Lease help please

[Deleted member 42737]

I want to purchase a lease on an empty shop unit a) it's advertised at 15K pa, am I able to put in a lower offer for the lease as you would if buying a house? and b) What happens if the business is unsucessfull after say, a number of years, will we have to pay the remainder of the lease even if we stop trading completely. Are their any options if we go out of business?

 

[Podgkin]

The way the market is at the moment, I'm sure they'll take an offer on the Lease.

As for paying if you 'fail', they'll have to recover their costs the same way every creditor has to, surely?

Where's the legal chaps on here?
Have you tried searching through these Forums for a similar case?

 

[My Owl 1]

Get a damn good solicitor who can negoitate what you feel comfortable with.

Go for it and good luck..... By the way if your want affordable utilities for your shop pm me

Best wishes for 2009

Avril
www.savemoneywithus.co.uk

 

[Deleted member 42737]

Thanks for the promt replies, fantasticHave tried searching for answers to second part of my query could still do with some advice?
Hughie

 

[Bri]

There will probably be a rent deposit, say three months up front and with a suitable three month notice period for both parties. There are two schools of thought, legal and non legal route.

I was assured by one landlord that solicitors werent required, bearing in mind these were brand spanking new units built and financed by him, his attitude was youre gonna know within three months of your business going t**s up, just let me know as I'm pretty flexible cos there always gonna be three months to look for a new tenant.This was May 2008, and coincidentally drove past them today, they are full occupancy, still looks brand spanking new and clean.Hats off to the guy.

And yes, I'm sure all rent is negotiable at the moment, especially units that have been empty for a while.

 

[My Owl 1]

Negotiate a break clause in your lease could help you with the secondpart of your question

Avril
www.savemoneywithus.co.uk

 

[Emily Caver]

Hello:
If your business is not successful, you are able to finish the leasing at any moment. The leasing arrangements are not closed forever!
Emily Caver
Designer
Tokyo

 

[deniser]

I want to purchase a lease on an empty shop unit a) it's advertised at 15K pa, am I able to put in a lower offer for the lease as you would if buying a house? and b) What happens if the business is unsucessfull after say, a number of years, will we have to pay the remainder of the lease even if we stop trading completely. Are their any options if we go out of business?

a) yes
b) you will be liable to continue to pay the rent and observe all the obligations of the tenant in the lease until the sooner of:
1. the expiry of the lease
2. you selling it to a buyer with the landlord's consent
3. the lease being disclaimed by a liquidator but by then you are in serious trouble anyway.
4. you exercising a break option (if you have built one in at the outset)
5. the landlord accepting a surrender (usually on payment of a large premium by you)
6. the landlord forfeiting the lease - only after all other avenues have been pursued against you for recovery of the money

So in short, the answer is yes, you continue to be liable regardless of how the business is doing. You will also be liable for the persom who buys it frmo you if you sell it on. As has already been mentioned, make sure you agree break options.