Making An Offer – Leasehold Applicants

GUIDANCE FOR LEASEHOLD COMMERCIAL PROPERTY APPLICANTS

Information that will be required

Identity of Tenant

The name in which you wish to take the Lease, as an:

  • Individual / Company / Partnership (Name)
  • Correspondence Address
  • Phone Number

In the case of an existing limited company or new venture, a note of whether director guarantors are being offered (ideally 2) together with their home addresses.

Proposed Use

D1 Use Class (Under the Town and Country Planning (Use Classes) Order 1987 (as amended)

  • Non-Residential Institution/Place of Worship/Education etc

Proposed Rental/Agreement

  • Confirmation of rental offer – the rental offer should be made on an exclusive basis i.e., you will be responsible for the payment of rental, uniform business rates, services etc.
  • In the case of a Lease, the Lease duration, and frequency of rent reviews.
  • The commencement date by you would wish to complete.

Conditions

Are there other special terms or conditions that need to be contained within your offer? i.e.

  • Break Clauses

http://d1space.co.uk/freehold-or-leasehold/leasehold/commercial-lease-break-clauses/

  • Repairing Obligations

Confirmation of your understanding that the Lease may be & generally is on a Full Repairing and Insuring (FRI) basis i.e.

  1. you will be responsible for organising and paying for repairs or the landlord will keep the property in repair and recover a fair proportion of the costs from you.
  2. the landlord will organise the insurance but you will need to repay the insurance premium.

For further information on Full Repairing and Insuring (FRI) Leases, please go to this link:

http://d1space.co.uk/freehold-or-leasehold/leasehold/f-r-i-full-repairing-insuring-leases/

  • Deposit/Premium payments

Is your offer subject to anything?

  • Survey

It is highly recommended that you have a condition survey made on the property when taking a Lease sometimes referred to as a Dilapidations Report – this will more than likely save a lot of time and money in the future, Guidance on dilapidation surveys can be found by following this link:

http://www.rics.org/uk/knowledge/professional-guidance/guidance-notes/dilapidations-6th-edition/

  • Contract
  • Planning permission etc.

Planning permission may need to be sought for certain types of D1 use within the Use Class designation within planning law. This may be related to statutory requirements within Law, such as Fire Regulations or Highways Requirements, these are generally overseen by local councils or related to a Change of Use of a particular property.

Solicitor

  • You will need to know who your solicitor is, with name and address of his/her practice.

References

The identity of referees to whom we can apply in respect of the proposed tenant, tenant company and/or guarantors.

Where a Lease is being created, references need to be taken up, these are generally from your:

  • Bank
  • Accountant
  • Trade Referees

It helps if you can give full names and other contact details in respect of each referee, in order that we may contact them and seek a reference.

Start-Ups

It is appreciated that in some circumstances you may not have some of the information mentioned above and you can therefore try:

  • Existing landlord
  • Former employer
  • Family friend of professional standing

Asset Form (to be issued)

In addition to the references mentioned, we will require an Asset Assessment Form to be completed by the proposed tenant should they be an individual or individuals or if an individual is acting as a guarantor.

Trading Accounts

Ideally the most recent 3 years trading accounts of the proposed business or limited company.

Background

Please supply information of any past trading experience together with confirmation of related expertise/qualifications etc and confirmation of availability and source of funding for the venture.