About Leasehold Offices
about leasehold office space rental in London and the UK.
- What is a Lease?
- Leasehold Offices - alternative Names
- Who uses Leasehold Offices?
- Advantages and Disadvantages of Leased Space
- Prices associated with Leasehold Offices
- Where can I find Leasehold Office Space?
What is a Lease?
A lease is a signed legal contract between a landlord and a tenant which grants rights and duties on both signatories/parties. The standard form of lease can be from 1 - 15 + years. Sometimes a lease can be protected by the Landlords and Tenants Act, but other times it can be granted outside of that, allowing the landlord more flexibility when the lease is finished.Return to top of page
Leasehold Offices - alternative Names
Leasehold offices can also be referred to as Traditional Offices and Conventional Offices.Return to top of page
Who uses Leasehold Offices?
Leasehold Offices are preferred by middle to large sized organisations who may own their own furniture, telephone systems and IT infrastructure.
Most of them also feel able to predict their company size in the mid-to-long term future so may feel the benefit from a flexible leasing option.
Advantages and Disadvantages of Leased Space
Advantages can include:
- Longer rental term - Allowing you a longer rental security of the office on the current terms agreed.
- Empty Space - You can bring in the furniture, services and facilities you require.
Disadvantages can include:
- Inflexible fixed rental period - Can be 3+ years which is problematic if you need to expand, downsize or relocate.
- Space is unmanaged - Can be time consuming to manage facilities such as toilets/kitchen areas/meeting rooms etc...
- High fit-out charges - Unlike Serviced Offices, Leasehold Offices are usually un-equipped, which means that the inital cost of equipping the office could be very expensive.
- Having to Manage bills - Trying to find and organise utility companies can be time consuming and therefore costly, especially tasks such as paying invoices, solving disputes etc... Unlike Serviced Offices, you need to manage and pay these individually.
- Security - Without a reception that's managed by reception staff, security can sometimes be compromised.
Prices associated with Leasehold Offices
The following is a chart of the basic associated expenses with renting a Leasehold Office.
|Rent||The basic rent for the office||Usually paid monthly or quarterly in advance to the landlord.|
|Service Charge||This covers the maintenance and upkeep of your property||Usually paid monthly or quarterly in advance in association with the rent to the landlord.|
|Business Rates||This is a council tax for businesses. The amounts payable usually depends upon your area that you are renting in, company status i.e. charity/not for profit organisation and amount of space actually used as 'workspace' in the property.||A separate payment payable directly to the local council. Some offices may offer an all inclusive square foot pricing which includes business rates, so the amount would then be payable to the landlord|
In addition to this, you will have all your separate utility bills to add on.Return to top of page