Taking on a new lease- Class E Cafe

[Askim21]

Hi,

We are looking into signing a new lease for a city centre property (the local authority is the landlord), The property is class E use.
The premises is currently a retail shop which we will be turning into a cafe. (we already have a successful food stall within a market but are looking to expand to have our own shop front)

The landlord has requested that we appoint a solicitor to assist with the lease signing which I have looked into, I have been quoted between £1500-£2200 ( I have contacted 3x commercial solicitors so far and the quotes vary between those figures) Is that the going rate?
We have already negotiated the head of terms including a rent free period, break clause etc but understand the importance of having a solicitor so will definitely get one.

My question is- we will need to apply for planning permission regarding adding kitchen ventilation units and also for the signage etc- do you recommend having a town planner consultant to assist with this? Or is it possible to do this ourselves? I have spoken to a local planning consultant who has advised costs (a lot more than I was expecting) but wondering if they are really needed?
I have tried to speak to the local authority planning department to get advice regarding the ventilation but was advised I would need to pay for a pre-application planning meeting.

Finally my question is- as this is very new to us- in what order should we be doing things? I.e do we sign the lease then put in the planning application? The premises is still currently tenanted until next month so haven't been able to get a ventilation expert in to asses the building to advise costs so don't really want to be signing/agreeing a lease until we know the costs for sure.

Thanks in advance for any help

 

[Gyumri]

Finally my question is- as this is very new to us- in what order should we be doing things? I.e do we sign the lease then put in the planning application?

Before you sign the lease you pay a commercial solicitor to advise you on it and while doing that you verify that the premises has the requisite planning consent and that you can obtain planning permission for the extractor ducting.

You cannot do these things yourself even if you are an experienced restaurateur.

When you have resolved these matters to your satisfaction then you sign the lease in accordance with legal advice as to its terms assuming that you are happy to accept them.

 

[Mark T Jones]

I would definitely appoint the solicitor first - if the lease is flawed then everything else is secondary.

Be sure that they are commercial property specialists, and be clear on the scope of the engagement.

Regarding the lease itself, you haven't mentioned dilapidation causes, which can be a big bone of contention.

Where planning is concerned, the neighbouring properties (both commercial and residential) may act as a guide. Are there others with similar set-ups? Are there prestige apartments above etc.

If similar premises have opened in the last couple of years, try to have a chat with them. Also scour the local press for notifications or articles on the topic


Remember - Government departments work to their timescale, not yours, so get all applications (including alcohol if relevant) rolling as quickly as possible.

Finally, you haven't mentioned, but from experience (quite a lot) these things invariably go over time and over budget - sometimes a little, sometimes a lot. Put lots of allowance in your projection.

Oh, and @Paddy @ Hatch may have more to offer

 

[JEREMY HAWKE]

I would definitely appoint the solicitor first - if the lease is flawed then everything else is secondary.

Be sure that they are commercial property specialists, and be clear on the scope of the engagement.

With the OP leasing off the council. Is this still considered a safer bet than a commercial landlord?

 

[WaveJumper]

!, Treat the council as any other landlord
2, You need proper legal advice
3, Why would you sign a lease if you don't know you will get planning

Most of the "larger" landlords will not let you sign a lease until you have had legal advice, certainly known I've worked for

 

[Mark T Jones]

With the OP leasing off the council. Is this still considered a safer bet than a commercial landlord?

Probably more consistent- if the adviser is familiar it should save a bit of time and cost

 

[Paddy @ Hatch]

I would definitely appoint the solicitor first - if the lease is flawed then everything else is secondary.

Be sure that they are commercial property specialists, and be clear on the scope of the engagement.

Regarding the lease itself, you haven't mentioned dilapidation causes, which can be a big bone of contention.

Where planning is concerned, the neighbouring properties (both commercial and residential) may act as a guide. Are there others with similar set-ups? Are there prestige apartments above etc.

If similar premises have opened in the last couple of years, try to have a chat with them. Also scour the local press for notifications or articles on the topic


Remember - Government departments work to their timescale, not yours, so get all applications (including alcohol if relevant) rolling as quickly as possible.

Finally, you haven't mentioned, but from experience (quite a lot) these things invariably go over time and over budget - sometimes a little, sometimes a lot. Put lots of allowance in your projection.

Oh, and @Paddy @ Hatch may have more to offer

This is good advice.

Regarding planning for extraction and signage - the latter is more of a formality and takes weeks not months as long as it is not completely out here, planners are sometimes adverse to neon lighting (lights up at night time) but as Mark says check what others have done.

For the extraction, you will need venting and to make a full application. You'll need an architect for this not a planning consultant. If extraction and venting is key to the running of your business then you need to make your offer and the lease, conditional upon obtaining planning consent. Both you and the landlord can agree to an Agreement For Lease which ties in both parties, whilst you try to obtain planning consent. If you get it, then you have satisfied the condition and you can complete the lease. If you don't then you can walk away. You should put in place long stop dates on this basis so you are not tied in forever.

If you want to book a 1-to-1 I'm happy to run over the whole process with you and let you know what you need to do and when - head on over to www.hatch-retail.space scroll to the bottom and book a call.