Written by Lauren Toynton, Solicitor, Spire Solicitors LLP.
If you are considering taking on the lease of a commercial premises, then the likelihood is you are either starting a new business, or relocating a current one. Either way, chances are you already have your hands full with the business aspects and could do without the additional stress of finding the perfect premises and budgeting for it.
Finding the ideal premises for your business is incredibly important and is something which needs to be at the forefront of your mind. Budgeting at the outset is important to make sure that you have an idea of the likely costs involved.
When planning your budget we would advise you to consider:
Legal Fees – We would always advise you seek independent legal advice as a tenant, to ensure the legal title to the premises is suitable and the lease reflects your needs (i.e. that you have adequate access rights, parking, planning permissions etc.). The cost can fluctuate depending on how complicated the matter is but Spire Solicitors LLP will be able to give you an indication of fees fairly early on.
Stamp Duty Land Tax – As a tenant you may incur a Stamp Duty Land Tax charge on the grant of your new lease. The amount payable can vary and it will be dependent upon how long your lease is for and the amount of rent/premium you are paying.
Searches – We recommend you take the same approach when leasing a property as to when you buy a property. You ought to consider the cost of ordering searches such as:
- Local Authority Search – Provides details of any enforcement notices, planning permissions, building regulations etc.
- Environmental Search – Provides information in respect of flood, contaminated land and ground stability etc.
- Water and Drainage Search – Provides details as to the connections at the property and highlights any water pressure/quality issues there may be.
This isn’t a definitive list and is only intended to act as a guide. If you’d like a detailed estimate then please contact Spire Solicitors LLP for all your legal needs.
