Reference Requirements Information
If you wish to take a property on a leasehold basis, we will need to apply for references for submission to the Landlord of the property.
If the lease is to be taken in your own name, you will need to complete the “Bank Consent Form” and the “Personal Referees” forms.
If you intend to take the lease in the name of a Limited Company, then references will be needed on both the Company and the individual Directors of the Company. You will therefore need to complete the “Bank Consent Form” with the Company’s bank details, and the “Company Information” form. You will also need to complete a “Bank Consent Form” and a “Personal Referees” form for each Director.
Please note that we make a charge to cover our costs in obtaining references, and will require a cheque in the sum of £200.00 + VAT before we can make any application.
Guarantees And Rent Deposits
When taking a lease of commercial property, it is standard practice for the Landlord to require some form of security. The type or amount of such security will vary depending on a number of factors; in particular the trading history and financial strength of the proposed tenant.
Where the tenant is starting a new business, the Landlord will inevitably require a substantial rent deposit (probably a minimum of 6 months rent), or, where the lease is being taken in the name of a Limited Company, a personal guarantee from one or more Directors, backed by personal bank references.
When a lease is taken in the personal names of one or more individuals, the tenant is personally liable to honour the terms of the lease, and the Landlord is therefore more likely to accept a smaller, or occasionally, no rent deposit. The same is true if the proposed tenant is established in business and is able to show strong financial accounts.
Rent deposits can be held for the duration of the lease, or released earlier in the term if certain criteria are met – e.g rental payments are up to date at the first rent review date. Interest on security deposits is usually, but not always, payable to the tenant.
Stamp Duty Land Tax Calculator
The stamp duty land tax calculator provides the amount of liability of stamp duty land tax on lease transactions. Click here to go to the calculator. (nb: opens in new window)