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| Property and Premises Issues |
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Sponsored By: King Sturge |
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For any small business, making the decision to expand, perhaps
beyond the comfort zone of the back room or study, and into commercial
premises, can seem fraught with risk and worry.
Whilst the renting of domestic residential property is protected by various
strands of statutory legislation, the basic tenet in commercial property is
that landlord and tenant, vendor and purchaser, are free to negotiate terms
freely. Only in relation to longer-term security of tenure and in some fairly
specific areas of landlord and tenant law, does the tenant have some statutory
protection.
However, premises are likely to be the second or third highest cost burden to
your business, after salaries, and sometimes IT. The property market is
exceedingly mature, with many landlords being highly experienced professionals,
and there are numerous potential traps for the unwary. An unwitting business,
concerned by myriad matters as they expand can very easily fall into one, or
more, of these traps.
This need not be the case and the best advice is to take advice. There is no
substitute to a clear, legally binding understanding at the outset of a
relationship, ensuring potential for future dispute is minimised. A small
financial investment in professional fees early in the process to ensure that
you are properly advised by real estate professionals and a solicitor, can save
considerable cost and heartache later.
There are numerous decisions to be made when setting up a small business. Where
to locate, what type of property, whether best to own or, at least in the short
term for flexibility, or to lease premises? All should be addressed, in
conjunction with a surveyor and a solicitor, early in the process.
It should be said, landlords are generally not "sharks". Most are highly
professional, and offer a high degree of customer service, some specialising in
the provision of workspace to small businesses. Others are small businesses
themselves, leasing surplus space to supplement revenues as they grow their own
business. However, they are in business to make money from their property
assets - and that means your money!
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For any more information or help please contact Jeremy
Day, King Sturge, Tel: 020 7493 4933
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