negotiate a lease on a commercial premises that is ‘partially’ in the hands of NAMA.

A

Alwyn

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Has anybody had any experience in negotiating a rental property that is in the hands of NAMA via an estate agent?

I am finding the whole process quite taxing to say the least.
 
Hi Brendan,

For the past couple of months I have been trying to negotiate a lease on a commercial premises that is ‘partially’ in the hands of NAMA.

I have been negotiating through an estate agent who has sought an amount of documentation from me i.e. references, contact details for referees, budget, business plan etc.

The original asking price quoted was extensive and would not have been sought in the so called boom, so I negotiated the costs down. The estate agent contacted me and said that the landlord was happy to proceed with the lease but they would have to put it by NAMA. That was some months ago, so I presumed that they were not proceeding with the letting and put it out of my mind.

Low and behold I get a call last week from the EA to say that they would consider my offer!!!!

I said to the agent, you have to be joking, besides not contacting me for months; surely the value of the property has decreased so yet again I set up a meeting to discuss figures. The agent agreed with the figure quoted and ensured me contracts would be with my solicitor within the week.

A couple of days later and my solicitor has heard nothing. I call the EA and I am informed that the landlord is now stalling over my offer.

So who gets to make the final decision on whether the premises are let, is it the EA, Landlord or NAMA?
 
A few owners of property have issued leases at very favourable terms to their friends to frustrate the lenders.

If it's a long-term lease, NAMA presumably wants to ensure that the rent is at fair value.

I came across a case recently where the new tenant asked for a letter from the landlord's bank saying that they approved the letting. I had not come across this before, but apparently it's common these days.

So both have to agree. I presume that the estate agent is just the adviser and will do as he is told.
 
I actually wonder was my offer ever put forward to NAMA?? I'm presuming I cannot contact NAMA to find out has either of my offers been passed onto them?
 
Boomtobust said:
So who gets to make the final decision on whether the premises are let, is it the EA, Landlord or NAMA?
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Well as all we read about Nama is how much the 'experts' are getting paid they have to justify their salaries somehow I guess. But Nama is now like a civil service institution so you have to deal with it not as a commercial proposition but as an obstacle race that will see you tearing your hair out to comply with all the rules of the game to fit their terms and conditions which will change every step of the way.

I'd write my counter offer by registered post to the Estate Agent, cc by registered post to Landlord and Name agent and whoever else you can think of. With a warning that you have been doing this negotiation for months, have complied with every requirment, cannot get answers and that you're going to the media, (Shane Ross, Sunday Independant might be interested) if they don't get their act together.
 
It is a fiasco to say the least, one big game. I know I am a bigger idiot for allowing them string me along like this but I do wonder what's in it for them if they keep me on a string within their loop.
 
I'm surprised you haven't been asked to sign contracts without the insight of a solicitor . . .

My advice is to run a mile. I've been there and believe me it's head wrecking as well as time wasting.
 
Thanks ajapale.

Bronte, I think I will take your advice on board and go to the media about this one.

Kerrigan, an insinuation to leave the legal side out of the equation was made. I closed my ears to that one.
 
"Bronte, I think I will take your advice on board and go to the media about this one."

For why? To expose NAMA? To highlight injustice? To get your name in the paper?

I suggest that you talk to your solicitor first. I expect that their advices will be to walk away and find another property that has simpler logistics. There are obvious complications and legal/financial quagmires in this matter.

I think there are very significant issues for you as a prospective purchaser/tenant - the involvement of NAMA in any multi occupied commercial property situation throws up all kind of "what ifs?"

And there simply is not enough information given here ( and probably better all round) for anyone to give you anything more than a bar stool lawyers stance.

mf
 
mf1 said:
I expect that their advices will be to walk away and find another property that has simpler logistics. mf
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Negotiating a lease where there is Nama involvement is (almost by definition) going to be a difficult, complex and potentially head wrecking excercise. Why not just walk away and negotiate somewhere where a simpler set of circumstances prevails?
 
Last week NAMA said it was making an average of 12 credit decisions per day and that it took an average of six days to deal with a credit request. Now NAMA didn't exactly define a "credit decision" but the common understanding would include a disposal (rent/sale) by the developer.

Last year, and on several occasions, the NAMA chairman Frank Daly invited buyers/renters to contact him personally if they were not getting satisfaction from the receiver/developer.

In the recent case of the letting of Burlington Plaza to BSkyB, it was reported in the Sunday Independent and previously on the NWL blog that a Minister intervened to get NAMA to reverse an earlier decision, apparently to protect up to 800 potential new jobs.

I must say that I get about one complaint per week about receivers/NAMA's responses but when I point out that potential buyers and renters can write to the NAMA chairman directly, that tends to be where the matter ends, which implies that NAMA is reasonably responsive.

Lastly it's not clear what is meant by NAMA "partially" controlling a building but say the building was jointly owned by two developers and only one obtained a loan which has now been absorbed by NAMA, then in that case presumably it wouldn't be just NAMA that would need make a decision but also the developer who didn't have a loan. Would be unusual I would have thought.
 
NAMAwinelake, thank you very much for taking the time to explain the above. I have my heart set on this unit as it is suitable to our needs, the lease is also less than one year.

With regard to "parially" controlling the building - this is a word that was thrown around losely by the estate agent.

Again many thanks for all replies.
 
ajapale said:
Negotiating a lease where there is Nama involvement is (almost by definition) going to be a difficult, complex and potentially head wrecking excercise. Why not just walk away and negotiate somewhere where a simpler set of circumstances prevails?
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Sound advice.

Run a mile OP. I've been there and worn the T-shirt. The developer and the auctioneer are taking you for a mug. Ask yourself :

How long has the propery in question been idle? I bet a very long time.

Also who if anyone is paying the commercial rates if unit is vacant?
 
I don't understand why the property owner has a say in negotiations. Surely that is what is complicating things further. Why doesn't nama simply take offers from the estate agent and take what is the best offer. Or am I looking at this from a simplistic view?
 

In what business capacity do you get complaints? Is one a week not a lot doesn't that mean that Nama is not actually giving responses within 6 days.
 
One complaint a week sounds like one too many to me. And also taking into account that OP seems unaware that a complaint can be made. How many others are in similar situations and have not voiced their concerns.

Also what is wrong with contacting the media?
 
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