Commerical Lease Agreement Extension

[DanGarion]

Has anyone ever had to write a letter to extend their commercial lease property for a business?

My wife and I need to write a letter to the management company and I'm drawing a blank on what is/should/supposed to be included in the letter. The former owner gave us some tips, but I still not sure if I'm covering all the bases or if what I'm writing even makes any sense.

Any help is appreciated.

What we want to do is extend the lease for 2 more years as well as have a option to renew in another two years. We also had a stipulation that included the former owner guaranteeing our lease when we purchased the business from him, we want to remove that clause and his name from the lease. Lastly we want to make sure the lease does not increase more then 3% or more then the current % increase of the CPI whichever is less, if that makes any sense.

Just need some pointers on what to write since my letter isn't making fluid sense to me right now.

Thanks!

[wade moore]

Doesn't this seem like something where it makes sense to spend the $400 on a Real Estate attorney rather than take suggestions from FOFC?

[DanGarion]

Originally Posted by wade moore

Doesn't this seem like something where it makes sense to spend the $400 on a Real Estate attorney rather than take suggestions from FOFC?

If it was supposed to be a legal form, binding letter yes. But this is pretty much an informal letter to make the request. Trust me if this was really serious I wouldn't be asking here, but I figured someone here would have done this in the past and would have some pointers.

I just can't locate the previous letter to work off of.

[digamma]

If you have an option to extend in your lease and you are exercising that right, then (admittedly not having seen the contract) I wouldn't call the letter informal.

You are also asking for amendments to be made to the contract. While not legal advice, I would generally suggest discussing all of these things with the management company and putting it into one amendment to the contract.

Finally, I agree with wade, seeking advice from a real estate attorney is probably a good idea here. Heck, if you're managing a commercial property, it's probably not a bad idea to have a trusted attorney in your rolodex as a general resource.

[RendeR]

This is NOT an informal situation, talk to your lawyer. Anything you put in that letter can be used by the leaser to make a decision whether to extend you or as evidence enough to break the lease and evict you. Be VERY careful with this letter.

[DanGarion]

Originally Posted by digamma

If you have an option to extend in your lease and you are exercising that right, then (admittedly not having seen the contract) I wouldn't call the letter informal.

You are also asking for amendments to be made to the contract. While not legal advice, I would generally suggest discussing all of these things with the management company and putting it into one amendment to the contract.

Finally, I agree with wade, seeking advice from a real estate attorney is probably a good idea here. Heck, if you're managing a commercial property, it's probably not a bad idea to have a trusted attorney in your rolodex as a general resource.

Ok cool, thanks. I agree now that you mention that, that we need to have someone professionally look at it. I appreciate it.