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can anyone help returnable bonds on business premises?
I am in the process of negotiating a deal on some new premises and need some advice on bonds please.
The landlord wanted me personally to sign the lease but as we are a limited company that isn`t something I`d consider.
He now wants a returnable bond. Now this isn`t a problem but can someone answer me this:-
1. How much bond is usually required? (I have offered £2500 which equates to 2 months rent)
2. When should the bond be returnable?I should say the lease period is 5 years with a break clause at 3 years.
Any help is appreciated here as this is all that is holding the deal up.
Thanks in advance.
Gary
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3 Replies
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Gary, I would really do this through a lawyer, as a signmaker I would not have a clue when it comes to property deals, a few quid spent now could save you a packet later.
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I intend to do the legal through a solicitor but they won`t negotiate the details. I just wondered if there was a norm on returnable bonds that’s all.
The landlord wants £3k and return it after 36 months. I think 36 months is too long.
Cheers anyway
Gary
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Gary, I would say in todays climate, you have the bargaining advantage,
I would not pay a bond, most leases stipulate a return to condition on termination but this can incorporated into the advance payment of rent, so both sides have some protection.
your solicitor or accountant is the one to advise,I iknow its not for them to negotiate, but if they are worth their salt, they should be telling you the alternatives.
Peter
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