taking over a shop lease

[Steve CM]

Hi,

I'm just buying out a business but have a stumbling block. Its run from a small shop. i wish to take the lease over on the shop. There is currently 18 months left on the other persons lease. It will be straight forward for her to come off the lease and us to go onto a new lease.

For this a solicitor is charging 1800 pound. It sounds massively excessive to me as all the terms etc are the same. its a case of swapping over details.

Any advice?

Thanks

 

[ethical PR]

If you haven't done so already, why not try getting some alternative legal quotes for this piece of work. And no...it's not as simple as swapping names - a commercial solicitor will need to review the terms of the lease and advise you of anything that might present an issue going forward.

 

[Deleted member 138423]

If you haven't done so already, why not try getting some alternative legal quotes for this piece of work. And no...it's not as simple as swapping names - a commercial solicitor will need to review the terms of the lease and advise you of anything that might present an issue going forward.

Yes, this, but you will/should be able to get a far better price than £1800!

 

[Steve CM]

Its their solicitor, they have drawn it up.

It was their words not mine in regards to just swapping over names and dates etc...

I will take legal adivce. As this place was at my finger tips i thought i'd ask

Thanking you!

 

[Displaycentreuk]

The £1800 needs to be paid by the other person as part of their costs of selling the business.

However, it would be extremely unwise for you to take-on the remaining lease without having advice from your own legal expert.

Chris

 

[Steve CM]

I got a steal on the business so I don't mind paying the solicitors cost. I don't want to have my pants pulled down by the solicitors though...why should I?

It's a new lease, not existing.

 

[arcon5]

Their solicitor is acting for THEM, thus will draft the transfer of the lease in a manner that satisfies their client. You need your own solicitor to act in YOUR best interest. It may simply be a name changing exercise, but your solicitor will translate the lease in real terms so you are aware of your obligations & liabilities.

Some common traps:
- rent review clauses coming in to affect AFTER the break date.
- rent review clauses in the LLs interest only and not offering any protection from unreasonable and regular increases.
- signing a full repairing lease making you liable for anything and everything from the structure of the building & the roof to the decoration and F&Fs.
- the lease requiring you to pay the LL a rate for insurance which may in fact be an extortionate figure compared to you getting it yourself.
- your liability for rent and dilapidation if the business goes under - especially important if a sole trader.
- your rights to remain in the property and protection from the LL taking it back in case of late rent or something.

Just some of the many things a solicitor should make you aware off.

 

[Spongebob]

There is no reason why an incoming tenant should have to pay the legal costs of either the landlord or the assignor; it is merely convention that this is the way things are done.

It all boils down to negotiation - how much the vendor wants to sell the business and how much you want to buy it. I suspect in the current climate that you hold all the cards.

Another thought. Why not go direct to the landlord and discuss a new lease?

 

[The Resolver]

Key piece of information to ascertain to begin with is whether the existing Lease excludes the rights of the tenant to renew under Part II of the Landlord and Tenant Act 1954.

If it does not, so the current tenant can renew and if the tenant is a limited company then consider buying the company rather than just the business. I appreciate that may involve a whole load of other issues which you may not wish to take on board as opposed to an asset sale.

You may write to the Legal Ombudsman at http://www.legalombudsman.org.uk/ to check any rules about assessing fees when they are payable other than by the client. I feel sure that the new Outcomes Focused Regulations , which are much looser and more adaptable than previously may put him breach with excessive fees paid by a non-client. In fact raise the point also with ww.sra.org.uk (th e LO is really for complaints against your own solicitor)


Solicitors must not act under a conflict of interest so you should put him on the spot by writing to him (copy his client) to repeat what he said about the simple nature of the work and your horror at the amount to be charged. Say that if he does not reduce considerably you will not be able to go ahead and thus this will be in conflict with the interest of his client.

 

[Rotor]

You are being robbed for sure , I had this happen to me so I contacted the law society and complained , the fee was halved !

 

[Steve CM]

Thanks for all the replies. I have asked the solicitor for a break down of costs. He seems to be delaying in responding funnily enough.

I'll take your comments on board and see where I go...thanks

 

[Rotor]

Thanks for all the replies. I have asked the solicitor for a break down of costs. He seems to be delaying in responding funnily enough.

I'll take your comments on board and see where I go...thanks

I guess his 5 star golfing weekend comes in at £1800 so that`s his fee to you !! now youve gone and ruined it all by asking for a detailed invoice

 

[Steve CM]

I guess his 5 star golfing weekend comes in at £1800 so that`s his fee to you !! now youve gone and ruined it all by asking for a detailed invoice

we think along the same lines

 

[Steve CM]

Thank you for the replies all sorted now...Steve

 

[arcon5]

So what was the outcome?

 

[Steve CM]

I negotiated with the solicitor. I got a reduced rate plus contributions from the building owner. The question I originally asked was 1800 to much...it seems it was