Is it possible to purchase a Commercial property with a long settlement and then re-lease to a third party a couple of months prior to actual settlement?
I know that this is possible as “Occupational rent” on Residential property, but for Commercial property, who would the lease contract be with for those two months and who pays who? What are the risks and what needs to be in the sale and lease contracts?
Anything is possible if it is agreed to by the vendor and the purchaser. This is a question for your solicitor as to including the right terms in the purchase agreement. If I was the vendor, I would be requesting the rent until settlement. It comes down to how well you negotiate.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
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Comments made are of a general nature and should not be construed as individual advice.
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