7 Steps to a successful lease

Posted on June 14, 2011 by admin    Comments Off

Whether you’re looking to lease a new office, industrial or retail unit, or your current lease is soon to expire, you need to take control and be sure you’re in the best position to obtain the lease agreement that is right for you and your business.

Here are 7 steps to help you get there……………..

1 Take professional advice. Entering into an agreement for a lease is potentially one of the largest contracts you will enter into and your commitment to meet its obligations, and payments, could run on for years. Instruct a chartered surveyor who is regulated by the RICS and will hold PI insurance.

2 Be aware of the Code for Leasing Business Premises in England & Wales. Compliance is voluntary but many large landlords will be aware of the code. It is a code for good practice.

3 Be aware of the RICS code of practice; Service Charges in Commercial Property. A voluntary code but as guidance note it has greater effect to RICS surveyors.

4 Always have a back-up property. If negotiations for your 1st choice property should stall then you need to be prepared to pull your papers and move on.

5 Be aware of the full costs applicable to the lease and your occupation; Solicitors fees, SDLT, rent deposits and service charges, insurance, utilities charges.

6 Don’t take the word of the agents. If it’s not in the lease then it’s not in the contract!

7 Finally, you only get one chance to negotiate your lease terms, so take advice early. Be clear on what’s on offer and what you’re willing to negotiate on and don’t assume anything.

Visit www.leasingbusinesspremises.co.uk for a copy of the code.

PLEASE NOTE;
A business lease is a legally binding contract and failure to comply with its terms and conditions could lead to court action and financial loss. RPS Ltd recommends that you obtain advice from an RICS regulated practice to obtain professional opinion before entering into such an agreement.

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Excluding the Landlord and Tenant Act 1954

Posted on June 14, 2011 by admin    Comments Off

The three steps
• Step 1 – Notice • Step 2 – Declaration • Step 3 – Note in lease

From 1 June 2004 procedures changed for excluding the security offered to business
tenancies by sections 24 to 28 of the Landlord and Tenant Act 1954. It is no longer
necessary to apply to the Court to obtain a Order authorising the agreement reached by
the landlord and tenant to exclude the security of tenure provisions. Instead, the new
procedure to follow involves compliance with the three steps as set out below. Failure
to follow this procedure could see the tenant acquiring the security of tenure provided
by the LTA 1954.
Step 1 – Notice
The landlord must serve on the proposed tenant a notice in a prescribed form
containing a “health warning”. The “health warning” explains to the proposed tenant the
effect of entering into a contracted-out tenancy, the most important point being that the
tenant will have no right to stay in the premises once the lease ends. The notice must
be served before the new tenancy is entered into or the tenant becomes contractually
bound to enter into it. However, the landlord should only serve the notice on the tenant
once the terms of the new lease have been agreed (or the lease is substantially in its final
form) so as to avoid the risk of the notice subsequently being held to be invalid. Whilst
not specifically required, it is good practice to attach a copy of the draft lease to the notice
itself.
Step 2 – Declaration
Once the notice has been served, the proposed tenant must either sign a declaration or
swear a statutory declaration.
• Notice served at least 14 days before the tenancy is granted/tenant becomes
contractually bound:- tenant signs declaration.
• Notice served less than 14 days before the tenancy is granted/tenant becomes
contractually bound:- tenant swears statutory declaration before a solicitor.
Both the declaration and the statutory declaration must be in the prescribed form. Both
declarations confirm that the tenant has received the landlord’s notice containing the
“health warning”, that the tenant has read that notice, and that the tenant accepts the
consequences of entering into a contracted-out tenancy.
Step 3 – Note in lease
The new lease must refer to:
• the service of the landlord’s notice;
• the declaration or statutory declaration made by the tenant; and
• the parties’ agreement to exclude the provisions of sections 24 to 28 of the Act.
It is good practice to store copies of the landlord’s notice and the tenant’s
declaration/statutory declaration with the lease.
More information
RPS Ltd, www.rpsltd.co
This information has been prepared by
RPS Ltd as a general
guide only and does not constitute
advice on any specific matter. RPS Ltd
recommend that you seek professional
advice before taking action. No liability
can be accepted by us for any action
taken or not taken as a result of this
information.
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6 steps to lowering your business rates demands

