How to negotiate a lease.

[Tony]

I am considering approaching a local family with a not so thriving business to lease out part of their building for a retail outlet. The property is not advertised for lease.
Please somebody tell me how is a lease negotiated.
If you sign a contract for 2/3 years and the idea does well, can they throw you out and take up the same line of buisness themselves.
On the other hand if I sign a lease for say 10 years and it bombs do I end up paying a lease for years for an empty room.

 

[piggy]

On the other hand if I sign a lease for say 10 years and it bombs do I end up paying a lease for years for an empty room

AFAIK yes, unless you can find someone to take over the lease for you.

 

[staple]

lease

There used to be something called a short term business lease. Pretty standard format I believe, solicitors should have these. But conditions by lessee and lessor can be added - or negotiated - by either parties until both are satisfied.
One of these is the length of the lease. If it is a new business, a short term is probably advisable, 6 months, 12 months, 24 months, etc. Certain rights kick in after a certain period of time, sorry I can't be exact, it used to be 2 years nine months. It could be five years now. But yes, if you sign a long lease and your business folds, I believe you are liable to pay the rent for the whole term - or manage to arrange for a new tenant aggreable to the landlord.
Provision for rent increases will probably be included at specified intervals.
Good luck with your negotiations, and your business venture.

 

[Aphrodite]

Try this

Tony

In your shoes I would probably try to make an agreement for a one or two year lease with an option to extend for a further 5 years or 8 years or whatever.

Structured in this way you willl have an option to get out after one or two years if things are not going well and at the same time hae an option to continue if it suits.