors and fork out another £500? or with it being easy in easy out and only 12 months, which we can afford to pay in one full amount today if we fancied it, is it less complex and can i save that money?
     
    Posted: Jul 7, 2012 By: Esk247 Member since: Oct 6, 2008
    #1
  2. arcon5

    arcon5 UKBF Newcomer Free Member

    Posts: 2,556 Likes: 496
    I think the general consensus around here is always use a solicitor, supported by the many horror stories that have been posted over the years. Although admittedly I can see your temptation in going it alone, it would be hard for anybody to comment without seeing the lease.

    For example, if the lease states the LL is responsible for X, Y and Z my initial thought would be 'what about A, B, C because it would be near impossible to list everything that could go wrong with the building and list it as the LLs responsibility, therefore my trail of thought would be if the LL then said 'the lease doesn't include such under the LLs responsibilities and obligations' and we want a contribution.

    If though, the lease said 'Tenant X is responsible for the following and nothing more: x, y, z with an upper limit of Y' then it would be much harder for the LL to come after you based on the interpretation of the lease.

    I hope my trail of thought is making sense here.

    I suppose a way of limiting liability would be to sign to lease in the name of a seperate Ltd so if problems do arise you can effectively protect yourself and your main company (LL might not like this though, unless you pay a lump sum in advance).

    I suppose the fact it is an office makes it a little easier since if problems arose and you have to relocate then the impact on your business would be minimal compared to a retail shop for example who would have to re-fit a shop and re-direct their customer base.

    For me it would also depend on how long the lease is. The longer it is the more likely you are to miss something crucial. If you plan on being there for a couple of years, the £500 really breaks down as £20/month, so it really depends on whether it is worth it for you.

    That's just my thoughts anyway.

    .
     
    Last edited: Jul 7, 2012
    Posted: Jul 7, 2012 By: arcon5 Member since: Sep 6, 2006
    #2
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  3. Esk247

    Esk247 UKBF Newcomer Free Member

    Posts: 7,756 Likes: 1,513
    Indeed. Think i'll pop it across to the Solicitors on Monday, he'll sit on it for a week or two but at least we won't have any nightmares.

    It's in a Ltd Company name but as usual, personal guarantees are required these days. The PG is for 12 months.

    It's quite a detailed 16 page document, there are other small businesses on the same floor and the floors above who are local yokels and say the landlord has been fine, but you never know, £500 could save me £5k i guess.

    The rent and rates come in and under £3k for the year, so i was tempted just to sign it as i can afford to pay that outright already.
     
    Last edited: Jul 7, 2012
    Posted: Jul 7, 2012 By: Esk247 Member since: Oct 6, 2008
    #3
  4. arcon5

    arcon5 UKBF Newcomer Free Member

    Posts: 2,556 Likes: 496
    How did you got in with this lease in the end op?

    (just being nosey) :)
     
    Posted: Jul 14, 2012 By: arcon5 Member since: Sep 6, 2006
    #4
  5. Esk247

    Esk247 UKBF Newcomer Free Member

    Posts: 7,756 Likes: 1,513
    Still waiting on the Solicitors. It took 2 months for their Solicitors to send me the draft in the first place, it could be another 2/3 weeks before i see the final draft, then we have to have a meeting so everything can be signed and then we'll have to wait another 2/3 weeks for confirmation that its all gone through.

    This is just for a small office, not an entire retail park. :eek:
     
    Posted: Jul 14, 2012 By: Esk247 Member since: Oct 6, 2008
    #5
  6. kulture

    kulture UKBF Legend Staff Member

    Posts: 6,645 Likes: 1,818
    Solicitors only know one speed.
     
    Posted: Jul 14, 2012 By: kulture Member since: Aug 11, 2007
    #6