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This has been dealt with to some extent in our Leasing page. However, we offer comments below in relation to business leases.

  • It is essential a purchaser satisfies themselves that the premises are fully complaint to enable the business use to be carried out from the same, eg food and hygiene regulations in respect of cafés, restaurants and the like.
  • Are there any significant liabilities, which will accrue on settlement for reinstatement of the premises to the original state?
  • Is the rental a fair market rental for the premises or is it under-rented and it is likely the Landlord will be entitled to increase the rental significantly upon the next rent review date.
  • Can the business afford the rental, which it is obliged to pay pursuant to the lease? Normally there are ratios relating to businesses, which dictate the percentage of turnover, which the rental should constitute.
  • Is there a demolition clause contained in the lease, which entitles the Landlord to terminate the lease if they wish to renovate the premises.

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