Lease Agreements
Does anybody have any experience of a Lease Agreement which provides security of tenure for a community shop? Is anyone currently in a precarious position regarding lease tenures??
It has emerged that some community shops when setting up were offered land or premises at a peppercorn rate, but once the freehold changed hands, the community shop is put at risk. This seems to be the case for a couple of shops we have been in contact with recently who are located on pub premises - either in converted outbuilding belonging to a pub, or in a portacabin on their car park.
It would be very helpful to know how many community shops are currently affected, and also to hear from shops who have entered into lease agreements which do offer security of tenure to help us to advise other shops.
We would be very interested in a lease agreement that would provide us with security of tenure but very much doubt if our landlord would sign such a lease agreement since presumably it would make his property less valuable if and when he came to sell.
We started our shop under a 5-year agreement with our landlord, the next door pub, and we paid a peppercorn rent. When we negotiated the renewal of our lease for a further 5 years this was done through third parties on both sides and we arrived at a commercial rent acceptable to both parties. The cost to the shop has increased considerably but we feel that, if the rent is at a market level, we are more likely to get it renewed in 2013 and, if the pub is sold, it is more likely that a new owner will be happy to continue to rent to us.
Our lease is in a standard format called "The Law Society Business Lease (Whole of Building) (Registered) 2006"
We believe that the biggest threat to the long-term future of our shop is the loss of our premises through non-renewal of our lease. There might well be alternatives but it would really make our lives difficult if the lease were not to be renewed.
Arthur Grosset
Monks Eleigh Community Shop
We are currently in a period of rent review and have our lease expire in May next year. Does anyone at Plunkett or in the vicinity, have contacts with regard to surveys or commercial valuations. The orginal lease was drawn up without a valuation we are are unsure if we have been paying too much or even too little for our shop?
Thank You,
Kevin
Bathford Village Shop
Our lease came up for renewal before I joined the Committee but what happened was that we contacted a local firm of consultant surveyors who acted on behalf of the shop association while our landlords appointed a local firm of solicitors to act on their behalf. The consultant surveyors were fully conversant with the law concerning retail leases and also undertook the survey. They then negotiated with our landlords solicitors reporting back and asking for approval at various points in the process.
I would suggest that you Google "Consultant Surveyors" in your area and find one that suits your needs.
Good luck,
Arthur Grosset
Secretary, Monks Eleigh Community Shop
We are in the process of leasing a piece of land for our Milland Community Shop..I have to develop a lease agreement between the shop IPS and the trustees of the Village Hall... has anyone done this and do you have an electronic version of the lease agreement which I can use as a starting point??? Plagiarism is a form of flattery!!! Many Thanks Andy Coe
Hello Andy,
We used a lease document we got from a web site "simply docs" - it was a useful starting point and did most of the normal legal bits for use. It is a subscription site (not expensive) and has a great range of docs for all purposes and all take account of English Law. Its worth a look.
Bryan Casbourne
Mortimer Country Stores
Many Thanks Bryan I've also now found a similar site http://www.netlawman.co.uk which has a range of land and building lease proforma documents.. the land lease I needed cost £24..