Buy option on lease

[n17]

I'm thinking of purchasing a commercial property which a has lease in place. The lease has a purchase option attached to it.

My question is if I purchase the property would the purchase option the Tennent has attached to the lease still be valid, would the tennent be able to exercise it

Thanks in advance

 

[Aaron_C]

Yes the lease goes with the property.

 

[Scott No Mates]

it would depend on the wording of the clause. If the tenants had first right of refusal, have they rejected the purchase?

Do they only have the right after an offer is on the table?

 

[n17]

It's my understanding that if I put an offer in then they could match my if they wished to exercise

 

[Lofty]

You mention that a purchase option is attached. This may be a call option and, if that's the case, it is very different from some loose first right of refusal agreement. Depending on the wording of the option, it may give authority for the option holder the right to register a caveat on the title.

As a myriad of conditions can be included in an option agreement, I suggest it's imperative you have your solicitor go over the the option very closely.

Cheers, Paul

 

[John M]

n17, you really need to look at the way the clauses is worded in the lease. This will answer all your questions.

 

[RPI]

I include a full call option and pre-filled contracts on my leases where the landlord client wants them, around 50 pages for the option alone. You need to check the wording very carefully and then you also need to know whether what they say in there is really the case or is it just bluff and bluster to put people who don't know any better off.
D