Commercial Property in focus: Buying vs Leasing your business premises
In our last featured article we discussed how important choosing the correct location for your business can be. It can be the difference between your business succeeding or not. Various factors need to be considered to find the right location but what happens once you find the right location?
You will need to consider if the property you have found is the right size, does it meet the requirements of your business now but also will it meet your requirements in the future? How long you expect to stay at the location can bring with it a whole load of legal matters to consider. Will it be better for you to purchase a freehold property if you are in it for the long term or are you better off entering into a lease? Finances will pay a key part in the decision making process also but what are the main points to consider other than affordability?
Owning your property on a freehold basis obviously has its benefits as you won’t have to adhere to a landlord’s rules and regulations and will have more of a say as to how you operate from the property. However, occupying a property under a lease will have its own benefits as it will give you the flexibility required should you need to move in the future which you can do as long as the lease contains the necessary clauses or the length of the lease term has been agreed for the required period at the outset. Choosing the right property type for your business should always be a key part of your business plan.
Away from owning property or occupying under a lease there are also shorter term solutions if you need a short term solution for your business. You can occupy a business premises under a licence which is a consent to use the property from the owner or a tenancy at will which is a short term tenancy with flexible terms which can be ended by either the landlord or tenant on short notice. However both the licence and the tenancy at will generally will not provide the tenant with ‘security of tenure’ which is a legal term described a right of a tenant to occupy a property after the lease has expired. We won’t get into the legal technicalities surrounding security of tenure as that is probably another topic of its own but if you are planning long term for your business it will be another important factor to consider.
There is a lot to consider when deciding on the right business premises for you. Our commercial property team is always on hand to provide you with the advice you need to ensure you are in the best possible premises for your business on the terms which are right for you. As well as assisting tenants or buyers of commercial properties we provide relevant advice for landlords or sellers to ensure their interests are protected in the sale or a lease of a commercial property. To find out more or if you need any assistance please call our commercial property team on 02476 387821 or email akang@willsonslegal.co.uk .
