So you need to expand or move, you've been on the road and searched for properties on all the websites and have found your ideal IPIF property. What next?

1) Arrange to view the property internally.
2) Discuss Terms
3) Information Gathering
4) Lease Documentation
5) Issuing Lease Documentation
6) Getting ready for Completion
7) Completion

Here's a straightforward guide to the IPIF leasing process:

1) Arrange to view the property internally.

You might have had a good look from the outside, and be happy with the location but will it definitely suit your business requirements? The eaves height may be too low, you may need to consider costs of additional fit-out or it may simply not have the right feel once you get inside.
•    To arrange a viewing call LetDirect on - 0870 240 5668. Our locally based agents will contact you to arrange a convenient time to view the property.

2) Discuss Terms
So you've decided it's the property for you. Now you need to discuss the length of lease, the rent and other associated costs such as the service charge, Business Rates and insurance.
•    Call Rachel Clifford or Kelly Canterford at LetDirect on 0870 240 5668 for more information.

3) Information Gathering
Due to the new Money Laundering Regulations, and because we don't necessarily know who you are we will ask you for a bit more information.
•    If you are an established business - We'll need copies of the last 3 years audited company accounts so we can check your company's financial status or "covenant".

The general rule for IPIF, and most commercial Landlords is that your post tax profits must equal or exceed for 3 consecutive years the combined total annual rent, rates and service charge OR the net asset value of your company must equal or exceed 5 times the annual rent, rates and service charge for the unit you wish to let.

However a full financial appraisal will be carried out by Legal & General and we will confirm whether additional information is required or if we are able to proceed.

It may be that your accounts do not pass the appraisal and we will request a rent deposit, bank guarantee or Directors Sureties from you as additional security to the letting. This is to protect the Fund if your business fails.
•    If you are a new business - You won't have any accounts or a proven financial track record and we will require a rent deposit, bank guarantee or Directors Sureties from you before we can proceed.
•    Rent Deposit - The rent deposit will be held in an interest bearing account until your audited accounts pass the appraisal during the course of your tenancy, or until the end of your lease. When either of these events occurs you will be given back your deposit, with the interest that has accrued, provided you haven't defaulted on any of the rent payments and you have complied with all other lease terms.
•    Service Charge & Insurance - We will provide you with full details of the likely service charge payment for your unit for the coming year and we'll also need to ask our insurers, AXA, for an insurance quote for your particular use and unit.

4) Lease Documentation
Once terms are agreed we'll put these into a written document (Heads of Terms) so that the Lease can be prepared and issued by our solicitors.
We've put a set of our standard terms under the Heads of Terms section on the homepage. Basically these tend to detail everything from the size of the unit, service charge and insurance estimates and timescales for completing the lease. The template is amended depending on the specific unit and to reflect terms that have been discussed.
We have three standard forms of lease, one of which will be prepared according to the terms agreed.
Do you want to use a solicitor?
On IPIF units where the annual rent is under £35,000 our solicitors will simply send out the final form of lease for you to sign once terms have been agreed.
We will not negotiate the lease terms once the lease document has been issued.
On leases where the annual rent is above £35,000 we will consider minor amendments but these should not be necessary because the standard leases, have been put together to save time and to be tenant friendly, especially when compared to other leases available in the market.
Feel free to telephone us to discuss any queries you may have.
•    Print off and read Standard Lease
•    Security of Tenure - Most of our leases are outside the security of tenure provisions of the Landlord & Tenant Act 1954. This means you will not have automatic rights to renew your lease when it expires. For more information please visit www.commercialleasecodees.co.uk.

5) Issuing Lease Documentation
Terms have been agreed and you are keen to move in to your new unit.
Before our solicitors will send out the lease, you will need to provide us with a cheque for Abortive Legal Costs. What is this for?
•    Abortive Legal Costs - It costs the Fund £500 to instruct our solicitors to review the Heads of terms, prepare the lease and send this out to you. This cheque is required should you decide for any reason to pull out of the transaction once terms have been agreed and we've issued instructions to our solicitors.
•    The cheque isn't cashed - it is held on account by us until the lease completes - then it is returned or destroyed.
The cheque should be made out to IPIF for the sum of £500 and provided either to Rachel Clifford or Kelly Canterford of LetDirect, or the relevant local agent. As soon as this is received we will instruct solicitors.

Send to:
Rachel Clifford / Kelly Canterford
LetDirect c/o King Sturge
30 Warwick Street
London
W1B 5NH

A timescale will have been agreed in the Heads of Terms and both parties should endeavour to stick to this.
IPIF's solicitors can act quickly and we aim to get most leases completed within a month of terms being agreed, or sooner if agreed.

6) Getting ready for Completion
As soon as we instruct our solicitors you will need to ensure that once you receive the lease for signature everything is in place for completion.
•    Rent Payment - Rent is paid quarterly in advance and your bank will explain how to set up a Standing Order mandate.
•    Rent Deposits and other Monies - If you have to provide a rent deposit you will need to ensure you have full cleared funds in your account ready to transfer to our solicitors before completion can occur. Check the full amount is available, including VAT where payable.
•    A Completion Statement showing sums due on completion can be provided in advance, on request.
•    VAT - All of IPIF's estates are VAT Registered and VAT is payable on rent, service charge and insurance.

7) Completion
As soon as we have confirmation that the lease has completed - the keys will be released and you can move in to your new property.
Extras?
•    Licence for Alterations - You may wish to make some alterations to your unit such as additional offices or another roller shutter door. Any alterations to the unit before, or during, your occupation MUST be approved by the Landlord in writing.
If you let us have details of the works you want to do, we'll let you know whether this can be dealt with by a formal Letter Licence, or if the works are extensive by a formal Licence for Alterations.
All Licences are paid for by the tenant and depending on the type we will confirm the cost to you.

Any other questions?
Please ask Rachel Clifford or Kelly Canterford , LetDirect  on 0870 240 5668 or email - rachel.clifford@ipif.co.uk or kelly.canterford@ipif.co.uk

Or write to us at:
LetDirect
c/o King Sturge
30 Warwick Street
London
W1B 5NH