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Commercial property lease terms?

Discussion in 'Legal' started by Matt-LW, Mar 3, 2018.

  1. Matt-LW

    Matt-LW UKBF Contributor Free Member

    64 0
    Hi,

    First time looking at renting a small storage unit myself. Potential Landlord has sent me copy of a proposed contract which I am not particularly satisfied with as there seems to be a lot of contradiction, and a lot of liability put on the tenant by the terms.

    Small space, couple of hundred pounds rent PCM, 12 month term, but a lot of liability for the structure, insurance and other potential costs that 'might' come up. Landlord is a small business who own's some barns on there site and seem friendly and amenable, but the paper work reads like a

    So my question is what sort of Legal Beagle do I need to have a look at, explain, question and suggest ways/amendments to limit liability? Also is that something that ca be done via email or does it require a face to face (i.e. finding someone anywhere vs needing to find local)?

    Cheers,

    matt
     
    Posted: Mar 3, 2018 By: Matt-LW Member since: Dec 17, 2012
    #1
  2. kulture

    kulture UKBF Legend Staff Member

    7,561 2,058
    You need to hire a commercial solicitor. One who is used to dealing with commercial property leases. Do not sign any commercial lease without proper legal advice. There is SO MUCH that can go wrong and absolutely no protection than consumers would get.
     
    Posted: Mar 3, 2018 By: kulture Member since: Aug 11, 2007
    #2
  3. Matt-LW

    Matt-LW UKBF Contributor Free Member

    64 0
    Doing some reading and thinking..

    Can anyone recommend any decent commercial solicitors?

    And give any idea what would be considered reasonable as far as fees go, for;

    Ideally that can deal with a short term lease (LL seemed reluctant to go beyond 1 year), for a small rent totalling around £3500 in rent per year. Sounding like it would cost nearly as much in legal fees from a few of the first google hit's.... which makes things totally un-viable....
     
    Posted: Mar 4, 2018 By: Matt-LW Member since: Dec 17, 2012
    #3
  4. Toby Willows

    Toby Willows UKBF Regular Free Member

    760 164
    Absolutely use a commercial solicitor, don’t sign anything until it’s all been fought out between your solicitor and theirs and your happy with the outcome.

    With a commercial lease you’ll be lucky to get away with anything less than a FRI (Full Repairing and Insuring) lease, it’s pretty much the norm so the lease as it stands may not be a million miles away from what you end up with.

    Look at paying around £1,500 to £2,000 for the solicitor, that’s very ball park from what I’ve gleaned from your post.
     
    Posted: Mar 4, 2018 By: Toby Willows Member since: Jun 20, 2016
    #4
  5. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,240 1,877
    There is a reason to use a solicitor, the lease can be a minefield especially at the end of the lease when dilapidation's can cost a fortune for those who have not had a survey done at the start,

    Insurance what normally happens is the landlord takes out building insurance in case you burn it down, he then adds VAT to that bill and forwards a invoice to you to pay

    You in tern need your own insurance

    His contract is what he wants your solicitor will fight anything he sees as unreasonable and between them come to a common agreement

    What will you do after one year having paid deposits for landline, electricity and broadband
     
    Posted: Mar 4, 2018 By: Chris Ashdown Member since: Dec 7, 2003
    #5
  6. Matt-LW

    Matt-LW UKBF Contributor Free Member

    64 0
    Ouch, for my micro business that would be a big hit and not really financially viable ... And thus the potential liability even more so.... Dilemma.....
     
    Posted: Mar 4, 2018 By: Matt-LW Member since: Dec 17, 2012
    #6
  7. ethical PR

    ethical PR UKBF Legend Free Member

    6,703 1,467
    Sounds like you would be better off working from home if you can.
     
    Posted: Mar 5, 2018 By: ethical PR Member since: Apr 19, 2009
    #7
  8. Matt-LW

    Matt-LW UKBF Contributor Free Member

    64 0
    Not much of an option in a first floor flat, a tool box and a laptop is about all I can store at home... Also would guess presents more of a challenge with the taxman?!
     
    Posted: Mar 5, 2018 By: Matt-LW Member since: Dec 17, 2012
    #8
  9. Mr D

    Mr D UKBF Legend Free Member

    7,454 777
    So find somewhere else.

    You WILL need to consult a commercial solicitor over a lease elsewhere too, what you save on legal fees can be a small fraction of what you end up paying. If something goes wrong.
    Or may not go wrong, may simply be that you end up signing that you agree to do something at the end of the lease that you cannot afford.
    Have heard of people with big bills as a result of not paying for legal advice / negotiation.
     
    Posted: Mar 5, 2018 By: Mr D Member since: Feb 12, 2017
    #9
  10. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,240 1,877
    Try your local town hall planning department they normally have small starter units and offices in run down area's that are on very basic leases
     
    Posted: Mar 5, 2018 By: Chris Ashdown Member since: Dec 7, 2003
    #10
  11. lesliedocherty

    lesliedocherty UKBF Ace Free Member

    2,099 283
    We use a local storage place for extra storage, open 7 days a week until 9pm, they take in deliveries, have wi-fi, power, canteen, toilet, we went there as a stop-gap to getting a more permanent bigger unit.
    When we realised we had no rates, no electricity, no hassle, no repairing we wondered why we would want to take on our own unit, we pay a monthly fee and that's it, works really well for us.

    AND, at xmas there we took on an extra unit next door for holding more stock, had it for 2 months then handed it back, the flexibility is great.
     
    Posted: Mar 6, 2018 By: lesliedocherty Member since: Jun 17, 2006
    #11