Renting a business property
Discussion
Ok...... So I've decided to take the plunge and get a unit for my business. I've been running it out of my house for a while, but now I need to employ a few admin, need storage for trailers and other items, plus room for future expansion I've decided to get a proper into.
Except I have absolutely no idea what I need to look for, how much it will cost, what's extra on top of the rent etc....
This is the unit I'm looking at
http://www.rightmove.co.uk/commercial-property-to-...
So on top of the monthly rent I'll have to lay vat, business rates, insurance and services. Also I guess it's self maintaining.
Now is there anyway of getting relief from business rates? If so where would I look. Currently the business that would rent the lock up doesn't earn any money. I'm paying for everything from my other company.
What else do I need to look for?
Thanks in advance
Except I have absolutely no idea what I need to look for, how much it will cost, what's extra on top of the rent etc....
This is the unit I'm looking at
http://www.rightmove.co.uk/commercial-property-to-...
So on top of the monthly rent I'll have to lay vat, business rates, insurance and services. Also I guess it's self maintaining.
Now is there anyway of getting relief from business rates? If so where would I look. Currently the business that would rent the lock up doesn't earn any money. I'm paying for everything from my other company.
What else do I need to look for?
Thanks in advance
You have it mostly covered in your post.
Your Rateable Value is £25,750 according to the Valuation Office website, so not eligible for small business rate under the current regime, although changes are afoot. You then pay 49.7p in the £ so just under 50% of the RV.
Most new leases would have some rent free or other incentives depending upon the term, so ask them what they will offer if you are not using an agent yourself and compare it to alternative options.
Would advise that you appoint an agent to negotiate for you- money well spent in the long run. Unless they agree to it the rent and service charge will be payable quarterly in advance not monthly. The lease should be inside the landlord and tenant Act.
Although it looks in reasonable repair would suggest a schedule of condition is appended to lease to reference existing state of repair and redecoration. Surprised that unit has such a poor energy rating. Ask for a full suite of test certificates for all electrical and gas etc. Also check that the unit has planning for your required use whilst they may want a rent deposit deed from you to cover future default.
Although it looks in reasonable repair would suggest a schedule of condition is appended to lease to reference existing state of repair and redecoration. Surprised that unit has such a poor energy rating. Ask for a full suite of test certificates for all electrical and gas etc. Also check that the unit has planning for your required use whilst they may want a rent deposit deed from you to cover future default.
You both mention using an agent to negotiate.
Forgive my ignorance, what do you mean by this?
However, with business rates of £1000 a month, I think that unit is out.
http://www.rightmove.co.uk/commercial-property-to-...
This one is similar, and cheaper so might fall under the business rates relief based on this:
http://www.swindon.gov.uk/info/20041/business_rate...
Forgive my ignorance, what do you mean by this?
However, with business rates of £1000 a month, I think that unit is out.
http://www.rightmove.co.uk/commercial-property-to-...
This one is similar, and cheaper so might fall under the business rates relief based on this:
http://www.swindon.gov.uk/info/20041/business_rate...
On business rates there is a revaluation next year, which means that rateabke values will be based on rents as at 1 April 2015. Many areas will see RVs falling, but the rate in the pound is likely to go up.
The cut-off point for exemption is likely to change, something was announced recently but I cannot remember what! Will need to look it up.
The cut-off point for exemption is likely to change, something was announced recently but I cannot remember what! Will need to look it up.
singlecoil said:
If any unit you fancy has been empty for a while, you should ask for (and get) a reverse premium. This will take the form of a rent free period when you move in. Ask for two quarters.
A reverse premium and rent free are two different things.Reverse Premium would be Landlord giving you cash (not likely to happen!).
Rent Free means just that....
surveyor said:
singlecoil said:
If any unit you fancy has been empty for a while, you should ask for (and get) a reverse premium. This will take the form of a rent free period when you move in. Ask for two quarters.
A reverse premium and rent free are two different things.Reverse Premium would be Landlord giving you cash (not likely to happen!).
Rent Free means just that....
singlecoil said:
surveyor said:
singlecoil said:
If any unit you fancy has been empty for a while, you should ask for (and get) a reverse premium. This will take the form of a rent free period when you move in. Ask for two quarters.
A reverse premium and rent free are two different things.Reverse Premium would be Landlord giving you cash (not likely to happen!).
Rent Free means just that....
Rent Free is the equivalent where you get a new lease.
singlecoil said:
surveyor said:
singlecoil said:
If any unit you fancy has been empty for a while, you should ask for (and get) a reverse premium. This will take the form of a rent free period when you move in. Ask for two quarters.
A reverse premium and rent free are two different things.Reverse Premium would be Landlord giving you cash (not likely to happen!).
Rent Free means just that....
OK, well the unit I posted in the OP is far too expensive once you include business rates. However I do think it would be more suitable long term as it would allow me to grow in to it. However, whilst I could sustain the initial extra cost I'm not sure I want to.
So I'm looking at this one http://loveday.uk.com/loveday-properties/unit-12-a...
I lose the yard, and the office upstairs, but the internal warehouse area is virtually identical. Is there somewhere I can find out the business Rates without calling up the council agents? For now assuming £15000 it would give me a yearly cost of £23000 as opposed to £32500 for the unit above.
I can build a small office in the front for a couple of desks so that's not a problem. As for the yard, its unfortunate to loose that as it would be great to have that to store a couple of trailers. I'm not sure that that worth £10000 a year.
So I'm looking at this one http://loveday.uk.com/loveday-properties/unit-12-a...
I lose the yard, and the office upstairs, but the internal warehouse area is virtually identical. Is there somewhere I can find out the business Rates without calling up the council agents? For now assuming £15000 it would give me a yearly cost of £23000 as opposed to £32500 for the unit above.
I can build a small office in the front for a couple of desks so that's not a problem. As for the yard, its unfortunate to loose that as it would be great to have that to store a couple of trailers. I'm not sure that that worth £10000 a year.
surveyor said:
Thank you for that - much appreciated. So we have Unit 6 in the OP
£20000 and year, plus a rateable value of £25500 at 49.3p so £12571 so total £32571 a year
The other unit in my post above is £14500 a year, with a rateable value of £14250 at 49.3p so £7025 so a total of £21525 so I'd be paying £1000 month for a lock up outside which would be lovely and an office that I don't really need for the time being. Is there a way to sublet the office to try and recoup this £1000
surveyor said:
Thank you very much, they have another unit 18b with a rateable value of 10000 so would be free from next year. Cheers
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