HLS | Granting Tenancies

Granting Tenancies (Commercial)

Commercial tenancies / licences – Granting criteria

We have a number of commercial properties for rent and the criteria for granting tenancies is more bespoke than residential but as a general rule the following applies:

A credit check will apply in all cases (on both tenant, company, individual and or guarantor).

Garages

The first quarters rent will be payable and a deposit equal to a quarters rent will also be payable.

There is normally a fixed term of a quarter and then the licence agreements run quarterly.

Small storage / office space

We have a number of small offices and / or storage units which will be offered on either a licence or lease (the choice being the tenants). A licence would require credit checks and maybe a home owning guarantor. The first quarters rent would be payable in advance and a deposit equal to a quarters rent would be payable too. An admin fee of £55.00 will be payable.

If a licence is chosen, there is normally a fixed term of a quarter and then will run quarterly.

If a lease is chosen, see below.

Larger commercial (rents £150pcm or above)

For the larger commercial units, a lease will be required. The fixed term will vary depending on negotiations but can range from 6 months to 25 years (3 – 5 years is most common). A notice will be served and declaration made that the lease will be excluded from protection under the Landlord and Tenant Act 1954. The rates suggested below may be negotiable depending on circumstances.

If the signatory is a home owner (and shown on Land Registry on-line), normally the following will be acceptable:

First months rent in advance
Equivalent to 1.5 times monthly rent as a deposit
£195.00 admin fee
Signatory will not only sign for company but also as an individual guarantor for lease

If the signatory is not a home owner (and shown on Land Registry on-line) the following will normally be acceptable:

First months rent in advance
Equivalent to 1.5 times months rent as a deposit
£195.00 admin fee
Home owning individual to sign as guarantor or equivalent to 4 x months rent payable as a premium (non returnable) before commencement.