We have a guide for tenants looking to take a lease of new space which we are able to send on request but here are some of the key things you may like to consider:
(a) Repair – what state of repair is the Property in?
A property needs to be fit for purpose and if it isn’t you may find that you won’t be able to run your business from it. It may be necessary to carry out a survey at an early stage as if you are to take a “full repairing lease” then the Landlord will expect you to not only keep the property in full repair but also put it in to full repair at your cost even if it isn’t. It may be possible to limit any repair liability by reference to a photographic “schedule of condition”.
(b) Rent/Costs – what do I need to pay and can I afford it?
On top of rent, service charge and insurance costs, you should also factor in non-domestic rates and any other costs you may need to spend to ensure the property is suitable for your needs (such as fitting out costs). Where a tenant has no or very little trading history a landlord may also require a rent deposit on completion which can be held by a landlord for the duration of the term of the lease. Also bear in mind the rent may be subject to review after a time.
(c) Term – how long are you likely to need the property and do you need flexibility on this?
If acquiring a lease you should consider how long you would like the lease to run for. If you need flexibility you may like to consider whether the Landlord will accept a tenant break right after a set period of time.