Shareholders Agreement – Why You Need One
February 27, 2011As the after effects of the recession continue to drag on, landlords and tenants are looking at how they can get the best out of their premises during the current difficult economic conditions.
Tenants: If you are a reliable and solvent tenant looking for premises, you are a sought after commodity by landlords. As such, you may well be in a position to negotiate considerable fitout works at the expense of the landlord, in exchange for an increased lease term, the provision for a renewal of term or an increased annual rent. We can help you to carry out those negotiations and formalise the arrangements between you and your new landlord.
Owner/Occupiers: If you are the owner/occupier of commercial premises you may wish to free up some capital by selling your property on a lease back arrangement. We can guide you through this process so that you continue to be free to focus on what is important to you – your core trading activities.
A good tenant who is struggling to negotiate its way through these tough economic times is a concern for both the landlord and the tenants.
Tenants: If there are signs that you may not be able to meet your rent obligations in the coming months, we suggest that you are upfront with your landlord, so that you can find a workable solution together. There is every possibility that you will be able to ride out the bumpy times together and continue on to have a mutually beneficial relationship with your landlord for years to come.
Landlords: If your tenant is not upfront about its financial position and continues to default on its rent obligations, then you will have to address these concerns promptly and effectively. The Property Law Act 2007 places highly technical and form driven obligations on landlords in these situations, and it is important that you ensure that the correct procedures are followed. We can assist you in this process to ensure that you achieve the best possible result.
If you would like to discuss any of the issues raised in this article, then please contact us for a chat about how we might be able to help you.
