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Before you sign anything, there are several steps to take to investigate the premises further. These steps are:

  • ? to estimate costs
  • ? to check structure of property (if it is freehold or a repairing lease)
  • ? to investigate the legal side of things, and
  • ? to look at local authority requirements.

TO ESTIMATE COSTS

There are a few things to investigate before estimating costs. First, do not rely on the measurements given by the estate agent or landlord. Measure the premises yourself. There is a chance that the area is less than said which could mean lower rent for you, if you have been quoted a rent per sq. ft.

Second, it would be a good idea to look at the premises a number of times on different days and at different times of the day. This should allow you to get a better idea of decoration, heating, lighting or noise insulation needed.

Third, make sure you estimate or allow for all the running costs as well s alterations and improvements you would need to make.

It is always worthwhile trying to negotiate a lower rent and, in particular, asking for a rent-free period of three, six or twelve months if there is a lot of vacant property around, as for example in a recession.

TO CHECK STRUCTURE OF PROPERTY

Many leases make the tenant responsible for the repairs and maintenance of the premises. It would be advisable to ask for a survey from a member of the Royal Institution of Chartered Surveyors. You can also use a survey to negotiate that the landlord pays for certain improvements before you take the premises.

TO INVESTIGATE THE LEGAL SIDE OF THINGS

Your solicitor should be asked to undertake a perusal of the lease. The sort of points to look out for are:

? can the premises be used for the type of business you have in mind?

? how long is the lease? Commonly, it is between three and 20 years

? will you have the right to get a new lease when this one runs out?

? are the premises listed? This can restrict the way you adapt and extend them to suit your business needs

? are there rent reviews and when are they?

? can you sublet part or all of the premises?

? who is responsible for the repairs and the insurance?

? is the lease actually owned by the person trying to sell it?

? are the premises likely to be affected by any road or town improvements or alterations?

? who is paying for the landlord’s legal costs? It is general practice for you to pay them, but it is always subject to negotiation. At any rate, agree beforehand that you will only pay a reasonable amount

? is it possible to rent the premises on a weekly agreement, rather than sign a long lease? This gives you flexibility, but you lose security. An informal arrangement like this may be possible at times when there is a glut of vacant property

? does the landlord want you to give a personal guarantee? Your solicitor should spell out to you the implications of doing so and help you to negotiate to try to avoid this.

TO LOOK AT LOCAL AUTHORITY REQUIREMENTS

A simple step you can make for yourself is to call the planning and building control officer to find out what is the current approved use for the premises. If your intended use is the same, you may need to do nothing more. If a change of use is required, your solicitor should be able to help. The planning officer can also advise you, if your premises have listed building status.

Depending on the nature of your business, you may need to consult:

? planning and building control officers

? environmental health officer

? fire officer

? health and safety executive.

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