Toomey Legal Limited provides quality, clear, commercial property legal advice at value-driven rates in a fast, professional and responsive way. Here, Sue gives her advice for landlords to bide by
1. Should you pay a deposit to have the property taken off the market? No! These deposits are rarely returned if you do not go ahead with the lease.
2. Do you pay the Landlord’s costs? If it is a new lease, then no. If it is to get the consent to a transfer of an existing lease then the existing tenant will need to pay the reasonable costs of the landlord. What is reasonable is a broad range. They can be as much as £1,500.
3. Why is Best rent not the best? Because it is more than open market rent. It is based on the possibility that a tenant may pay a premium rent to have that particular property. 4. Why is the repairing obligation important? Good and substantial repair means an “as new” condition. If it is not in that condition at the start of the lease, then you have to bring it up to that condition. A fairer repairing level is one that is the same level of repair as at the start of the lease as evidenced by a schedule of condition. This can be a photographic condition using your phone if it has a good camera.
5. What is an AGA? An Authorised Guarantee Agreement is a guarantee from the out going tenant that the new tenant will pay the rent.
6. Break clauses Should be for the tenant only (not the landlord) and not have a list of conditions attached to their use.
7. Long or short lease? Why do you need a long lease? It can lead to additional stamp duty but unless it is at least eight years long it will not be registerable at the Land Registry.
8. Exclude from the Landlord and Tenant Act 1954? If it is there is no automatic right to renew.
9. Permitted User and planning laws Check the authorised planning use as well as the user clause in the lease. 10. Check the registered title There may be restrictions against your use or you may need the consent of the landlord’s lender to your lease.
