Best lease terms??

[Kensington2010]

Im going to put an offer in on a shop lease this week that looks perfect for me. Its going to be a sandwich shop/takeaway. Obviously a lot of empty shops at the minute so am keen to negotiate best deal.

Its the first time I've done this so I was wondering if any of you had any tips.

The shop is advertised at £9000 PA, when I went to look round it one of the first things the agent said was, 'if you take a 5 year lease we'll do a years rent free'.

What sort of things should I be trying to get included in the lease? essentials and bonus things? Its been empty for 4 or 5 years.

Also there is a service charge as its part of an arcade, so this shop pays 10% of the service costs. but this is uncapped and not negotiable at all. Like they wouldn't cap it.

And anything to watch out for?

Cheers.

 

[Richie N]

A year's rent free for a 5 year lease is very generous.
Request a break clause in the lease, preferably after 3 years if you can.
The service charge should cover the buildings insurance so this a cost for tenants in all properties usually.
Does it have A5 licence for hot food /take away? If it's sit down you could have A3.