difference between 5 year lease and "4 years 9 months"??

Dr Cox's Ego

Is there some kind of legal loophole I should be wary of?

sluice44

Dr Cox's Ego wrote:

Is there some kind of legal loophole I should be wary of?

It's a commercial lease, right?

If you pay rent for 5 years, you can stay forever. 4yr9mth, they can kick you out if they don't like you.

Dr Cox's Ego

Yes commercial, is that loophole something that goes back years? Should I be wary of such a lease?

lomb

Dr Cox's Ego wrote:

Yes commercial, is that loophole something that goes back years? Should I be wary of such a lease?

not really, u should b looking at buying a place of ur own with 3 or 4 years, to relocate to ur own premises. the exception to this is retail, Takeaway,restaurants and certain professions like dentistry/gp etc where a particular location is critical to your business and planning permissions are not readily forthcoming.
with offices, really it doesnt matter where u are. what business is it?

drdre

this type of lease has been here for a while. its that the landlord can kick you out or you can leave after 4years 9 months its good in a way but if you want to do business the best way i think is buy a property if you can.

antoinolachtnai

Buy a property? Only makes sense if you have a lot of spare capital lying around. It's quite likely that you need the capital to develop your business, and tying it up in a building that you could outgrow within a few years is not necessarily a great option.

The problem with short leases in the retail sector is that you may make a big investment in developing the location (particularly in terms of sales and marketing, but also things like fit-out) but you may not be in the premises long enough to recoup the investment.

In reality, this may be the only lease you're able to get, if you're looking for retail and you're just starting out. If you're sure the foot-traffic will be there from day one and that you can get your money back within the timescale, there's no reason not to go for it.

lomb

antoinolachtnai wrote:

Buy a property? Only makes sense if you have a lot of spare capital lying around. It's quite likely that you need the capital to develop your business, and tying it up in a building that you could outgrow within a few years is not necessarily a great option.

The problem with short leases in the retail sector is that you may make a big investment in developing the location (particularly in terms of sales and marketing, but also things like fit-out) but you may not be in the premises long enough to recoup the investment.

In reality, this may be the only lease you're able to get, if you're looking for retail and you're just starting out. If you're sure the foot-traffic will be there from day one and that you can get your money back within the timescale, there's no reason not to go for it.

u could be very unhappy just when ur making money they kick u out, just know it in advance and almost expect it.

Sponge Bob

pub leases are 2 years and 11 months, if you stay longer the landlord has to buy your 'goodwill' off ya

Maximilian

If you can show 5 years occupation you gain statutory rights under the Lanlord & Tenant Act 1980 (amended by 1994 Act), including the right to a 20 year lease.