Business premises question:

I’m thinking about taking on a business lease but what will I have to pay out for on top of rent?

posted in Business premises | 2 responses

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Responses:

Good Lawyer Guide's response

Firstly, when you find suitable premises make sure you check the lease carefully because it will set out all the financial commitments under the tenancy. This will not only include the amount of rent, but also when the rent could increase and by how much.

You will usually have to pay towards insuring the property and, if it is part of a large building block, a service charge covering the general maintenance and running costs of the building. Always ask for service charge accounts and forecasts so that you know what your liability could be in the next couple of years.

You will also need to factor in the costs of keeping the property in good repair during your tenancy. It is a good idea to have a survey of the property so you know what your repairing costs could be in the future.

Daniel Stanton

Daniel Stanton's response

You will also need to consider paying for landlord's legal and survey costs if you require consent for any alterations, signage, change of use, planning application or a transfer of the lease to a buyer of your business in the future. These can sometimes run into thousands.
You can manage some of the costs here by ensuring that you have approval in advance before the lease is signed up, when the landlord is perhaps keener to negotiate and pay its own surveyors and lawyers. Bear in mind that a landlord may be less inclined to involve their professionals if they are footing the bill!
Hope this helps.