The investment includes an underletting
to the Post Office for 20 years from 2001 at a peppercorn rent.
LEASES of commercial property usually require the consent of the landlord for certain dealings with the property, such as an assignment of the lease or an underletting
or the carrying out of certain alterations to the property.
What about removing that worrying personal guarantee clause (agreed to innocently when the market was buoyant,) or dealing with the timing of reinstatement of alterations, the terms of future underletting
, and maybe a "deal" over dilapidations?
or licence arrangements allowing tenants to share a property, which in certain circumstances could be occupied for less than the full (and sometimes hopeful) market rent, are other potential tactics that could help struggling businesses focus on generating strong sales.
It would be unusual for underletting
to be entirely prohibited, although there are estates which have been constructed entirely for owner occupation.
The offices are available by assignment of an existing lease or underletting
at a current passing rental of Pounds 119,000 per annum.
Furthermore, the landlord agrees in the lease a timetable within which it must respond to tenant's requests for the landlord's consent, whether this be for an assignment of the lease or an underletting
of the shop or for change of use.