Land rental to an established business.

[theboytheboy]

Just looking for suggestions on what to charge.......

I will involve land agent and solicitors if it progresses.

A fencing supplies company with 10 branches/depots mostly in the South East has a branch that backs onto one of our fields. They have recently been acquired by another similar company with 17 branches.

The manager of this branch has approached me twice (so reasonably keen) wanting to rent land to expand their yard.

They would deal with planning application, fencing and making the area suitable for forklifts and materials storage (probably concrete roadways and aggregate for the storage areas)

They would ideally like the length of any agreement to mirror the one they have with the existing landlord (25 years i believe)

Any suggestions based on 1 acre of ground?

 

[Steevo]

I’m currently doing a deal on something very similar, albeit it’s hardcore area not field.

I would never let for that length of term though.

 

[puppet]

Concrete and roads sound permanent. If you can spare it for 25 years then you don't need it so get a big cheque now and sell it.

 

[theboytheboy]

I'm guessing we

I’m currently doing a deal on something very similar, albeit it’s hardcore area not field.

I would never let for that length of term though.

I would expect there would be break clauses in there

 

[Doing it for the kids]

Do you want the rent or a cash sum?

hardstanding around here could be worth £1 Psf £1.50 if concrete.

if long term is your game offer to do the work and charge them full rent. Anything over 7 yrs and it goes on land registry.

stamp duty on an acre of concrete around here to let for 25 yrs would be eye watering but they pay it

 

[theboytheboy]

Current feeling is the regular cashflow would be better, nothing stopping selling it to them at a later date.

As they don't own the premises i dont see why they would want to buy any land that would then be landlocked if they stopped renting the existing premises

 

[Doing it for the kids]

Current feeling is the regular cashflow would be better, nothing stopping selling it to them at a later date.

As they don't own the premises i dont see why they would want to buy any land that would then be landlocked if they stopped renting the existing premises

id speak to the land lord then, if you do a deal with tenant be sure there is a few years on the contract left!

not sure what your rental and build costs are but up here, you would be nicely surprised how quickly a concrete pad pays for itself, albeit a monster cheque to start off

 

[Exfarmer]

Make sure any lease cannot be sold on, if they break the deal, go bust whatever, the property reverts to yourselves.
You could find yourselves with a completely different set of neighbours in a couple of years other wise

 

[Steevo]

Make sure any lease cannot be sold on, if they break the deal, go bust whatever, the property reverts to yourselves.
You could find yourselves with a completely different set of neighbours in a couple of years other wise

Or just ensure that the lease cannot be assigned without your consent/approval.

 

[theboytheboy]

I’m currently doing a deal on something very similar, albeit it’s hardcore area not field.

I would never let for that length of term though.

Did your deal progress? What sort of figure did you come to? Pm me if you prefer

 

[theboytheboy]

id speak to the land lord then, if you do a deal with tenant be sure there is a few years on the contract left!

not sure what your rental and build costs are but up here, you would be nicely surprised how quickly a concrete pad pays for itself, albeit a monster cheque to start off

I've got a copy of the lease from land registry so know the details and its got a while to run