can anyone advise

[Shelley]

I rent a shop and took over the a lease for the last 2 years( the other tenant signed a 10year and wanted out) So the lease is now up in march. Should i now be treated as a new tenant. There are alot of costs now coming up and needed to know how i stand. Trying to do alot of ground work before i contact a solicitor. Hope that makes sense.
Also does anyone know if a 100% repairing lease is standard on commercial property. This is all still new to me.

 

[fastfences]

Hi Shelley,

Was the former lease 'assigned' to you, or was a totally new document executed?
cheers, Nigel

 

[KM-Tiger]

Also does anyone know if a 100% repairing lease is standard on commercial property

It often is, but my experience of this is that everything is up for negotiation depending on the state of the market at the time. Certainly I've had a lease that excluded external repairs, but it took some getting.

If you've been a good tenant - ie paid your rent bang on time - your landlord won't want to lose you, so you need to make them think that they might.

You would do well, IMHO, to consult a solicitor earlier rather than later, as much will depend on the T's & C's of the existing lease, and the exact method used when you took over the lease, was it assigned or are you subletting?

 

[Shelley]

The lease was assigned.
They are asking for building to be put back in to order also. But i have spent a fortune on it already so am looking for some negoitons on this. So i am very good tenant, rent always on time and so forth.

Cheers

 

[Jayne]

Hi Shelly,

I'd go see a solicitor soon, make a list of things bothering you, so you don't forget anything to ask him. You can negotiate terms with your landlord through your solicitor, but it is hard to change if the landlord wants to get out of doing repairs.

Our old lease was like that, we had to do all repairs and pay the landlords building insurance. Our lease was for 6 years with a 3 year rent review, this is classed as standard. It important you get it sorted now, or you'll be stuck with an agreement you are not happy with for the next 10 years.

Jayne

 

[Hayles]

Hi Shelley

I'm not a legal boffin but this is based on my recent personal experience.

Have you been assigned the lease? Unless you've been assigned the lease from the previous tenant (which is usually done through solicitors and the property's landlord), you won't be the current legal tenant (and in fact you may be in breach of the previous tenant's contract).

However, I have a lease on a shop but I wanted out 4 years ago. A friend tookover the shop and contacted the landlords to advise we wanted the lease changed (assigned) to her name (but this never actually happened). Long story but to cut it short, she stopped paying the rent. But, because the landlords had accepted cheques directly from my friend in the past I wasn't taken to court for the outstanding rent as apparently (I took legal advice), there was a chance that by accepting her previous payments, it could be said they had accepted her as the new tenant. Maybe this would apply to you. (Grey area I was told!)

(There again, if your lease doesn't allow you first refusal on a further lease then it won't matter if you're official the current tenant or not will it? There's an opt-out clause in our pub contract meaning the landlords don't have to renew it to us - this is an important clause but I can't remember its name, sorry)

What sort of relationship do you have with the landlords? Can't you contact them for a chat? And remember you can get 30 mins free advice from most solicitors - make use of it!

100% self repairing leases are usual on commercial premises from my experiences (3 premises) :cry:

It can get really complicated if the landlord wants to play everything by the book so do look into it properly.

 

[Shelley]

Thanks guys, i know youre right. Its just bugging as have to pay all landlord costs also. So just trying to hold back as i can see its going to cost a fortune. Thnaks for all your input. HAppy new year.

 

[Hayles]

Hi again,

Sorry, I stopped half way through my post to have a cuppa and now you've answered re assignment anyway! I'll get back to my toast now then... :wink:

 

[Shelley]

No probs!!! The more input the better!!!

 

[KM-Tiger]

A couple of further thoughts other than get professional advice now:-

Beware stamp duty on leases. The sneak thief that lives at 11 Downing St upped this a year or two back. I don't rent anymore so I'm not up to date on this, but I think the length of lease matters a lot.

Will your landlord sell? Buying would be a big wall to climb, but would serve you better in the long term than a pension fund, and I read somewhere recently that some institutions are now offering 80% LTV on commercial property, which would make it easier.

 

[Hayles]

I know where you can get 85% LTV commercial mortgage, based on the value of the property not the business. Obviously more expensive but less hassle getting it approved.

 

[Shelley]

thanks everyone for advice but buying isnt a option at present.