Screwed Over by Network Rail new lease

[Kwayzee Wabbitt]

Recently in the news there were stories about Network Rail Selling off all off some of their properties. Well...

Things have also gone a bit further it would seem. Personally i thought that it was only effecting the Arches in London but it has now come to my door also. We are based in Wiltshire.

I rent a small unit as a biPartite lease with Network rail and GWR (First Greater Western Ltd) and have had no problems in the last 6 years with lease renewals or rents etc.

On the 16th Jan this year (Lease expires on 31st March) I received heads of Terms and nearly fell off my chair.

AmeyTPT are the new managing agents and has decided to do the following :-

1. Rent increase of 20%
2. 3 Months deposit required up front (not had to pay in the past)
3. Change of lease to a fully repairing lease both contents and building (never had to repair building before)
4. I have to pay their insurance costs £451+vat (not done before)
   
5. I have to pay their legal costs £841+vat (not done before)

All in all I working it out that for a 1 year lease I would have to pay an extra £3900pa
By previous rent was 5K by the way so not particularly large.

The thing that worries me is the "fully repairing" bit - The actual fabric of the building is not good -it has old metal Crital windows with wooden frames that are almost rotten (we had to replace the front door as that was made of wood and had rotted, but they reimbursed us for that) I don't want a bill for say 30K when we leave because of the state of the building, and they haven't given us much time to make an informed decision.

 

[Awinner2]

Time to look for new premises. I would never agree to a full repairing contract on a railway arch. Too much to go wrong. There will be massive changes for all railway arch tenants with the selloff by Network Rail across the country and I have seen news reports with many tenants very nervous about what may be coming for them.

 

[Kwayzee Wabbitt]

We are not a railway arch - we are a stand alone building about 300 yards from a rail station, problem is that the building, as with most of Network Rails infrastructure is really old -I am just getting clarification as to the terms of the clause for "repairing" as in MHO repairing does not mean upgrading or improving just fixing whats been damaged or gone wrong.

 

[Gordon - Commercial Finance]

Get new premises.

 

[Chris Ashdown]

You will find there is no room to compromise as they just work with set demands and not negotiable, Full and repairing on a old building would leave you wide open to large payments at end of lease and a full survey cost before and after just to fight them

Agree with the rest its time to move on and look at the long term rather year to year existence

 

[parkingandsecurity]

Almost all NR property is contract outside security of tenure legislation too. You dont have a leg to stand on i would suspect BUT before you run speak to Amey and see what they say on the matter?

 

[Kwayzee Wabbitt]

Almost all NR property is contract outside security of tenure legislation too. You dont have a leg to stand on i would suspect BUT before you run speak to Amey and see what they say on the matter?

Hi,

I did speak to Amey and thay basically said "take it or leave it" apparently Network rail have been "uncommercial with their rents" and they are "trying to get better value for money for the tax payer".

This is all well and good, but this property was empty for quite a number of years before we took it on and would be after we leave as it is out of town, and also only around 800sqf and a very old building.

I have renewed for 1 year and will then re-assess my options.

Thanks for the advice.

 

[Mr D]

Hi,

I did speak to Amey and thay basically said "take it or leave it" apparently Network rail have been "uncommercial with their rents" and they are "trying to get better value for money for the tax payer".

This is all well and good, but this property was empty for quite a number of years before we took it on and would be after we leave as it is out of town, and also only around 800sqf and a very old building.

I have renewed for 1 year and will then re-assess my options.

Thanks for the advice.

If they would not be able to rent it out again very easily then presumably there will be multiple properties with similar size available cheaper in better locations.
That however would be their problem not yours.