Buying a Business Premises Lease

Leasing a premises is the favoured option of most start-up businesses, the reason being that a premises can be leased for a relatively low cost and a short-term commitment. Local authorities are a good place to look, as they quite often have their own properties to let and in most cases are considered to be good landlords. Shop and supermarket notice boards occasionally display advertisements for private property deals. Business Link, your local Chamber of Commerce and your local Enterprise Agency are all also worthy of investigation in the hunt to find the right base from which to operate.

And finally a search through the local newspapers, Daltons Weekly advertiser and the Yellow Pages will give you of a list of the commercial property agents in and around your area. To search further afield, the Internet is by far the most efficient method. If at all possible try for a new lease, as the premium payable is generally a great deal lower and a rent-free period is negotiable if internal fixtures and fittings are required. Once the lease terms are agreed and signed it is very difficult to make changes, so any negotiating should take place at an early stage. Employing a solicitor is a wise move and if the lease makes you, the tenant, responsible for maintenance and repairs to the property, employ a chartered surveyor to ensure that any work required is paid for by the landlord prior to your agreeing and signing any legally binding document. Your local Business Enterprise Agency will give you advice, as well as a list of chartered surveyors and solicitors. A free leaflet, available from the Department of the Environment, entitled 'Business Leases and Security of Tenure' can assist you in your negotiations.

A change of use of the premises will, under certain circumstances, require planning permission. For example, to change a shop to a cafe or restaurant can be a lengthy and expensive process. If you are considering a catering business, under no circumstances should you commit yourself to any lease agreement until you have acquired a change of use consent from the planning authority.

Legal Checklist

1. Is the lease the property of the vendor?
2. Can the premises be used for the business you are proposing to run?
3. Are there any planning restrictions on the premises? (conservation area, listed building, etc)?
4. What is the length of the lease?
5. Can you sublet all or part of the premises?
6. On what date are the rent reviews, if any?
7. What insurance responsibilities are you being asked to agree?
8. What, if any, are your lease renewal rights?
9. What are the landlord's costs and who will be asked to pay them?

Numbers four to nine inclusive are all negotiable.