Negotiating lease. Help wanted.

bms1

Registered User
Messages
55
Wondering if i could get some advice was recently made redundant and am planning to open a fast food outlet have picked out the premises and have got the planning permission needed. Have started negotiations with the landlord 15 psf + VAT, landlord has agreed to leave unit ready for renting ie. slabbed ,skimmed,suspended ceilings etc. He refuses to listen to any offers on the rent and refuses any sort of grace period from when i start trading.I have offered a 10 yr lease with a break in years 1 and 5 with no rent increase in the first five yrs which he has also refused + now wants deposit if giving a breakclause. This unit is on the outskirts of a fairly average town with a small college nearby ie. 1000+ students . There are six other units there and a large supermarket in the complex only supermarket is occupied with a service based office upstairs employing about 100 people. Any help would be greatly ppreciated as have been told rent is high but can live with it as small sq ft but his lack of willingless to compromise makes me think is it worth dealing with this landlord. Unit has potential but am thinking may end up working for landlord. Sorry for such a long post.
 
Sometimes in situations like this your gut feeling can be great. It seems you already feel that there will be hassle with him further down the line.
Does he know what business you're going to set up?
It appears also that you are set on this unit/location. Is there anything comparable near by?
If you feel that you are having issues with the LL before you even get started I'd walk away.
 
Feeling that way myself if he won't negotiate at this early stage what hope have i further down the road. He knows what the business is. Unfortunately it is really the only unit that suits.
 
In the current economic environment, landlords should be your most flexible friend, they should be accommodating, easy to approach, supportive and so on. Landlords at the moment have so few opportunities to get tenants that they can't risk putting anyone off.
I'd guess that in some areas, tenants could name their price and landlords would agree, anything to get income and properties occupied.
If you feel that you could end up working to pay the rent, then walk away immediately. There is no point to that as you'd miss any future opportunities and they arise all the time!
As a side question; will the lease agreement be in your name or will you be operating as a limited company?
 
Lease will be in my own name. Definitley won't be working to pay rent if he doesn't start to negotiate he can keep the unit. As you say there will be future opportunities.
 
Having the lease in your own name has some fairly significant risks, worth discussing the implications of this with your solicitor/accountant.
 
Taking on a lease is a serious commitment - you are signing a legally binding document, it's not unlike taking on a mortgage - walking away from it isn't really an option. If you think this isn't the right property/landlord then follow your instinct - walk away, you have a lot more to lose by signing up to a landlord you already feel negatively about, those feelings will only get worse & it isn't worth the hassle.