Alternative to security of tenure

Discussion in 'General Business Forum' started by Dk210, May 17, 2019.

  1. Dk210

    Dk210 UKBF Newcomer Free Member

    2 0
    Hi all. First post here as starting out so would welcome and appreciate any advice.

    Im about to start a Physio business and am about to sign a 5 year lease with break at 2.5 years.

    The landlord says security of tenure will be contracted out and won't budge on this.

    My question is are there any good alternatives to this- I.e. What is the next best way to give us some protection to stay there if we wish.

    I have consulted a solicitor and my own idea was to ask for first refusal a year before the end of the contract to allow us time to find somewhere else if needed.

    She said she can write this up as a pre-emption in the lease for an extra £750+vat (we can't claim back vat as a Physio company)

    Is this the best idea or can do you know of any other alternatives?
    Many thanks in advance
    D
     
    Posted: May 17, 2019 By: Dk210 Member since: May 3, 2019
    #1
  2. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    3,935 780
    Do you mean 'contracted out' of the Landlord & Tenant Act 1954?

    Does the landlord have any other businesses, not related to property?

    Could the property be redeveloped within the next 5 years?

    What advice did you solicitor give, apart from telling you the fee for your 'own idea'?

    Is this the first premises you will be occupying? If it is, suggest a 3 year lease with a break clause after 1 year. This will give you time to ensure the business works and you are not tied to a lease which doesn't work for you.

    As a Physio business, how important is it to remain in the same property, as I presume your clients will be coming to you? (I understand it's important to be in the same locality, but moving within a few hundred yards, will that hamper your business?)

    With so many premises available, my advice is to select a property that ticks all your boxes and suggest a 3 year lease (with a 1 year break clause) and within the L&T Act.
     
    Posted: May 18, 2019 at 3:58 AM By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #2
  3. Dk210

    Dk210 UKBF Newcomer Free Member

    2 0
    Hi 'brit' - thanks very much for your reply... appreciate it.
    Yes i mean contracted out - i spotted it in the proposed heads of terms and was told the landlord requires that for all of his short term leases... if it was 10-15 years then he would accept it.

    Re the solicitor - i asked their opinion on my idea and if there were any better ways of doing it that they had seen - they proposed the pre-emption in the lease (for an extra 750 + vat) in order to try and get first refusal... but i am open to other ideas...(and also less expensive ones!)

    This is the first premises alright - we initially requested a 3 year lease with break at one - by the end of it we have a 5 year lease with break at 2.5 but with better yearly rent.

    i agree - as a physio business i think moving property will be ok once we are in same area.. i guess as we are starting out, every step we turn or decision we make seems to cost a lot of money so if we are putting money into the current property we dont want to have to invest again in 5 years time (i guess things change and we will be in a different position then)

    I appreciate your idea.. it is genuinely what we have tried for- but in the area we have found v little in the way of suitable properties over the last year so we are keen to nail down this one. If pre-emption is the best we can do then that may have to be it but would be good if anyone has ever seen any alternatives

    Thanks again
     
    Posted: May 20, 2019 at 10:11 AM By: Dk210 Member since: May 3, 2019
    #3
  4. WaveJumper

    WaveJumper UKBF Regular Free Member

    374 59
    Couple of things to think about:

    if you intend as mentioned putting a lot of money into the property I assume you mean fitting out, if so good idea to ask for a rent free period whilst you undertake this work.

    Also worth mentioning if you are doing a lot of 'fitting out' and then pull out in 2.5 years because it's not going as planned, remember the landlord will want the unit back in the condition you took it. (delaps)

    And finally make sure you do get proper legal advice, you may think it's costly now but could save you a lot of grief in the future
     
    Posted: May 20, 2019 at 10:36 AM By: WaveJumper Member since: Aug 26, 2013
    #4