- Original Poster
- #1
Just looking to pick the brain of someone with a bit more experience of commerical property than myself...
I'm negotating with a letting agent for the lease of a property we've identified as being suitable for our new coffee house. The property schedule states the rateable value is £12,000 per annum and this is the annual rent that the landlord is holding out for, although they are willing to offer rent of £7,500 p/a for the first two years before going to £12k in year 3.
After chatting to the local assessors this afternoon I've discovered that the rateable value is actually £11K p/a. The agents are a reputable local firm and I'm certain this is an oversight. More importantly though, I'm thinking that, in the current financial climate, there's no way I should be paying over the rateable value - which I understand to be a pretty accurate indication of what the annual rental figure the property should command.
Am I placing too much importance on the rateable value or should this be seen as a pretty good rule of thumb as to what I should be offering?
The property is in Scotland and the current rateable value was set in April 2010.
As an aside to this, the assessors told me today that there is an appeal pending in relation to rateable value - presumably instigated by the landlords as the property has been vacant since early April. My logic says to me that the landlords have a hard neck asking me to pay £1K over the rateable value whilst at the same time appealing to the assessors that the rateable value is too high!
I've got a solicitor who will go over the fine details of the lease prior to me agreeing to anything but he agreed there's no harm in me negotatiating heads of terms such as rental figures, lease length, etc.
Hope this makes sense and but any advice from someone more experienced in these matters would be much appreciated.
I'm negotating with a letting agent for the lease of a property we've identified as being suitable for our new coffee house. The property schedule states the rateable value is £12,000 per annum and this is the annual rent that the landlord is holding out for, although they are willing to offer rent of £7,500 p/a for the first two years before going to £12k in year 3.
After chatting to the local assessors this afternoon I've discovered that the rateable value is actually £11K p/a. The agents are a reputable local firm and I'm certain this is an oversight. More importantly though, I'm thinking that, in the current financial climate, there's no way I should be paying over the rateable value - which I understand to be a pretty accurate indication of what the annual rental figure the property should command.
Am I placing too much importance on the rateable value or should this be seen as a pretty good rule of thumb as to what I should be offering?
The property is in Scotland and the current rateable value was set in April 2010.
As an aside to this, the assessors told me today that there is an appeal pending in relation to rateable value - presumably instigated by the landlords as the property has been vacant since early April. My logic says to me that the landlords have a hard neck asking me to pay £1K over the rateable value whilst at the same time appealing to the assessors that the rateable value is too high!
I've got a solicitor who will go over the fine details of the lease prior to me agreeing to anything but he agreed there's no harm in me negotatiating heads of terms such as rental figures, lease length, etc.
Hope this makes sense and but any advice from someone more experienced in these matters would be much appreciated.
