Leasing a Commercial Shop Property

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    Leasing a Commercial Shop Property

    Hi, this is my first post so please excuse if I have posted in the wrong section.

    I am interested in opening up a shop and I have found the ideal shop. I've never rented commercial property before so I don't know what to expect, etc.

    I've got the brochure for the property I required and it states that each party will be responsible for meeting their own legal costs in connection with the granting of a new lease with the ingoing tenant being responsible to pay any Stamp Duty Land Tax and Registration dues. What does this mean?

    Also What does a new Full Repairing and Insuring lease for a period of flexible duration to contain the provision for reviews of rental mean?

    How long does the whole process take?

    Any information would be great.

    Thanks.

    #2
    Stamp duty land tax may be payable on your lease if the total value of rent (rent per annum multiplied by number of years of the lease) is over the SDLT threshold. See

    http://www.landlordzone.co.uk/stamp_duty.htm

    Your lease would also need to be registered at the Land Registry which costs.

    A fully Repairing and Insuring lease means that you will be responsible for paying the insurance (usually you would reimburse the landlord for the insurance he choses)and pay for all upkeep of the interior and structure of the property. This may mean you have to make substantial repairs even if the property is in poor condition when you take it on. Get advice from a surveyor.

    You would do well to read the posts on this forum to inform yourself of some of the pitfalls which many people do not realise until it's too late.

    Once you understand more, you may want to negotiate some of the terms.

    Flexible duration means that there may be some break clauses in the lease for both you and the LL, so it may be possible for either of you to terminate. Or perhaps there is no fixed term at all, but some kind of periodic lease (monthly, annually) with special notice provision.

    Rent reviews; there will be provision for the LL to put up the rent...maybe every 3 years. The lease will say how the rent is to be decided; on a free market basis or maybe linked to inflation. It will also say what happenes if you do not agree with the LL's assessment of the new level of rent.
    All posts in good faith, but do not rely on them

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      #3
      Do not take on a lease without consulting a lawyer.

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