Renewal of Shop lease

[jennywren]

I'm renewal my shop lease at the end of the month, any hints and tips would be apprenticed, I also want a break clause in this lease. So any help from members this have done this would be very helpful

[GoonerGary]

If you have been there for a decent amount of time and been a good tenant, you could negotiate a break clause which allows you to leave when you want or sell the lease onto another tenant who could continue on. At the same time, not allowing the landlord to terminate and turf you out before the three years. At the end of the day, the landlord doesn't want an empty property for 6 months losing rent so you are usually in a good position to ask for suitable terms.

[jennywren]

I think they said I could have a break clause after 3 years. Not sure if I sell the lease on as in the end I think if they don't pay the rent your responsible and have to pay it. I would like that break clause earlier but the council don't give you them unless its after 3 yrs. Not sure if I'm allowed to haggle about the new rent that they will give me, there is a lot of changes and building going to happen next year and no one really know what's happening and that makes me slightly nervous

[pw66]

You can always haggle. If you can't reach an agreement you can apply to a court to set a new rent. If you sell the lease, you are correct in assuming that the lease will revert to you if the new tenant defaults.

You should really see a solicitor, before you sign anything new.

[jennywren]

We have solicitor but at the end of the day I think it will depend on how well I can present my case. I've seen to many shop get stuck with the lease after signing it over. I would rather just sell the business rather than do that

[mr-gobby]

End of the month will come around quickly but are there other shop owners in your vicinity who might have had renewals, maybe you could ask them what they have done. Are shop rents sought after or not in the area? If it's council owned they might offer you annual renewals if you have been there a while. I suppose you have to weigh up what your personal views for the future direction of your business are

[logobear]

the law has changed, you can now pass the lease on provided the landlord accepts (include 'not unreasonably refused' clause)
I read recently that the average lease is now 7 years, - it was 20 a couple of decade ago.
It is usual that you will have a rent review at the break clause point, - so if you have one at 3 years, your rent might go up then, but if you wait 5 years, you have longer at the initial rent.
Discuss 'dilapidations' - as the condition you leave the property at termination can be costly to re-instate to landlords expectations.
Council round us now do typical 3month rolling contract which is nice & safe, - and the council are not going to try kick you out unless you have been VERY bad! lol

[jennywren]

Thanks logobear, that's quite helpful, I have never missed the rent or any payments, prior to this I rented of the council for 16 years and then moved this shop. I will ask about 3 month rolling that would suit me down to the ground