Taking on a commercial lease involves lots of details and costs. In order to be prepared, you need to make sure you have a handle on the implications of all the nuances involved. When it comes to the legal aspects, Saracens Solicitors can take on a lot of the burden of administration and compliance. Investing in a good commercial lease solicitor in London can save you time, money and hassle in the long run.
One of your major costs each year will be business rates. This is a tax applied by your local authority based on the rateable value of your business. This figure is then multiplied by a figure which is based on the rate of inflation. Some small businesses are exempt from paying business rates if they are valued at less than £12,000.
Problems with business rates
One of the issues that many business owners face when it comes to business rates is that they can rise quite sharply. They are re-evaluated at regular intervals. This is normally every five years. The economic changes over such a long time period mean that when the new figures are announced, they invariably jump up substantially causing financial problems for many businesses. New measures are set to be introduced from 2022 that will reassess rates every three years to try and address this issue.
Are business rates included in your rent?
When you negotiate an agreement using Saracens Solicitors as your commercial lease solicitor in London, there is plenty of flexibility within the terms that we can negotiate for you. Typically, the tenant is solely responsible for paying business rates. However, there are circumstances in which some or all of the rates would be included in the rent.
It’s important to note that you remain responsible for the business rates as long as you have the right to occupy the property. If you decide to end the lease early for any reason, you need to take this into account when calculating your residual costs. Providing clarity around obligations like this is part of the service we provide when acting as your commercial lease solicitor in London.