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can ask a building surveyor to carry out an inspection of the premises and wider common areas where you may be liable for a share of repair costs. If you are moving into larger premises with air-


conditioning be wary about imminent repairs to the system. If these are scheduled it could involve a major piece of work, not only involving the external plant but also above the ceilings throughout the building, including in the areas where you operate. Similarly, if your surveys discover that the landlord has a series of repairs scheduled or a planned maintenance regime that will involve significant expenditure, you may want to seek a service charge cap to limit your exposure. Ewan explained: ”There may be a major refurbishment taking place in two or three years that could double the service charge. By asking for a cap you’re saying that you’re happy to pay some of the increased cost, but not all of it. “Landlords tend to be sensible. If it’s


a new or recently refurbished building it’s unlikely you’ll get a cap but if it’s an older building where work could be required soon, the landlord may well say that they won’t hold you responsible for 100 per cent of the share.”


Rates Relief One way to reduce your outlay when you move is the potential for government or local authority rates relief. The Small Business Bonus Scheme applies to properties in Scotland with an RV of £18,000 or below, or any combination of properties below £18,000 and totalling no more than £35,000. Properties held elsewhere in the UK are not counted for the purposes of this relief. “You could look at a building and like it, but on further


investigation find that the rateable value is £19,000 which means you would then be paying full rates. There are other rates relief options, like Fresh Start where you get relief to take over a property that has been empty more than six months. It’s best to check if relief applies before you take a property and it’s pretty simple to see what the current thresholds are - all it requires is a simple online search.”


Flexibility Every business person is keen to see their firm expand. You can build in flexibility for growth by taking extra space at the start, or, if you expect your growth to be substantial, you should carefully consider the length of your lease. Break options can be attractive. If you have a 10-year lease,


you could include a five-year break. Similarly, a five-year lease with a three-year break. A break option is more commonly a


tenant only provision, usually with nine or 12 months’ notice to the landlord. “Should you exercise that choice make sure your rent, service charge and other payments are up to date and that you serve the notice correctly. If you are in default of lease obligations you could find the break option is invalidated. Your lawyer can keep you right. Of course, if you want to stay where you are you don’t need to trigger the break.” Alternatively, if you decide you want to move at year four


of a 10-year lease you can offer the space back to the market and try to find a sub tenant or someone to take over the lease. You must check that the lease allows you to assign or sub-lease – your lawyer can advise. In concluding, Ewan highlighted a rapidly


expanding sector of the market. “There’s a growing number of firms, large and small, making use of serviced office space. Although costs are higher, this route gives much more flexibility. You can have space for six months, a year, 18 months and so on and leave whenever you like, on relatively short notice. “There are a range of business


centres in Glasgow, some have a minimum three-month rental period


but others allow small business to rent for as short as a month. You get a desk space, the chance to use collaboration spaces and there are meeting rooms you can rent if need be. A business centre currently offers the ultimate in flexibility.” Making a move is, in the vast majority of cases, a positive sign; it’s usually something you do when your business is ready for its next stage of development. In the excitement you could be tempted to overlook some essentials. Accordingly, it might be sensible to take on an adviser. In any case, with a considered approach you can make yours a smart move.


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