Posts Tagged ‘Landlords’

Buying a Pub – 5 Essentials You Need To Know Before You Take The Plunge!

buying a pubWith pubs currently shutting at the rate of 52 a week, you would think that now was not a good time to consider buying  a pub but to counter the first statistic, gastro pubs are opening at the rate of 4 a month at the moment. Read the rest of this entry »

Commercial Rental Property

Commercial Rental PropertyIn large cities if a business needs to take space it will invariably be a lease which is available which brings me onto commercial rental property.  It is rare for freeholds to be available at affordable prices.   It is the preserve of investors, wealthy landowners and financial institutions looking for secure rental income.   Most businesses will be looking at commercial rental property.   So what are the disadvantages of rental property as opposed to freehold properties?

Commercial Rental properties are granted for varying terms.  25 year leases used to be the norm.  This was the length of a so-called “institutional lease” ie. A lease which would be suitable as an investment vehicle for a financial institution.  However, the length has been steadily decreasing and the recent credit crunch has given potential tenants the bargaining strength and brought rental terms crashing down.

Most tenants are now looking for no more than a 5 to 10 year commitment and sometimes they want shorter break options within that term.   In strict terms a lease should only be regarded as the length to the earliest break option.  So if a 10 year lease contains a tenant’s break option at year 3, then this should be regarded as a 3 year lease.  The tenant may not exercise his break but you cannot rely on more than 3 years rental income as a landlord.   There is a glut of office premises in most cities especially the secondary properties ie. Not new built offices but existing offices.   Landlords are open to negotiation.

So what terms should a tenant be seeking in the current climate? Read the rest of this entry »

6 things you should know before doing a commercial property let

commercial property let

6 vital things you should know before you do a Commercial Property Let

Letting commercial property should be simple.  You have a premises.  You contact the letting agent. He puts up the letting board and draws up the Letting Particulars and that’s it job done. However, there are many things you need to know before you can carry out your commercial property let in the UK.

1. Energy Performance Certificates

It is a legal requirement that the landlord produces at his expense an energy performance certificate showing the energy efficiency of the building that is being let.  Commercial EPC’s are much more expensive than residential.  Whereas a residential EPC might cost £45, a commercial EPC could be as much as £300 to £400 depending on the size of the property. It is Trading Standards who enforce the regulations relating to EPCs and fines have been levied for landlords who have not obtained an EPC before letting.   Complaints might be lodged by a disgruntled potential tenant who was outbid by another tenant, for example.  So this really is not something you can ignore when undertaking your commercial property let. Read the rest of this entry »

Dominic Beeton, Solicitor
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