Am i reading this right? If so, Help me understand it like a 5 year old ! (Lease)

[Usernamehere]

Closed down a few business after covid and had a few years off, i have attempted to contact a property that i have seen thats been available for some time,

Lease terms are simple and rent is very cheap at 5k PA, however glancing over the T&c`s i see this;

"The ingoing tenant is responsible for the landlord’s legal costs in connection with the preparation of the lease at a cost of £750 plus VAT and Surveyors fees of £750 plus VAT."

If i understand this correctly, the "inflated" Fees BJB Are requesting equates with vat to around 1.8k? - for pretty much nothing?

All property`s before this i rented didnt come near to this silly price.

Is this something thats negotiable, or are these fees the reason is been on the market for so long.

 

[Mark T Jones]

Everything is negotiable

Is the landlord an independent or a big firm?

 

[Usernamehere]

I thought it was part of the council as its connected to there market but its advertised by Butters John Bee

Everything is negotiable

Is the landlord an independent or a big firm?

 

[Mark T Jones]

I thought it was part of the council as its connected to there market but its advertised by Butters John Bee

They are agents - may or not act for the landlord on an ongoing basis

Remember, there are many facets to a commercial leases- best to get the whole picture before you start negotiating

 

[Usernamehere]

I have further since learned its council charging both fees as its a council property, still seems excessive

 

[WaveJumper]

I think you may find although if its council owned they do very little of the "grunt" work in house these days ie its all 'subbed' out so they probably trying to offset all their costs and save the department some money .....nice if they can get away with it, but as above its all down to negotiation and it might only be a 5k lease but make sure you get independent advice before signing

 

[fisicx]

@Usernamehere - they can charge whatever they want in fees. They can add whatever terms they want in the lease. If you don’t like the fees or the terms go find another property. But it’s quite likely the fees will be similar wherever you go.

And don’t forget, you also need to pay for a survey and your own solicitor.

 

[Usernamehere]

I have messaged back and forth and submitted my final proposal,

I stated with clear in-reguards to my annoyance of the fees and offered reduced rent in the first year to substitute the difference, requested a 37 month lease with first month free for setup. we shall see how this goes.

I remember my first shop lease was signed for £50 in a carpark, how times have changed.

 

[Mark T Jones]

I remember my first shop lease was signed for £50 in a carpark, how times have changed.

I think you got lucky. It hasn't really changed.

There have always been good and bad landlords and good and bad tenants. To the best of my knowledge, the law here has been fairly consistent

 

[Chris Ashdown]

You have already commented that the 5K pa is cheap yet worry about paying 1.k at the end of a 3 year lease to cover landlords costs, try looking at it as a 6k pa lease with no additional costs

 

[Usernamehere]

I think you got lucky. It hasn't really changed.

There have always been good and bad landlords and good and bad tenants. To the best of my knowledge, the law here has been fairly consistent

If i recall correctly, the agent himself pocketed the £50 and completed the signed lease, i was only around 19 at the time so became the normal thought processes after this.

 

[Usernamehere]

You have already commented that the 5K pa is cheap yet worry about paying 1.k at the end of a 3 year lease to cover landlords costs, try looking at it as a 6k pa lease with no additional costs

Maybe you missunderstand matey.

I dont worry about £1,000, i merely expect value for my money and i couldn't extract any value for the 1.8k they were asking up front for services that cost around 15% of that.

 

[fisicx]

You may not see the value but those fees are about what many pay. It’s like a standard rate and independent of the actual cost of the lease.

 

[Chris Ashdown]

Maybe you missunderstand matey.

I dont worry about £1,000, i merely expect value for my money and i couldn't extract any value for the 1.8k they were asking up front for services that cost around 15% of that.

So do the solicitors and surveyors, don't forget if they screw up they will be responsible and £750 is not much for a qualified and skilled person
sorry i miss typed not 1K but 1..5K plus vat

 

[Michael Loveridge]

Landlords will always try to get the tenant to pay the legal costs of preparing the lease, but it's quite unusual to see a bill for the surveyor's fees.

It comes down to who's in the best negotiating position. As you say it's been on the market for a while they may want you more than you want them, so if I were you I'd be inclined to say that it's not normal practice for a tenant to have to pay these fees, and you therefore want them removing so you can pass the draft lease to your solicitor to review.

By giving the impression that you're willing to commit money to legal fees you'll be indicating that this is the only obstacle to the matter proceeding, and I would think they would be prepared to concede at least some, if not all of the fees in order to get the deal.

 

[Chris Ashdown]

As you are paying for the survey, presumably you will receive a copy and that could be very handy in the case of dilapidations at the end of the lease