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Premises Lease
The lease on our premises expires next March and is due for renewal then.
We were told today that the council are no longer leasing any properties on anything other than a month by month basis. This means that as from next March onwards we either accept a month by month lease arrangement or we move.
Obviously I would prefer the security of a longer lease – the monthly option means we can be told to leave at only one months notice. Should this happen you can imagine the devastating effect this would have on my business and livelihood.
I have been looking to buy commercial premises for some time now but cannot find anything suitable so I am stuck with leasing council property which is ideal for our needs but with the monthly option I would feel much less secure.
I suspect that long term the council is planning to re-develop the site – perhaps selling the estate to a private developer for a lucrative price.
I think councils have a duty to nurture small business but all they seem to be interested in is screwing as much money out of them as they can possibly get away with these days.
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7 Replies
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Phill,
The first thing to check is whether your lease document has a clause giving an automatic right of renewal, although I guess you have already done that.
I may be talking with the benefit of hindsight, but I would make every effort to find your own place, even to the extent of buying a piece of land and building your own. That makes your premises an investment rather than an expense, and will eventually contribute to your pension. On that note, put it into a SIPP, and your countryman Gordon will help you pay for it.
I agree with your views on councils and their motives, although their attentions may be more focussed on start-ups while, with due respect, you could be considered a long established and successful business not in need of special consideration. In the eyes of layabout council employees, who would struggle to run a whelk stall on their own, you certainly are.
Good luck mate.
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Hi Phil, My father in law was told the same by the council. He was not happy like yourself with the idea of a 4 week deadline to get out. He is one for suffering sleepless nights over whether to but another machine, staff problems, etc, etc. So he got in touch with his local MP. Stating the same theory as you are councils not there to help local business in the area? The MP’s answer was "No they are not, I am". He took the case up and the lease for the longer served tenants was extended to a two year lease with the promise of any change to planning ideas, redevelopment and such would have a minimum of a six month deadline after the two years was up. Although in two years he may have to get ready for a move at least it is six months notice and not 4 weeks.
I hope this helps you some, Councils are different and Mp’s are different but a call to your MP is advised. They are there to serve you in theory. I think we all have not believed that in a long time though.
Regards
Steve -
Good advice Steve – Thank you. I think I might well write to my local MP about this.
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Just a quick update:-
I took Steves advice and sent an email off to my local MP. Next day I received a call from his office inviting me to attend his "surgery" on Friday.
Alison and I both attended and where impressed with his enthusiasm and willingness to take this up on our behalf. In his words he was "appalled" and couldn’t believe they were doing this.
We’ll see what happens next
😉
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Phill, have you spoke to any of the other businesses on the estate about this? If they were to get in touch with their MP as well then he would have a far greater case to argue.
I can’t believe that the council could expect any business to operate on a month by month basis. -
quote martin:I can’t believe that the council could expect any business to operate on a month by month basis.
I can Martin. No problem.
Fifteen years ago I wanted to build a new workshop in a village close to here. I applied for planning permission, which was promptly rejected on grounds of potential noise and smells.
I spoke to the parish councillor and she made the effort to come and visit the old premises I was using at the time and saw for herself that cutting vinyl involved neither of those hazards and made representations to the planning department on my behalf.
The planning department then granted my application, but only on a two year trial basis. The idea being that if they received no complaints in that period they would make it permanent.
They were absolutely amazed when I told them to stick it in their ear. They just couldn’t understand why I was not prepared to spend big bucks on a new workshop just to leave myself open to the whim of a council official whether I would be able to use it after two years. They seriously thought I was going to spend £50k (at the time) on a building, and then let them decide whether I could use it or not. Sh!t for brains, or what?
Anyway, to round the tale off, they got their way in the end. I abandonded the project, sold the site and moved on. Eventually it got a couple of houses built on it, which accords with the planning department’s aim of killing the vibrancy and variety of the countryside and just turning it into a dormitory for the towns.
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Phil, I’m so pleased you got a positive response from your MP. Hopefully the outcome will be as good as his enthusiasm in the meeting. Best of luck mate. Keep us informed of the outcome.
Regards
Steve
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