Knowing how to negotiate a restaurant lease is important. We advise both landlords and tenants of commercial properties in relation to all aspects of leases. We can help whether you are renewing a lease, negotiating with a new landlord, or are renting your first restaurant space. Your lease is likely to constitute one of your biggest outgoings. It is essential, therefore, that it doesn’t become a liability if you fail to get the terms and conditions your business needs to operate successfully and thrive. In this article, restaurant lease negotiations, we take a look at the mechanism and process involved to obtain the most favourable terms for your restaurant lease.
Free Initial Telephone Discussion
For a free initial discussion on how we can help you deal with a commercial lease agreement be it the creation of a new one or extension of an existing one, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help you avoid making mistakes, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.
The First Steps
Finding your ideal restaurant unit takes time and therefore, it can be tempting to quickly close the deal by not negotiating the rent and just signing your commercial property lease. However, it is vital that you take the time to negotiate favourable terms in your restaurant lease agreement.
With our experienced team of specialist commercial lease solicitors, we help business owners and directors by guiding them through the negotiation process from the length of the lease, to rent and repairs, helping you to find an agreement that meets both your practical and commercial needs.
Whether you are a landlord or a tenant, it is vital to seek advice from a professional commercial lease solicitor before entering into an agreement. A lease is a legally binding document with specific terms that if not accurately assessed and negotiated, might not necessarily benefit you in the long term and could be damaging for you as a business.
Are Commercial Leases Negotiable?
Yes, commercial leases are negotiable. However, the extent of a tenant’s ability to do this does very much depends on several factors.
It is useful preparation before entering into negotiations to research the local market, understand who the landlord is, have discussions with various property agents, and involve appropriate advisors, such as solicitors and surveyors.
What Should I look for In a Commercial Lease?
When entering into a commercial lease, there are several considerations to make before signing an agreement. We will help you to ensure that all the key issues have been addressed before you sign, and help you understand your position before you enter negotiations. Check whether a rent deposit is required. It is imperative that you understand your repairing obligations to avoid a potentially large dilapidations claim. Also, check whether you are being asked to give a personal guarantee and if so, proceed with extreme caution and seek legal advice.
Amount Payable
Before you sign the lease, you will certainly want to consider how much rent will be payable over your letting period. If you wish to negotiate this with the landlord, it is best to do so as early as possible.
As a tenant, you might be responsible for paying a service charge for the property or building insurance. These are aspects you will want to negotiate with the seller before signing, as you may secure yourself a better deal.
What Can You Negotiate On?
How much you can achieve at the negotiating table depends on certain factors and preparing for the negotiation is key.
Common areas that we can help with include:
- Break clauses
- Guarantees
- Landlord’s legal costs
- Rent-free periods / reduced rent period
- Rent reviews
- Repairing obligations
- Security of Tenure
How Long Do Negotiations Take?
The length of negotiations can vary considerably depending upon the size and complexity of the property.
For both landlords and tenants, knowing how to negotiate a restaurant lease is important to your business. We recommend that you use an experienced professional to help you through the process.
How we can help
We have a proven track-record of dealing with and advising upon restaurant leases. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Commercial Property Solicitors
It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of ensuring you do not agree to anything in a commercial lease that you come to regret.
To speak to our Commercial Property solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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