As your business grows and develops, you may choose to step away from using flexible office space and look for something more permanent and secure i.e. taking a lease of premises.
Taking on a lease can be a positive and exciting step for a growing business, but it does come with new risks and expenses (other than the lease rent itself).
Amongst others, you may need to factor in costs associated with fit-out works (making the interior space suitable for your occupation e.g. furnishing the space, installing electrical software); maintenance and repair of the premises; service charges (building insurance, shared services, repair and maintenance of common parts of the building); and stamp duty land tax, as well as everyday occupation costs, such as business rates and utilities.
Before you commit, it is important to be clear about what a landlord is offering and how this will fit in with your business strategy. The first stage is to agree “Heads of Terms” with the landlord, summarising your agreement. These are not binding, but they will set the scene for negotiating the lease itself so it is best to ensure they reflect the deal as accurately as possible from the outset.
Our article, Taking on a new lease: The importance of heads of terms, sets out some of the key considerations for tenants taking on a new lease.
We strongly recommend that you take legal advice before entering into a lease or other occupational arrangement. Please get in touch if you need any assistance.