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    Getting The Right Premises

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    j.e.martinez1982
    This document provides guidance on finding suitable commercial premises for a business. It outlines factors to consider such as location, required facilities, and amenities. Options for obtaining premises include renting (leasehold) or buying (freehold), each with pros and cons. Sources for finding available properties include estate agents, surveyors, listings, and business parks. The costs of commercial properties are typically calculated per square footage, so determining space needs is important for budgeting.

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    Getting The Right Premises

    Uploaded by

    j.e.martinez1982
    10 views5 pages
    This document provides guidance on finding suitable commercial premises for a business. It outlines factors to consider such as location, required facilities, and amenities. Options for obtaining premises include renting (leasehold) or buying (freehold), each with pros and cons. Sources for finding available properties include estate agents, surveyors, listings, and business parks. The costs of commercial properties are typically calculated per square footage, so determining space needs is important for budgeting.

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    Getting the Right Premises

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    This document provides guidance on finding suitable commercial premises for a business. It outlines factors to consider such as location, required facilities, and amenities. Options for obtaining premises include renting (leasehold) or buying (freehold), each with pros and cons. Sources for finding available properties include estate agents, surveyors, listings, and business parks. The costs of commercial properties are typically calculated per square footage, so determining space needs is important for budgeting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views5 pages

    Getting The Right Premises

    Uploaded by

    j.e.martinez1982
    This document provides guidance on finding suitable commercial premises for a business. It outlines factors to consider such as location, required facilities, and amenities. Options for obtaining premises include renting (leasehold) or buying (freehold), each with pros and cons. Sources for finding available properties include estate agents, surveyors, listings, and business parks. The costs of commercial properties are typically calculated per square footage, so determining space needs is important for budgeting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Getting the

    right premises.
    Supporting you on your business journey.

    If you’ve decided to set up a business and you need premises, this is one
    of two guides that will help you make the right property decisions.
    Whatever type of premises you need, being clear about all the facilities you
    need at the property before you start looking will save time and money.

    This guide covers:

    • Location.
    • Facilities.
    • Amenities.
    • Help finding the right property.
    • The pros and cons of buying (freehold).
    • The pros and cons of renting (leasehold).
    • Affordability.
    What the property offers.
    Location.
    • How accessible does your property need to be for customers and/or suppliers?
    • Could environmental factors such as noise or pollution from your business be an issue?
    • Are there competitors already in the area? Will this help bring in customers or make things
    more of a challenge?

    Facilities.
    • What parking will you need?
    • Will you need meeting rooms, reception areas, warehouse space and storage?
    • If the premises are on a business park, what facilities are available on a shared basis?

    Amenities.
    • Is there sufficient gas, water, electricity and drainage capacity?

    Help finding the right property.


    There are a number of places you could search for premises:

    • Estate agents / commercial property agents.


    • Chartered surveyors.
    • Online and newspaper listings.
    • Local authority registers of vacant properties and managed workshop units.
    • Local industrial estates and business parks.
    • Hire a consultant to draw up a short-list of potential properties for you.

    As well as searching the market for you, commercial agents and chartered surveyors can
    help negotiate the terms of the property contract. Surveyors can give advice on property values
    and structural matters as well (for more on surveyors, see Guide 2 – Surveys, contracts and
    legal matters).

    Many of the sources above will have a contact list you can add your name to. They will then provide
    you with details of properties that become available. Some may also offer regular property
    newsletters, which are useful to give you a feel for what’s available and market prices.

    Don’t limit yourself to one source of information – sign up with several to make sure you get a good
    supply of property information.
    The pros and cons of buying and leasing.
    Just as with domestic property, commercial properties are usually available as either freehold –
    where you buy the property – or leasehold – where you rent it. Buying and renting property each
    have pros and cons.

    Freehold – the pros.


    • You have the freedom to use the building as you wish, within the law.

    Freehold – the cons.


    • If your business has little or no financial history you’ll find it difficult to get a commercial mortgage,
    or may have to pay a substantial deposit to obtain one.
    • For a start-up, freehold carries a big financial risk: you’ll need to ensure that you can generate
    sufficient profits to keep up repayments and cover any increases in interest rates.

    Leasehold – the pros.


    • Leasing requires minimal capital outlay at the start.
    • Compared to freehold, there is less financial risk.
    • Usually the lease is renewable and you have the right to remain (unless you breach your contract
    or the landlord wants to reoccupy the premises).

    Leasehold – the cons.


    • You are likely to have restricted use of the property, including limitations to make alterations to the
    building or to sub-let any extra space.
    • Agreeing the terms of the lease can be complicated.
    • Penalties and contingency charges in a lease can trigger at unexpected times and hold you back
    just when you need to move on.

    Affordability.
    • The cost of commercial property is usually calculated on a square footage rate, so work out
    how much space you will need and base your budget around that.
    • In addition to the cost of the lease or freehold, you may also need to consider moving and
    set-up costs such as refurbishment and/or new equipment.

    Any property given as security which may include your home, may be repossessed if you do not
    keep up repayments on your mortgage or other debts secured on it.

    All lending is subject to a satisfactory credit assessment.


    Specialist banking for the property sector.
    If you’re a property professional, investor, builder or a developer – we have a range of specialist
    banking services specifically designed to meet your needs. For details, visit us at:
    www.lloydstsb.com/property
    While all reasonable care has been taken to ensure that the information in this business guide is accurate, no liability is accepted by
    Lloyds TSB for any loss or damage caused to any person relying on any statement or omission in this business guide. This business
    guide is provided for information only and should not be relied on as offering advice for any set of circumstances and specific advice
    should always be sought in each instance.

    When using these services your agreement will be with the relevant third party and their terms and conditions will apply. Lloyds TSB
    shall not be responsible or liable to you for any failure by the third party to provide these services or in relation to use by the third party
    of any confidential information supplied to them by you.

    www.lloydstsb.com/business

    Lloyds TSB Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065.
    Telephone: 020 7626 1500.
    Lloyds TSB Scotland plc Registered Office: Henry Duncan House, 120 George Street, Edinburgh EH2 4LH.
    Registered in Scotland no. SC95237. Telephone: 0131 225 4555.
    Authorised and regulated by the Financial Services Authority under numbers 119278 and 191240 respectively.
    Lloyds TSB Bank plc and Lloyds TSB Scotland plc are covered by the Financial Services Compensation Scheme and the Financial
    Ombudsman Service (please note that due to the schemes' eligibility criteria not all Lloyds TSB Commercial customers will be covered
    by these schemes).

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