advice re rent/lease

Hi
Im new to all this business stuff and may come across as naive so apologies in advance.

We are looking to set up business in Kildare, We have found an excellent property (to rent/lease) by word of mouth and its not on the market yet. We have been in discussions with the current occupier. He is closing up shop and has 11 years left on his current lease. He has suggested we rent the property off him at E28,000 p/a. In this current climate we feel this is way too much and have suggested E18,000 (to start we can increase to E20,000 but only just).

He has since suggested upfront payment of E30,000 for the rest of the lease and then E18,000 p/a.

Now bearing in mind he is not the landlord, and this has to be all put by the landlord yet.

What should we do? We have no way of approaching the landlord direct unless the lease is put on the open market.

Thanks again

First of all what is the square footage of the property? Is it on the ground floor or first floor?
I would recommend going directly to the landlord as the current tenant would not want to lose his deposit. Also the fact that he is looking for "key money" of €30k is madness in this current climate. I think he is chancing his arm.
Could you not get the landlord details from a neighbouring shop owner?
I would get an idea of what similar type proprties are leasing for in the locality

I think the current occupier needs to have the landlords permission to sublet. Also be careful about handing over a lump sum - if the occupier has bought the lease he is liable to pay the rent even if he sublets to you. Think you should consult a solicitor - leases are a mine field and the law regarding VAT on leases changed last year, so there are lots of things to consider.

Thanks so much for your imput. Its 1,100 Sqft over 2 floors we would be utilising both levels, it also has parking for 8-10 cars which is a necessity for us as we are in the service industry. We do have other options but this has by far the best location. There are no other properties of this nature in the area (believe me we have looked and looked).

also after your advice shopgirl Im on the search for a solicitor.

1. Ask to see the Lease - that will tell you what he is currently paying.
2. Talk to a solicitor and ask them to review the Lease. Anything onerous? Significant?

He cannot assign the Lease without the consent of the Landlord - but that consent cannot be withheld unreasonably.


mf

Ellen1 said:

He has since suggested upfront payment of E30,000 for the rest of the lease and then E18,000 p/a.

Click to expand...

Remember he is shutting up shop, but he is still tie into the lease.

Companies in Dublin will pay you to take leases of them as they cannot afford the rent.