The points below are general comments compiled from experience in dealing with a variety of properties and should not be used by anyone seeking to enter a lease without obtaining specific formal professional advice from their solicitor or surveyor.
1) Not aligning their property strategy with their business strategy.
2) Not employing a solicitor that specialises in commercial property at the start of the lease negotiations.
3) Not employing a specialist chartered surveyor to represent them in finding space, negotiating heads of terms and also advising (in conjunction with the solicitor) on the proposed specific lease clauses.
4) Not having a pre-acquisition survey completed by a building surveyor.
5) Not attempting the inclusion of a schedule of condition.
6) Not adequately planning the space for current and future requirements and employing a specialist in this field.
7) Not fully considering whether the property is readily operationally fit for purpose in terms of utility connections, IT etc.
8) Not completing Licence documentation consenting to fit out on lease signing.
9) Not negotiating landlord repairs / contribution/ rent-free towards works prior to signing lease.
10) Not understanding dilapidations obligations.
11) Unwittingly taking on onerous repairing obligations.
12) Not understanding potential service charge liabilities and attempting to limit them.
13) Not factoring in one or more of the following occupancy costs: Business Rates, Insurance, Service Charge, VAT and Utility costs. Not factoring in an allowance towards professional fees.
14) Not attempting to negotiate a deposit payment instead of providing a personal guarantee.
15) Signing a lease outside s24-28 of 1954 Landlord and Tenant Act and not understanding implications.
16) Not requesting/negotiating break options.
17) Agreeing to conditional break clauses and not understanding the implications.
18) Unwittingly taking on environmental/contamination liability.
19) Signing a lease without understanding the alienation provisions.
20) Not allowing enough time to relocate and not drawing up a planned timetable of events.
21) Underestimating the over-all costs involved.
22) Not considering the “Green-ness” or energy efficiency of a property and future potential implication in terms of cost and impact on business.
23) Agreeing to pay the landlords legal costs!
Posted on
Thu, April 22, 2010
by Jamie McNeil
filed under
- property dilapidations,
- service charge liabilities,
- onerous repairing obligations,
- business rates,
- landlord and tenant,
- 1954 Act,
- negotiating break options,
- energy efficency of property,
- landlords legal costs,
- commercial property strategy,
- space planning,
- schedule of condition,
- licence,
- tenant lease,
- tenant commercial lease,
- tenant mistakes,
- tenant leasing mistakes,
- tenant building surveyor,