There comes a time in the evolution of many businesses when premises are required. For some that is right at the beginning, for others it is a stage of growth. When that time comes, what’s the best option – rental or purchase?
Each has its benefits and pitfalls and a good commercial lease solicitor in London, such as Saracens Solicitors, can help weigh these up.
Buying – an investment in the future
Buying a property is a big asset acquisition. Understanding how this affects a business can be a complex minefield and a commercial solicitor in London can be a useful guide.
For a start, capital investment is required both for the actual real estate and the various legal fees involved. Depending on the property, an owner may also need to consider renovations and planning permissions, and may still be liable for ongoing costs like rent. However, property is often a sound investment and can appreciate in value.
An owner also has more control over changes that they want to make to their property than a tenant does. They are usually responsible for all repairs except, potentially, where there are communal areas associated with the property.
Renting – flexibility and freedom
Renting is a smaller step than buying and requires less upfront capital. There are still costs associated with setting up a lease but some of these are borne by the landlord. They are also usually responsible for most kinds of repair to the property if necessary. The tenant may be responsible for some repairs and will need to restore the property to a reasonable state when they leave.
Leases are normally for fixed periods of time, often with an option to continue after the term expires. This offers the freedom to move around and upsize or downsize quickly in the future. However, the landlord has the same flexibility and, if their circumstances change, they may choose to end a tenancy and they are not required to give any justification where the lease is not a protected lease under the landlord and Tenant Act 1954.
Engaging a commercial lease solicitor in London ensures that all aspects of renting or buying a property are fully explored before a business owner commits. The security of experience is well worth the costs involved.