Posted on June 12, 2011 by admin    Comments Off

Business rates demands are an often forgotten element of the cost of property ownership and there are many examples of business’ that have run into financial difficulty complaining that the high charges were a factor in their business failure.
Your business rates are calculated by the Valuation Office Agency (VOA) and are collected by your local authority. The calculation is based on your property rental value and the use to which your property is made (or can be made).
The last revaluation for calculating your rates was carried out in April 2010 and since then many business organisations have seen an increase in the demands being raised.
You should check the calculation made on your business is correct as there are areas from which you can appeal for a reduction or relief from these charges. Here are 6 quick steps that could see your charges drop;
1 The Government introduced a temporary increase for businesses eligible for Small Business Rates Relief (SBRR). Check your eligibility.
2 Mandatory relief is available to registered charities and to Community Amateur Sports clubs. Do you qualify?
3 Discretionary relief is available to non-profit making organisations and this is judged on set policy guidelines. If you think you qualify then approach the VOA.
4 Is your property empty or unoccupied, have you claimed relief from payment (3 months for offices and a further 3 months for industrial units)?
5 Has there been a negative impact on your trade due to vacant commercial properties in the local area, or major works such as road digging that has reduced customers accessing your business?
6 Do you still use the premises in the same way as you did when the revaluation took place, is there a new layout or alterations? These could affect the way the property is valued.
If you are thinking of appealing to the VOA then ensure that you have good records such as dates and photos as evidence to support your case. The rewards can be significant and you should consider seeking specialist advice from an RICS chartered surveying practice.
Further information is available from;
Valuation Office Agency www.voa.gov.uk
Your local authority will have leaflets such as Summary Valuations (V07132)

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Bribery Act 2011

Posted on June 6, 2011 by admin    Comments Off

The Bribery Act 2011 comes into effect from 1 July 2011 and the Government has published its much anticipated Guidance. The main Guidance produced should help commercial organisations adopt procedures to prevent persons associated with them (eg. their agents at home or abroad) committing acts of bribery and thereby reduce their exposure to prosecution under the Act. There is also a useful Quick Start Guide, aimed specifically at SMEs.

The Act comments on;
offering or receiving a bribe;
bribery of foreign officials; and
failure to prevent a bribe being paid (on which see below the “adequate procedures” defence),
are “quite tough rules”. The main thrust of the Guidance, however, offers reassurance to businesses that “combating bribery is about common sense, not bureaucracy”.

The key points to note are as follows:

Corporate Hospitality
The guidance makes clear that reasonable hospitality to meet, network and get to know your clients will not fall foul of the new legislation.

Adequate Procedures Defence
In relation to the offence of “failure to prevent a bribe being paid”, the procedures that need to be put in place in order to rely on the “adequate procedures” statutory defence need only be proportionate to the size and nature of your business.

Whereas major multi-nationals must exercise greater due diligence and have more detailed compliance procedures in place, verbal communication may suffice for a small company. If there is very little risk of bribery being encountered by members of your company or on its behalf, no specific bribery prevention policies will be required.

Associated Person
A company will only be held criminally liable for the acts of an “associated person” where that person actually represents or performs services for it and the bribery committed is intended to benefit that company. It is very unlikely therefore that a company will be liable for the actions of someone who simply provides services to it.

Facilitation Payments
Facilitation payments, which are payments made to induce officials to perform routine functions that they are obliged to perform in any event, remain illegal under the Act.

Prosecution
Cases may be brought only when either the Director of Public Prosecutions or the Director of the Serious Fraud Office is satisfied both that:

i. a conviction is more likely than not; and

ii. prosecution is in the public interest

Please follow the link below to obtain published guidance on how the act may effect you;

http://www.justice.gov.uk/downloads/guidance/making-reviewing-law/bribery-act-2010-guidance.pdf

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RPS Blog Published!

Posted on May 28, 2011 by admin    Comments Off

Welcome to the RPS blog.  You will find regular updates of useful information regarding our services.  Please feel free to leave comments!

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