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What length of lease is best?

Terri F
Posts: 12
14/06/2009 22:08:30
I have been offered a lease of 21 years on a guest accommodation business. Am I right that a lease over 6 years has to be registered with????? I think that I have read somewhere something about it, I have tried checking on here & various other sites but can't find anything about it. Any info on different leases would be very much appreciated
Many thanks

3 Replies
David Rhodes
Posts: 340
15/06/2009 09:06:15
How do you know that there will still be a market for a B&B in that area in 20 years or indeed whether the whole market for accommodation will not change radically in that time.

Be wary about signing up for more than three to five years. That’s a very long time and business is changing fast. Whatever you do, never ever sign a long-term lease of 10 or even 20 years on premises, no matter what rates are on offer. Big businesses with proven business models and multiple outlets can do this, but small new businesses can’t.

A five year lease should be renewable if you want to continue trading after that time.

Horizon Business Agents www.horizonbusinessagents.co.uk

Terri F
Posts: 12
15/06/2009 19:35:28
Hi David, thank you for the advice. A 7 year renewable lease is now being discussed, as I wasn't happy with a 21 year & it will be within the landlord act etc so that I have the right to renew or sell on with LL approval. is vat, or stamp duty land tax payable on a new lease without a premium? The rent is discounted for the first 3 years as it'd been run down in the last few years by previous leasee. I think that we should have a rent review after that to determine a fair rent landlord has suggested that we decide now & write it into the lease. I know that I need to instruct a solicitor, haven't yet had time to speak to any to get an idea of pricing & what they'll do.
Thanks again for your advice
narendra lodhia
Posts: 1
17/06/2009 23:06:57
i believe that 3 years renewable standard lease is the best.

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