Writing a Lease Proposal

scr6

Hi everyone,

Quick question about a lease proposal I'm putting together at the moment for a prospective landlord and would love to hear if anyone has any suggestions or advice.

Theres already numerous offers on the particular unit so there's a lot riding on the lease proposal itself so I'm keen to make it as weighty as possible.

Is there anything in particular you would recommend writing about besides the actual terms of the lease proposal etc. Obviously I'll include the business plan plus proof of funds and architect drawings that I've had made up of proposed cosmetic changes to the unit to make it fit for purpose.

Im meeting with a solicitor friend tonight to go through the terms of the lease proposal itself but is there anything that I should have in there fro your side to protect myself or that would be expected to be in there?

Looking forward to hearing your suggestions!

Cheers

jimmii

Its going to depend on what you are planning on using the unit for. Sounds like you have most of the basics covered though. If there were any specifics the Landlord was looking for the Agent should tell you. If it is that competitive they are most likely to go for whichever company they see as being the most likely to be able to afford the rent over the longest lease period so you should probably focus on showing why that is you. If this is your first or second outlet and you are competing against someone looking to open as part of a chain it might be quite hard to convince them to take a chance on you I ran into that myself a good few times in the past.

In terms of what to look for from a legal point of view definitely best to talk to a solicitor and get them to look through it all.

scr6

jimmii wrote: »

Its going to depend on what you are planning on using the unit for. Sounds like you have most of the basics covered though. If there were any specifics the Landlord was looking for the Agent should tell you. If it is that competitive they are most likely to go for whichever company they see as being the most likely to be able to afford the rent over the longest lease period so you should probably focus on showing why that is you. If this is your first or second outlet and you are competing against someone looking to open as part of a chain it might be quite hard to convince them to take a chance on you I ran into that myself a good few times in the past.

In terms of what to look for from a legal point of view definitely best to talk to a solicitor and get them to look through it all.

Thanks jimmii,

The letting agent said that it will come down to the business plan viability, lease type and covenant strength so going on that I have solid financial projections, character and business references, and proof of start up funds. This is the first outlet so hoping that the amount of work that has gone into the business plan and proposal will go a long way.

Cheers again

jimmii

I think you are going to need to put together a very strong case then. Its good practice to put it together though so worth doing. When we were looking first time round we offered a little more money and an extra year on the lease and they went with someone who had an existing unit which was very annoying! It was one of those angel shops too which made it seem worse! It worked out well for us a few weeks later we found a unit twice the size for the same price and its been perfect!

scr6

I don't know the terms of the lease of the offer thats on the table at the moment but I know the rent they've offered and I'm going in with more but not a huge amount more.

Do you think I could ask the agent for details of the offer so that I can tailor my own offer to it?

I think if we would be on a winning streak if this were to go our way so easily because it ticks all of the boxes but as you say, its a useful exercise.

jimmii

No harm in asking see if they give anything up!