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Commercial Acquisition & Relocation Agent

Commercial Acquisitions - Option Three

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JAMES will use their detailed market knowledge, understanding of leases as well as statute and case law to ensure you get the best lease terms.

Our Lease Renewal Option has 5 stages:

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  • Getting to know you

    1

    We will meet you at your premises at a time to suit you. We complete a detailed property profile establishing your goals and objectives, your financial position, budgets and time frames. We examine your current lease to determine when it comes to an end, whether you enjoy security of tenure afforded under the Landlord and Tenant Act 1954 (this is vital since if your lease is not protected you will have no rights to remain in occupation at the end of your lease) and  what notices you need to give. We establish whether you simply wish to negotiate a new lease on your existing premises or whether you also wish to simultaneously explore alternative buildings available in the open market. This is imperative where your existing premises are not protected by the 1954 Act as your landlord can simply refuse to grant you a new lease at the eleventh hour leaving you high and dry with no building to operate your business from.

    At this stage we can recommend solicitors and other key professional consultants that maybe required enabling you to make contact at an early stage and obtain fee quotations. This stage is entirely free and without any obligation. If you like what you see and we think you will then we ask you to sign our terms of engagement. Our fees which are totally transparent are discussed and agreed at the outset.

    We recommend that tenants take legal and agent advice well in advance i.e. 12 to 18 months before the lease end date or tenant break date.

    Fact Finding

    2

    We make a detailed inspection of your existing premises and working closely with your solicitor  forensically reviewing your existing lease and other associated legal documentation such as Deeds of Variation or Licences to Alter.

    We search the market for alternative available properties (unless the lease is protected and the client is adamant that they wish to remain in occupation) and collect evidence to support the terms of the new lease.

    Negotiation

    3

    Negotiating a deal is what we do best. We have over 30 years experience and we use this to ensure you get you the best deal.
    Before we take any action we provide the client with a detailed report containing our recommendations, noting any areas of concern and any further investigations that may be required. Working with the client we prepare an agreed strategy. We then open negotiations. Depending on the circumstances formal notice under the law may be required either to instigate the renewal proceedings or in response to the landlords formal notice. Often, however, negotiations will take place without serving formal notice with the formal legal procedures in the background in the event that negotiations break down. Of course if the lease is not protected the lease can only be renewed with the agreement of the landlord who may not oblige.

    Providing negotiation go well Heads of Terms are agreed and a new draft lease is presented by the landlords solicitor. This needs to be reviewed carefully because the landlord may try and introduce additional onerous clauses that will need to be resisted. This is also an opportunity  to amend or introduce additional clauses to protect your position. It may be possible depending on your relationship with your landlord and market conditions for us to negotiate some additional favourable terms including a reduction of rent or service charge, a rent-free period or a break clause.

  • Negotiations break down

    4

    We always try to agree new leases by negotiation but this is not always possible. The landlord may be asking for terms that we cannot recommend that you accept. Where your existing lease is protected under the 1954 Act we will work with your solicitor to advise on the options available for the resolution of the dispute including litigation and ultimately a court hearing or the more cost effective PACT (Professional Arbitration of Court Terms), process.

    Where negotiations break down and the lease is not protected the tenant must be particularly careful. Unlike a protected lease the landlord can ask whatever terms he likes even if these seem unreasonable to the tenant. Here lies the problem. The common trap is for tenants to start renewal negotiations too close to the lease expiry date. Landlords will take advantage of the rental level and other terms as the tenant becomes increasingly anxious to settle to avoid the costs of moving and the disruption to their business. Also, although you might think you have agreed terms with your landlord these will need to be legally documented by your solicitor or you face the danger that your landlord simply changes his mind and you find yourselves literally on the street.

    New Premises

    5

    Looking at alternative premises should always form part of any lease renewal if for no other purpose than to confirm that your existing premises are the best option. If the decision is taken to relocate rather than renew your lease we can organise the complete move. Please see Option 1 under our Heading ‘Services’ for full details.

    JAMES offers a lease renewal service where we are instructed to acquire new premises and as a standalone service to tenants who wish to stay in their existing premises and need to negotiate a new lease.