The Business Exchange Swindon & Wiltshire Edition 21: Oct/Nov 2015 - Page 23
NEGOTIATING A NEW LEASE
Having identified the right property for your business, you’d be forgiven
for thinking the hard work is over when in fact, it has only just begun. This
is the point at which the real fun starts as landlord and tenant try to agree
terms – or at least find a compromise which is palatable to both of them.
Greg’s tips for Lease Negotiation
• Heads of terms are produced by the agent. It’s important • It is worth trying to negotiate a rent free period
Greg Callard, solicitor,
Greg Callard, a solicitor in the
commercial property team at
Withy King in Swindon, says it’s
important not to be too quick
to make verbal agreements,
avoiding renegotiations and
potential conflicts further down
Greg provides pointers to
prospective tenants who are
about to start negotiating
that these terms are fully negotiated before the
landlord’s solicitor starts drawing up the legal
documents, to avoid problems later on.
• Give careful thought to the length of the lease. Too long
and you may have to try and negotiate yourself out of the
lease or sub-let the property if you need to move earlier.
Too short and there is no guarantee that the landlord will
renew which means you may have to move sooner than
you would like.
• A break clause will allow you to bring the lease to an
end early, should you need to relocate, upsize or
• As well as the headline rent, other costs are often referred
to and included as rent in the lease, such as service
charges, insurance and utility costs. Check if the landlord
charges VAT as this may affect your cash flow.
particularly if you are fitting out the property and don’t
want to pay rent until you actually move in.
• The landlord will want to be able to review the rent.
Consider the frequency of these reviews so you can plan
• Most leases are fully repairing. This may oblige the tenant
to hand the property back in a better condition than when
they took it over. Try to limit your repairing obligation to
the current condition of the property.
• If you need to undertake fit out works, make sure that
full plans and specifications are available so the landlord
can agree them during the negotiation process, avoiding
potential delays later on.
To find out more about negotiating your lease or for any
other property-related enquiry, please contact Greg Callard
or another member of the team on 01793 847777 or
If you are starting to climb the ladder
or are a few rungs up and wanting to grow
your property portfolio.
Contact Martin & Co today
to book your free, honest,
no obligation appraisal.
Whether you are on the top or bottom
step, Martin & Co can help maximise
your investment opportunity.
Martin & Co Swindon
108 Commercial Road, Swindon, Wiltshire SN1 5PL
THE BUSINESS EXCHANGE 2015