Reducing Property Costs

08/01/2009

LOOKING TO REDUCE YOUR PROPERTY COSTS?

Businesses, large and small, affected by the economic slowdown are looking at ways to reduce costs. Property consultants, Aitchison Raffety have come up with a list of potential areas where property costs, often a major financial outgoing, could be reduced.

Surplus Space

If you have space that could be sub-let, then this is an option worth considering. A good surveyor can advise whether this is possible under the terms of your lease, how practical this is, how much rent could be obtained and then market the space on your behalf.

Rates

Are you paying too much? Is it worth considering an appeal? This could reduce your ongoing rates liability and potentially give a rebate back to 01 April 2005. Can you use the new Empty Rates exemption?

Rent

If you are faced with a rent review, it is essential that professional advice is obtained in order to ensure the most favourable result is achieved. Leases normally prevent the rent from being reduced at review, but this is not always the case.

Break Option

If your lease contains a break option and you are looking to leave the premises, there may be strict conditions that need to be complied with to ensure the notice you give is valid. If you intend to stay in the premises, a break option may also give you an opportunity to negotiate more favourable lease terms and a lower rent.

Lease End

Most leases give the tenant a right to renew unless it has been specifically excluded. Typically, tenants do not realise how much the legislation can be biased in their favour and this can be used to negotiate favourable new lease terms. Existing rentals can be reduced at lease renewal. If you are vacating, a building surveyor can limit your dilapidations liability.

Capital Required

If you own the freehold of your premises, it may be worth considering a sale and leaseback of the property. The freehold of the premises could be sold to an investor and then a lease taken on the property. This allows the raising of capital without the inconvenience of moving. 2/…

Aitchison Raffety has offices in London, Hertfordshire, Buckinghamshire, Oxfordshire and in Birmingham and Bath. For further information call 0800 2800 302 or email: costsaving@argroup.co.uk or visit the web: www.argroup.co.uk