Signing a New Lease

Once you’ve signed a lease, you HAVE to comply with its terms. It doesn’t matter if it is worded unreasonably. Or how much a fairly simple oversight might cost you in the long term.

So the best time to avoid any costly mistakes is before you sign – when the lease is being drafted. A small investment before you sign a lease will give you lasting peace of mind and could save you significant money in the long term.

Engaging KTD Surveying to advise you before and during the drafting of a lease saves all the time, expense and hassle of disputes at a later date, and any clauses that have an impact on rental value can be assessed and addressed at the outset.

Here are a few ways that NOT seeking expert commercial property advice can lead to problems:
 
  1. If you sign a full repairing lease and the property is in a poor state of repair, it becomes YOUR responsibility.  There are ways to mitigate this, such as with a Schedule of Condition, but they all need to be addressed as part of the lease agreement. 

  2. The rent is often agreed on before you see the lease. But actually, there are sometimes restrictive clauses in a lease that should be reflected in the rent with a discount. 

  3. Rents are based on comparable evidence. If a business takes on premises without researching the rent, and pays above market value, this can then be used against ALL the other businesses locally. So when those properties are due a rent review or lease renewal, that uncharacteristically high rent will be used to try to increase their rent. The result? A vicious circle of ever-increasing rents that can be damaging to local economies and especially small businesses and independent shops. 

  4. If you have a break clause with significant conditions attached to it, you may find it difficult to exercise; you may end up stuck with a lease that you thought you could get out of.

On all these aspects, KTD Surveying can provide you with advice that could make all the difference to your business.  We can:
  • Ensure that your repairing liability is minimised
  • Research the rent and make sure that what is agreed is the right amount, based on the appropriate lease terms and the local evidence
  • Negotiate the lease terms, ensuring that you get flexibility as well as stability
  • Advise you on wording for your break clause that would give you the best chance of operating that clause if you need to. 

To find out if KTD surveying can save you money and improve your lease, contact us here