When leasing commercial space, most people are concerned about leasehold costs. However, there are numerous legalities involved when leasing property. Given that you may not have any legal knowledge, you should hire a conveyancer. The extract below details the benefits of seeking conveyancing services as you lease property.
Negotiating The Pricing
The conveyancer's immediate task is to ensure that you get value for your money. Therefore, they will research to establish the leasing costs of similar properties, availability of support businesses, proposed developments in the area, and the daily walk-in to determine if the lease rates are within the market rates. For instance, if you intend to set up a retail store, you would want a mall with a high daily walk-in. Besides, support businesses, such as banks and restaurants, could make it easy for you to conduct business. These factors can significantly affect the leasing costs of the property. Your conveyancer will negotiate the leasehold costs based on this assessment. For instance, if the anchor tenant's lease is about to expire, the conveyancer could ask for a price cut since the anchor tenant's departure could reduce the daily walk-in.
Negotiating The Terms Of Sale
The leasehold contract is a significant aspect of the deal. Typically, the conveyancer will ensure that this agreement protects and favours your business. Below are some of the pointers that the conveyancer will negotiate.
- If you are unsure about your business, you could opt for a shorter but renewable lease.
- The lease should protect your business. Ideally, it should prohibit the landlord from allowing similar enterprises to open up within the premises.
- More often than not, you will be required to part with property maintenance fees. However, this fee should be proportional to the leased square footage. For example, you should pay less for a smaller space.
- The conveyancer will negotiate the terms of terminating the leasehold. For example, if a dispute ensued between the landlord and tenant, they should attempt all methods of dispute resolution before deciding on terminating the lease.
In some cases, you will need financing to fund the leasehold. If this is your case, your conveyancer will help you choose a suitable loan. Typically, they will assess the terms of the loan and negotiate the interest rates. Besides, the conveyancer will ensure the loan does not affect your assets.
When leasing commercial property, a conveyancer will negotiate the price and terms of sale and help with financing.Share