if you're thinking about starting your own business then there's a couple of
scenarios that can arise and which I come across very frequently. the first
one is where you might be buying the small business through a broker and so it
may be the hairdressers it may be a nail bar it may be a barber shop or something
of that nature and the existing occupant the existing
business owner is selling the business through a broker and it's getting out
and broker maybe offering to transfer or ensure the smooth transfer of the
business from the existing order to you and you may understandably are going to
be trying to cut costs and not get into your legal fees and keep them to a minimum if can and
that's fair enough that's understandable but you must be very aware and very
clued in to the fact that if you're buying for example the hairdressers or nail bar
firstly does the existing business secondly there's a premises and the premises is
gonna be held on some sort of a lease on every lease that has ever been
drafted in order for it to be assignment or transferred from one person to
another requires a landlord's consent so the very fact that the landlord or lease
needs to transfer never mind the business from the existing business all
of you it's gonna require a certain degree of legal formality
the landlord's consent must be obtained you must also try your basic inquiries
about title of the landlord who granted lease or to assign the lease the most
ought to be concerned that there's no existing issues in relation to
commercial rates for example and you're not gonna walk into a haymaker of rates
bill from the local authority you need to be concerned about planning there are
a lot of issues you need to be concerned about so if you're taking over a
business like that it's all very well for a broker or somebody to say we've
got a Tony a Mickey Mouse or small business it's only going to cost 5 grand
10 grand 15 grand 20 grand or whatever while all I need you to be walk on you
slip into a pile of trouble if you don't go to the expense and take the time to
get a solicitor to carry out basic research and the basic inquiries
particularly in relation to the premises because if they're outstanding rent or
if the landlord doesn't consent or if there's any other issue with the lease
you may well end up buying a small business or ending up significant
trouble with the landlord remain even have trouble with the local authority
generation of planning or in relation to outstanding commercial rates so for
scenario that I'd warn you against is situation where a broker or even a third
party are an independent person or so-called independent person says to you
look give me ten or fifteen grand and I can bring about to transfer this
business to you this other person the existing business owners leaving the
country and it's a very straightforward process and you don't need the other
solicitor involved you don't need it on the other hand the professions involved
in that you want serious of somebody be very very very observed second situation
is where you are going to take two premises maybe take a couple of take an
office or perhaps take a retailer or perhaps take there two or three rooms in
a big house that's currently being used as an office or as different businesses
occupying us in that situation you want to be looking at at least heating with
leases the length of the lease now if it's a four year nine month lease the
likelihood is that the landlord thank you does not give you the
entitlement when the lease is expired to immunise now business suit you fine you
may not want to commit for the long term but you need to be aware at the outset
that if the lessor for you tonight ones do not take to a new lease and any money
or any major investment or expenditure AmeriCorps could be wasted you may do
that not knowing that at the end of the term you're not actually legally
attached to a new lease know the landlord can you do a new lease would
you have to wonder at the outset that if you wanted to enter into a long-term
lease why you give you a four year nine or at least in the first instance so be
careful about that as I say it may suit you that you have a short lease and that
you have about a huge obligation or lengthy obligation in terms of time and
sets etc and you may be looking for the premises which is only temporary and
that you're going to get a new premises in four or five years time when you have
built your business up but do we worry do be careful about taking on a short
lease and then making major expenditure because you could be carved out and your
money could be wasted if the lease is over four years and nine months if it's
five years six years ten years then by law you're entitled to a new list if you
want to exercise that option the other thing you need to be careful about is a
thing called a deed of renunciation may be granted release but you may also be
required by the landlord or landlord solicitor to sign up deed renunciation
a deed of renunciation is you basically signing to give up your right to new
lease on the expiry of the term of the existing lease so that will supersede as
if where the Landlord and Tenant I store honey right that you have in other words
you've entered into a deed to give up your right to new lease at the end of
the term again you need to be very very aware and mindful of what you're
actually signing and the legal consequences hours
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