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Legal advice - Residential property with business use

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Old 13 December 2006, 09:39 PM
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tarmac terror
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Default Legal advice - Residential property with business use

I would ideally like some feedback and advice from the legal types on the forum please, my other half and I have decided to sell our houses and shack up together - in the meantime rent a place until we have found a new pile of bricks to buy.

We have found a rental house we like and are about to sign the lease, however we need to be able to run the admin side of a business from there. It requires nothing more than a PC with internet connection. There is no stock to store, there is no business mail to the address and there are no clients to visit the address.

As i like to play the game straight I have informed the letting agent of this and they have amended the contract T's and C's.

I originally agreed with the landlord and agent that I would rent for upto 12 months with the option to extend. To avoid having to stay for the full 12 months I agreed If I vacated the property within the first 6 months I would pay the estate agents fees to source another tennant.

The agent is now telling me that they can only rent the property to me on a 9 month term because of the business use clause, although there is the option to renew the lease after 9 months.

Can anyone explain this to me? I was very happy with the original terms now I'm wishing I had said nothing about running the business from there. why 9 months?

Feel free to post or PM - thanks in advance.
Old 13 December 2006, 09:49 PM
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KiwiGTI
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Why did you even tell them? If it's only a PC connection then invoice the business yourself for the portion of the rent it uses.
Old 13 December 2006, 10:00 PM
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tarmac terror
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As mentioned above - i like to be honest in my dealings. I'm not accusing the agent of being underhand, i'm just curious as to why the contract term can only be for 9 months because a business is ran from the property.
Old 13 December 2006, 11:08 PM
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sti-04!!
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TT - I can only applaud you for being honest ..... but sometimes you just have to tell a white lie & all.

Just tell him you have changed your mind & its all above board now on a retail purchase, the business is now being run from another address.

Problem solved
Old 14 December 2006, 12:43 AM
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Brit_in_Japan
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TT, it sounds like you're almost playing "too straight". I use my mother's address as my Ltd Co. registered address, so running the admin side of business from my current rented property (PC plus internet connection) doesn't even become an issue. Officially my Co. has nothing to do with this address.

Also an Assured Shorthold Tenancy agreement (which is what I presume you have arranged with the lettings agent) is biased in your favour, they cannot get you out within 6 months but you can give them 30 days notice at any time. Why volunteer to pay extra agents fees within 6 months if you don't need to? You are forfeiting your legal rights.
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