insuring a lease?

K

kiwijbob

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I'm setting up a new business and my prospective new landlord requires security before we sign a lease. I understand he's looking for 5 yrs rent security, now I've already got all my security spoken for as I'm opening a new business so the only option I have is to insure the risk so as if I fall flat on my face the landlord can sleep easy. Where do I start to look for a broker that could help me with this as I need someone who deals with this sort of thing and can help me get as cheap a premium as possible.

thanks in advance:)
 
Very unusual for a landlord to look for 5 years rent security IMHO. I would get some professional advice on this. Normally a landlord would look for character references, company references & the 5 years rent is an extreme occurance! Have you tried to negotiate the terms of your lease?
 
hi,

Thanks for responding. Yes I did think it was very unusual, but it's my first lease and thus a steep learning curve. I plan on contatcing a professional advisor when the landlords estate agent contacts me with the exact details of what security is required. I'm just trying to cover all bases right now.
 
Have you thought about asking another estate agent to renegotiate the terms of your lease if it's a large one? In certain cases this could result in you saving money even after you pay the estate agent an acquisition fee.
Otherwise, many estate agents or the IAVI should (technically) be happy to give you a bit of advice on the standard terms of a lease.
Best of luck with it all, a big undertaking to take on your first commercial lease! Remember most commercial leases are on a FRI basis - full repairing and insuring. This means you are responsible for everything & the landlord will not provide building insurance. It would do you well to check it out.
HTH
 
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