Want to know what to include in your offer? Here’s how to maximise your chances of getting it accepted and make a great impression on the landlord.

1. Company Name: 

e.g. Hatch LTD

• Add the limited company name the lease will be in. Attach the accounts as per the above (if you have them).

2. Trading Name: 

e.g. Through the Hatch

• Put the name that will go above the shop door

3. Lease Term and Type: 

e.g. 5 years, ‘inside the Act’.

• Put the duration you want to lease the property. 5 years is normally acceptable.
• Inside the act refers to sections 24-28 of the 1954 Landlord and Tenant Act. Essentially if it is ‘inside the act’ then you have the right to renew it come expiry.

4. Break clause: 

e.g. 3^rd year tenant only break clause, on 6 months’ notice only

• A tenant only break clause is one that only the tenant can action. A landlord break clause is only one the landlord can action, and a mutual break clause – either party can action. It gives you flexibility to terminate the lease before the expiry date.
• 6 months’ notice only – means you only need to provide a minimum of 6 months’ notice when actioning your break clause (in writing). And not conditional upon you satisfying other conditions like being up to date with service charge payments.

5. Rent: 

e.g. £25,000 pa payable monthly in advance.

• Specify not only the amount but also frequency. Monthly rather than quarterly helps with cash flow and some landlords accept it.

6. Rent Free: 

e.g. 3 months rent free from completion.

• Most landlords expect to give away a period of rent free whilst the tenant refurbishes the property to meet their needs. The amount depends on market conditions. In other words, availability of shops versus demand. Try for 6 months’ rent free and compromise on 3 months’ rent free.

7. Handover Condition: 

e.g. all previous tenants fixtures and fittings removed and property left in a clean and tidy condition

• An important one that’s often missed. You want to push as many costs onto the landlord as possible. Ideally when you complete on the lease you want to be starting your refurb the same day. So think about what works need to be done in order to allow you to do that. If the shop needs redecorating, then ask the landlord to do it. ‘If you don’t ask, you don’t get’.

8. Timings:

e.g. ASAP but no later than 4^th December 2023.

• It’s important to iron out at the beginning whether your timings are realistic and the landlord can deliver on them. So state what your preferred timings are.

9. Conditions:

e.g. subject to contract, survey, planning permission

• What is your offer conditional upon. It should always be subject to contract. And it is sensible to make it subject to a survey. But from a landlord’s perspective the less conditions the better.

10. Solicitors Details: 

put name, address, email, and phone number.

• It demonstrates that you are well prepared and, in a position to move quickly.

 

Attachments

1. Covering Letter

Make it personal. Your advantage is that you are individual, unique and founder-lead and therefore no further internal/board approval is required, unlike many national brands. So write a covering letter on why you think the property will work for your business and why they should choose you as their tenant. Make it no longer than a page.

2.Landlord Pack

You need one. Why? Because as well as the terms of your offer the landlord considers your suitability as a tenant. Whether your concept is suitable for the location and property. Whether you have a business model able to sustain the rent and other property costs for the duration of the term. There is risk for them too. A landlord pack allows them to review your business. And at the same time is a golden opportunity to impress them with your concept. So, make a smart one that you are proud of. See examples here.

3.Business Accounts

Why? Your limited company is the tenant not you personally. So they need to review how healthy that limited company is. By looking at the accounts they can gauge this.

If you don’t have them do not worry. But you will be asked for a rent deposit instead. So attach proof of funds e.g. a bank statement. 3 months’ rent worth of rent is a normal deposit amount. If you are borrowing to finance the deposit and Fit Out then put details of the banks approval in principal to your loan.

 

 Resources:

• Get Tenant Ready
• The Knack of getting your offer accepted
• Example Landlord pack