UK Business Information / Why Retain An Agent?

Firstly let’s consider some relevant questions:

What size of premises do you need? Is the space big enough to allow for growth during the period of your lease?

What length of lease should you go for if you are not seeking a freehold?

Can you get a break in your lease?

Can you sublet part or all of your space?

What are your repairing / dilapidation liabilities? Can various repairing obligations be excluded from your lease? Can you get a schedule of condition agreed, recording the state of the premises when you accepted them?

Can you get a cap on the service charge or an increase annually linked to the RPI (retail price index)?

What rent free period is possible? Do you need to hand this back if you have a break option and exercise the break? If you only take a short lease, does this mean there will be no rent free period?

How easily could you sublet / assign your space should you need to move before your lease expires?

How much will the premises cost to fit out? Fit out costs can vary greatly. Some premises might already be suitably fitted out saving you time and money. Some landlords may offer such high rent free periods / capital contributions on refurbished empty space that this might outweigh the benefits of a fully fitted “ready-to-go” premises.

Two properties may have the same square footage, but one may have more usable space than the other.

Some buildings may have a higher rent - but lower rates and service charges - making the combined cost cheaper than a building that has a lower quoted rent. Rental figures are always quoted on a per annum exclusive basis, so rates and service charge figures, insurance and utilities are in addition to the advertised rent.

Many leases are contracted outside The Landlord & Tenant Act 1954 part 2. This means that they are not legally renewable upon lease expiry, but are on the whole commercially renewed providing new terms can be agreed. Most companies accept this, provided the length of lease offered is sufficient. Some leases have the benefit of security of tenure meaning they do fall within the act. In such cases landlords must offer you a new lease at open market rent, unless they wish to develop or re-occupy themselves. The landlord has no other reason to refuse you a new lease providing all payments are up to date.