1
123dee
Guest
hi
i'm in the process of signing a Long Lease=35yrs.i've been here for 8yrs,
can anyone lend me some advice PLEASE
i'm in the process of signing a Long Lease=35yrs.i've been here for 8yrs,
can anyone lend me some advice PLEASE
i'm in the process of signing a Long Lease=35yrs. i've been here for 8yrs
Brendan Burgess
Founder
- Messages
- 52,175
Re: long-term lease
Talk to a solicitor
My understanding of the law is that once you have been renting for 5 years, you have a right to renew indefinitely. If I am right, you don't need to sign up for 35 years. You should have a right to sign up for a much shorter period e.g. 5 years with a right to renew again at the end of it.
The Irish economy is booming at the moment and rents might well fall if there is a recession. If you have a 35 year lease, it could become a huge liability.
Brendan
Talk to a solicitor
My understanding of the law is that once you have been renting for 5 years, you have a right to renew indefinitely. If I am right, you don't need to sign up for 35 years. You should have a right to sign up for a much shorter period e.g. 5 years with a right to renew again at the end of it.
The Irish economy is booming at the moment and rents might well fall if there is a recession. If you have a 35 year lease, it could become a huge liability.
Brendan
contemporary
Registered User
- Messages
- 494
Re: long-term lease
watch out for the VAT on the long lease, which is sorted via the vat 4a and 4b forms
35 year lease has the potential for problems as above but also the potential for selling on which you wont get with a shorter lease
watch out for the VAT on the long lease, which is sorted via the vat 4a and 4b forms
35 year lease has the potential for problems as above but also the potential for selling on which you wont get with a shorter lease
Re: long-term lease
I'm in a similar position. I'm buying a business with a shop lease in place. Lease has been running for 8 years (5 years then 3 years) with an option to renew in Jan 09. The paper work with the solicitor states the vendor has the right to a 35 year lease. I am advised the lease is "a valuable asset". What value would a 35 year lease have based on a €150 a week rent?
Also, would the 35 years be from next renewal (jan 09) or from initial start of lease 8 years ago?
And finally as the lease is in the name of the business will it continue through the sale or will a new lease deemed to be in place? Or is that irrelevent since the option to a 35year lease is part of the sale?
I'm in a similar position. I'm buying a business with a shop lease in place. Lease has been running for 8 years (5 years then 3 years) with an option to renew in Jan 09. The paper work with the solicitor states the vendor has the right to a 35 year lease. I am advised the lease is "a valuable asset". What value would a 35 year lease have based on a €150 a week rent?
Also, would the 35 years be from next renewal (jan 09) or from initial start of lease 8 years ago?
And finally as the lease is in the name of the business will it continue through the sale or will a new lease deemed to be in place? Or is that irrelevent since the option to a 35year lease is part of the sale?
contemporary
Registered User
- Messages
- 494
Re: long-term lease
hard to say what value the lease has, depends on location, size of premises etc, ARAIK the 35 years would start at renewal, generally when you sell a lease you wont get a reasonable key money after the first rent review.
hard to say what value the lease has, depends on location, size of premises etc, ARAIK the 35 years would start at renewal, generally when you sell a lease you wont get a reasonable key money after the first rent review.
Re: long-term lease
Slightly off-topic (didn't know whether I should start a new thread) I thought mmost standard leases were 4 yrs 11mths due to the rights taht accrue after 5 years. Now I have an estatte agent telling me that 9 yrs is standard. I certainly haven't come across this particular length before. THe EA also says if I want a shorter one, then the rent will be higher. Any views on this?
Slightly off-topic (didn't know whether I should start a new thread) I thought mmost standard leases were 4 yrs 11mths due to the rights taht accrue after 5 years. Now I have an estatte agent telling me that 9 yrs is standard. I certainly haven't come across this particular length before. THe EA also says if I want a shorter one, then the rent will be higher. Any views on this?
Re: long-term lease
What would happen in a case where you leased a shop and the landlord decided he wanted to redevelop the premises?
AND
What would happen in the case where a landlord sells the premises to a new landlord? Would the new landlord take on the previous leases as they were?
What would happen in a case where you leased a shop and the landlord decided he wanted to redevelop the premises?
AND
What would happen in the case where a landlord sells the premises to a new landlord? Would the new landlord take on the previous leases as they were?
Re: long-term lease
Talk to a Solicitor!
Talk to a Solicitor!
Talk to a Solicitor!
I saw a comment from a regular poster on here recently......you will not all the advice you need here, you may get the wrong advice, so this is something that needs professional advice and support!
Go in ready...have all of your questions prepared in advance
Good luck!
Talk to a Solicitor!
Talk to a Solicitor!
Talk to a Solicitor!
I saw a comment from a regular poster on here recently......you will not all the advice you need here, you may get the wrong advice, so this is something that needs professional advice and support!
Go in ready...have all of your questions prepared in advance
Good luck!