TIP 1

Check that you understand the basis on which the rent can be changed. Can the rent go down as well as up? You should see if the Landlord is prepared to allow upward or downward rent reviews and if not, you should consider asking for a break option exercisable only by the tenant.

TIP 2

Make sure that the interest rate on the difference is no higher than bank base rate.  Try to introduce a provision whereby te Landlord forfeits interest on the difference if he/she does not initiate the rent review process prior to the review date.

TIP 3

Avoid strict time limits in the rent review clause (other than referred to in Tip 2) - those could result in you losing the ability to negotiate.

Taken from The Code for Leasing Business Premises in England and Wales 2007

For further information on rent review, please contact Jeffrey Freed jlf@freedandco.com

TIP 1

Make sure you understand every term and condition in the offer including the total cost until the lease ends and ask the Landlord or the Landlord's representative to confirm in writing that the offer meets the Lease Code for Leasing Business Premises in England and Wales 2007.

TIP 2

Make sure the offer clearly shows the extent of the property, with the boundaries clearly marked on plan and the floor area noted, together with all means of access or areas you must share with other occupiers, any limitation of hours of use, any restrictions in the type of use, any legal or planning limitations or obligations that come with the property.

TIP 3

Make sure the offer sets out clearly who the Landlord is, together with any superior landlords, and assume that any Landlord will sell his interest to someone else and that you will have to deal with the new owner.

TIP 4

Request written responses from the Landlord, where you expect to need to rely on them.  Check that all things which are important to you and your business have been accurately written down in the Heads of Terms and documented in the lease.

TIP 5

Make sure that the Landlord provides you with a Heads of Terms which clearly sets out all of the terms of the proposed lease.  The terms should include details such as the length of the lease, rent review terms, break options, repairing liabilities and all other matters agreed with the Landlord.  If you are not happy with the terms which the Landlord offer you, you should instruct a solicitor to negotiate on your behalf more tenant friendly terms.  You should refer to the model Heads of Terms in the Leasing Code.

TIP 6

Always ask the Landlord whether the lease has 1954 Act protection.  The 1954 Act guarantees security of tenure and the statutory right to renew your lease at the end of the term.  If the 1954 Act is excluded, you will have to vacate the premises at the end of the term.

Taken from The Code for Leasing Business Premises in England and Wales 2007 www.leasingbusinesspremises.co.uk

For further information on negotiations with Landlords, please contact Jeffrey Freed jlf@freedandco.com

TIP 1

It may be helpful to use a checklist so that you can ask the Landlord to be explicit about costs and obligations in the Lease.  The checklist should include:

• the rent
• VAT
• rates
• service charges
• insurance
• utilities
• repairs/dilapidations
• fitting out/alterations

You should ask the Landlord:

• who pays?
• How often? How much?
• What is the occupier's cost each year?
• If this cost is not fixed, what does it depend on?

TIP 2

Keep thinking of the deposit as your money and demand that interest on it is accrued at a fair rate.  Ask the Landlord to make sure that it is held in an account that belongs to you (escrow or stakeholder account) in case the Landlord becomes insolvent.  Thoughout the term of the lease, make sure you obtain statements from the Landlord to confirm that the money is still in the account and that all interest earned has been paid to you or, if required by the lease, has been held on your behalf within the account.  Check that your deposit will be transferred to the new Landlord if the Landlord sells the property to another owner.

TIP 3

Make sure you know when and how you can get your deposit back, such as when you no longer have an interest or have satisfied agreed conditions.

TIP 4

Think of any guarantees as if it WILL be called on the first day of the lease; what would be the personal consequences for you? Can you afford it?

Taken from The Code for Leasing Business Premises in England and Wales 2007 www.leasingbusinesspremises.co.uk

For further information on financial matters, please contact Jeffrey Freed jlf@freedandco.com