The Retailer Spring_09.05_FA
Q. How easy is it to set up a pop up/concept shop? A. When it comes to documenting a temporary letting, leases are usually short and simple with fewer obligations. If the rents are low and the term short, then stamp duty land tax and registration at the land registry are generally not relevant. Given the nature of the letting, property searches and extensive due diligence can usually be avoided. This means a less expensive conveyancing process as well as low set up costs. Q. What are the key issues when setting up a pop up/concept shop? A. The term of this type of letting is typically between 3 and 6 months. However, anything up to 24 months would still be considered a short-term let. If the ‘longer term’ is agreed, you may also want an option to determine the lease before the end of the fixed term. It may be worth trying to negotiate a ‘turnover rent’. This is where the rent is based on the success of the shop. If the business prospers and turnover is good, you pay a higher rent than if it is less successful. Service charge caps or fixed rents inclusive of service charge are also well worth pushing for, as are limits to the usual repairing obligations to hand back the premises in the same condition as they were in when taken.
STEPHANIE KIERANS // sherrards.com // Stephanie.Kierans@sherrards.com // +44 (0) 1727 738923
the retailer | spring 2019 | 17
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