• Rent
• Business Rates - the Local Authority will be able to advise you of precise amounts, but initially budget circa 40% of rent. Your surveyor will be able to advise any ways to mitigate these liabilities. Liability commences upon completion of the lease, so be prepared to start putting the premises to good use promptly.
• Service Charge payable to the landlord for common parts and maintenance, servicing and repair - ask for clear estimates in the negotiation stage.
• Insurance - either payable to the landlord as a reimbursement of his premium, or your direct liability if the premises are self-contained. Consider building insurance as well as your employer's liability, product liability, third-party insurance and other business insurances [ cross-referenced to insurance chapter??]
• VAT payable. Some commercial premises attract VAT liability on rent and service charges whilst others do not. Enquire in the leasing negotiation phase.
• Professional fees. Obtain clear quotations from your surveyor, solicitor and any other professionals, for example structural surveyors or engineers, environmental specialists, architects, planning specialists etc.
• Fit out and redecoration costs. Enquire whether the landlord is willing to contribute if significant expense is required. Be wary of your obligations at lease expiry if you have to incur significant costs at the start.
• Contingency. Be aware that negotiations might falter having incurred significant costs. Try to ensure your liabilities are mitigated. Many, but not all, advisers will agree to fees linked to success but be prepared to incur duplicate costs if the first premises fall through.
• Be prepared for the unexpected. No matter how much you plan, you are taking on significant responsibilities and with this comes a range of prospective liabilities.

For any more information or help please contact Jeremy Day, King Sturge, Tel: 020 7493 4933