Business Premises

When looking at potential business premises you may want to consider the following issues with your professional advisers:

Do they meet your particular requirements?

• Planning, environmental or other restrictions may prohibit or restrict certain industrial/manufacturing activities
• Can you make alterations to/change your use of the premises if you want to expand your operations?

Access

• Is access obtained directly off a publicly adopted highway or do you need a right of way over a private road?
• Local traffic restrictions eg on lorry routes could affect your business

Condition of the premises

• Repairing obligations could be onerous
• A survey could detect hidden problems

If you are leasing the premises

• Check the amount of other outgoings payable eg business rates and service charge
• If there is a service charge, what services does the landlord provide?
• How is any service charge calculated? Are any substantial charges envisaged in the near future?
• How often is rent reviewed? Can it go up as well as down?
• Are there restrictions on selling or subletting the premises?

Insurance

• Who is responsible for insuring the premises - you or the landlord?
• If the landlord is responsible for insuring, your interest should be noted on the policy

Termination

• At the end of the lease will you have an automatic right to renew as a protected business tenant?
• Is there a "break" clause allowing you to get out before the end of the lease term?

Andrew Woods, Partner
June 2003