Buying a commercial lease

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    Buying a commercial lease

    Hello everybody
    I am new to this forum and hope someone may be able to help me with the purchase on a lease for a public house. It is a current lease with 18yrs left to run and is a full repairing lease and it is this part of the lease that is causing us a major headache!!!!
    We have had an offer accepted for the business goodwill and F+F and are now going therough all the solicitors etc to head towards completion but we have a major issue with the state of the building. The lease was reassigned just 6 months ago from the previuos tenant and the LL and previous tenant had a delapidation survey done which highlighted nothing. The current tenant had a survey done on the building which when we read it highlighted repairs that needed doing. He did not act on these and signed the lease! We now wish to purchase the lease as it offers a fantastic opportunity.
    We have examined the building and have identified a number of repairs to the flat roof and a roof that is now leaking (we checked on a very rainy day!) and we have windows that do not shut and cracked glass. This is made more fun as it is a grade II listed building. We have had an electrician come to have a look at the electics to see if he thought there could be any problems. He has indicated that that there are switches etc that are not working and it may need rewiring. He needs to do a full test.
    My question is if we have the electrics tested and it needs rewiring is the current tenant liable or do we have to accept it as part of the repairs we will have to do through our tenancy. We have gor quoates of the roof work and window repairs and are negotiating with the current tenant as our solicitor has advised us he is liable for them.
    Also there are items within the fixtures and fittings that are not working such as faulty fridges and freezers. Am I right to ask the current tenant to pay for them?
    I realise at this point you are wondering why on earth we want this property but it rerally does offer us a great opportunity.
    Thanks
    PS the LL has no intention of doing another deplapidation survey at present

    #2
    Negotiate with the existing lessee what works you want them to do or pay for as part of the conditions of sale. Back this up with a survey and other professional written opinions as you feel necessary (such as the electrics).

    You negotiated other things, such as the price, goodwill, fixtures and fittings, why the confusion about the property's condition?

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      #3
      condition of the building

      Hi there
      We had suspicions about the condition of the roof but we were told that until it actually went ie leaked we would just have to accept as a risk of taking over the lease. Of course now having looked further into it after the survey report it appeared it is leaking. We are complete beginners at this but are having to learn fast to save ourselves walking into something very costly.
      Just wanted some confirmation that we aren't asking for anything over the top as I feel that the current T has been extremely under prepared when he signed and is now having to pick up the bill of the previous tenant. I know I shouldnt feel for him but its hard not to!
      We have asked if there is an electical certificate on the property but there doesn't seem to be one. If the electrical survey identifies that it needs rewiring can I ask the current T to pay for it?
      I realise this all sounds pretty obvious maybe but I just want it clarifying before I take up the issue any further with the current T.

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        #4
        I'll say it again. Negotiate with the existing lessee what works you want them to do or pay for as part of the conditions of sale. If you think the deal is a bad one, walk away.

        Comment


          #5
          commercial lease

          Hi there
          I promise I will.
          In fact going homw now to put it all together and go from there. If he doesn'e accept them I will walk away.

          Thanks again

          Comment


            #6
            Dilapidations

            This FAQ may be of interest:
            http://www.landlordzone.co.uk/FAQ/in...=50&artlang=en

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