i have a flat that I usually let to private individuals on an AST. I have had an enquiry from a company who would like to lease the flat for 10 years (with breaks and reviews) along with some commercial space below. The commercial space is in my SIPP and the flat is owned privately. What’s the best type of leases to do as I can’t combine them into one as technically different owners?
another one . ? we have this on so many posts .
I’ve not seen one before. But then I’m not glued to this forum.
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It’s not technically “another one” Colin as this isn’t your typical rent to rent because of the residential/commercial split.
Basically, for those of us who are glued to the forum, we’ve seen an increase in enquiries from people like you who’ve been approached by companies looking to do lease arrangements with private landlords. Generally, we don’t recommend it because you’re effectively giving someone else carte blanche to do whatever they want with your property and that can end badly if the tenants are terrible (which they often are).
But I have one property in a rent to rent five year lease for asylum seekers via a migrant charity that I’ve known well for over a decade and so trust. So, it can be of benefit to LLs.
However, the fact that you are asking us what the best type of lease is seems to be a red flag to me. It’s the company who should be providing the lease/s for you to take to your solicitor to check over. You should not have to draft the lease agreement at all.
Thanks Tatemono. I aware of the rent to rent situation but this is not that scenario. The is a beauty business who are well established opening a new salon. I know an AST can only be for a principal home so it’s got to be a general tenancy agreement or company let. Was just hoping someone could offer a bit more info on this.
But you’re leasing this, not letting it. Big difference. When the lease I mentioned for my property was drawn up, it was done by specialist solicitors who do this kind of thing all the time. Are you not talking to a specialist solicitor?
You need to get a solicitor to draft you something appropriate.