SECTOR FOCUS: PROPERTY
to further ascertain likely wants of property expenditure. For let property, a notional dilapidations assessment could even be undertaken, once the details of the lease have been drafted, but prior to completion. Those businesses proposing to occupy premises as
There are cost liabilities involved with commercial property leases
Small business owners are often
‘Businesses proposing to
ill-advised or don’t seek professional advice when buying or renting commercial property and, as a result, they are often not aware of the associated costs, such as for repairs. Failure to budget for such expenditure can have a significant impact on the viability of the future business. However, what many business owners do not always
appreciate is that there are a number of ways in which they can plan for, project and even act to reduce associated costs. Business rates, for example, are operating costs for
the business and are calculated as an estimate. If the rate is too high, a company can appeal and question whether it is a correct or incorrect figure. With regards repairs, life cycle costs can be forecast prior to committing to a property interest, allowing a business
occupy premises as tenants are
often faced with a multitude of unknown cost liabilities’
tenants are often faced with a multitude of unknown cost liabilities, due to the onerous nature of commercial property leases. In order to ensure the best possible terms are achieved, it is imperative that professional advice is taken. In addition, professional advice should be sought when required throughout the duration of the occupation. It is far too often the case that when a business is faced with a rent review, they will often agree to the proposed figure, without consulting a surveyor who could advise them whether the proposal is reasonable and in line with prevailing market conditions. We also see this where
dilapidations are concerned at the end of a lease - parties often do not consider the actual liabilities as set out in the lease or the implications or
relevance of legal precedent or statute. The cost benefits and/or savings
achieved will greatly outweigh any professional
services costs incurred and potentially onerous lease clauses can be negotiated prior to instructing solicitors.
ABOUT BRUTON KNOWLES Bruton Knowles provides professional advice and all aligned technical due diligence with a comprehensive appreciation for and understanding of the market, all associated legislation and means of mitigating avoidable liabilities.
January/February 2017 Chamber Profile 29
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