A Guide to Business Leasehold - By: Tim Bishop

When those who work from home decide to acquire their own business property it is commonplace that a leasehold arrangement is found to be the most suitable.

Maybe you want to extend the lease of the business you already run or want to buy an existing lease? Ok, when you buy an existing one, check how many years it still has to run and if you can extend the lease. Consider what is to happen when the lease expires. The landlord may not want to extend the lease or he may demand a rent greater than you can afford.

Let's touch on the basics of this property lease extension for businesses.

To begin with you should take a look at how much rent you are paying. Under most leases, rent is liable for review every three/five years. It is crucial to establish when it was reviewed last. Find out if you are able to extend the lease in the future.

Find out what your responsibility to repair is under the lease. If you are moving into premises that form part of a larger building beware of the service charges you'll have to pay towards the cost of maintaining the building. Just make sure you don't become liable to pay towards major repairs you won't get the benefit from. And keep bearing in mind lease extension.

What if I buy a hairdresser's that is closing down but want to open a shoe shop? Then you will need the landlord's permission. Be careful with the use clause in your lease as sometimes they are quite restrictive. That would be the case of a lease stating the property can only be used for the sale of paint. That would mean you can only sell the premises to someone who wants to sell paint.

Do all of these make you think it could be a good idea to have a survey? Yes. Your survey should let you know what you are letting yourself in for. A Surveyor can also offer you two other important pieces of advise, they can tell you if the asking rent is reasonable and can provide information about a lease extension.

Also, just before you move, make sure water, electricity, etc. are in working order. Check if you can park a delivery van outside the premises. How would people escape from your premises in the event of an emergency? Although there might be a fire escape in place, find out if you need permission to use it.

The golden tip: look through your lease and make sure you understand it. Get the low down on lease extension.Then to avoid any unanticipated problems getting the backing of a specialist property solicitor.

About the Author

Tim Bishop is senior partner at Bonallack & Bishop, a firm of Lease Extension Solicitors specialising in advice on extending a lease. He is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 12 years and has plans for its continued development.

Article Directory Source: http://www.articlerich.com/profile/Tim-Bishop/62652

Additional Articles From - Home | Reference & education | Legal