A GUIDE TO LEASEHOLD BUSINESS PREMISES
When looking for new premises do not wait until you are at the end of your current lease to look for a new one. You need time to consider new business premises and you do not want to be moving in a panic so take time to find the right leasehold property.
You can either buy an existing lease or enter into a new one.
If you are buying an existing lease this is an assignment. It allows the current tenant to agree to assign the lease to you subject to certain conditions. The landlord will no doubt have to give his consent to enable this to happen. Be aware that if the lease you are buying is granted out of another lease, and not out of the freehold, you are very likely to need the consent of the superior landlord, that is the person who owns the property or the ownership will revert to at the end of any lease. This will no doubt increase costs and cause a delay to the transaction.
The terms of the existing lease might not be right for you or your proposed use of the building and so you may need to enter into a document called a Deed of Variation and this may change some of the lease terms.
If you are entering into a new lease then an Agreement for Lease needs to be prepared.
You will need your Solicitor to investigate the title to the premises and this is the same investigation that would take place if you are buying the premises. It involves looking at the title documents, look at what restrictions and covenants are attached to the land if any, and check the premises have the benefit of all the rights that you need.
Searches will also need to be undertaken, again the same as buying a property, and the nature of those searches depends on the type of premises you are seeking to lease but normally whether or not they are connected to mains drainage and such like.
If you want to use the premises for your business then you need to check that they have permission to be used for that certain business or in the alternative do you need to obtain planning permission for change of use.
An Application for planning permission to be granted can take many weeks and you will not be able to run your business from the premises if you do not have the necessary permission.
There are lots of things to consider when taking on a leasehold property. These outline the main points, but if you wish to discuss any further issues or consider your current lease or moving from your current lease please do not hesitate to contact our commercial department and speak to Bob Willson on 024 76387821.
