Hosts
Simon Taylor, Head of Property Services, Ethical Property Foundation and Sue Boyall, Partner, Excello Law.
Leasing a building involves more than just rent. Many charities overlook hidden expenses, leading to financial strain. This episode breaks down key costs and how to manage them effectively.
Key topics:
- Service charges, rates, and VAT: Unpack what these costs are, how they are calculated, and their impact on your charity's budget.
- Heads of Terms (HOTs): Learn the importance of detailing everything you want in the lease to avoid unexpected expenses.
- Understanding extra costs: Recognise the potential additional costs beyond rent, and why it's crucial to anticipate them.
- Variable vs. controlled costs: Distinguish between controlled rent and variable costs, and how rent reviews can affect your finances.
- Service charges explained: Discover what a service charge includes, how the landlord should provide a budget and balance sheet, and the importance of understanding past and future charges.
- Initial surveys: Conducting a survey at the beginning of a lease to understand historical and current service charge levels, and any future major plans.
- Lease literacy: Emphasize the necessity of reading the lease thoroughly to avoid assumptions and ensure clarity on all terms.
- Insurance costs: Understand how insurance is organised by the landlord, your contribution towards it, and how it might be included in the service charge or as a separate cost.
- Rates and relief: Clarify tenant responsibilities for rates, and explore the reliefs available to some charities.
- Navigating VAT: Learn how VAT applies in the context of your building lease, and the differences between VAT-liable and non-VAT-liable buildings.
- Comprehensive cost awareness: Ensure you are fully informed of all potential costs associated with leasing a building.
Join us for a deep dive into these critical considerations, helping your charity manage its finances more effectively and avoid unexpected financial burdens.
Need help navigating hidden property costs?
Our consultancy services provide expert advice to help your charity manage leasing expenses and safeguard its budget. Visit our consultancy pages for tailored support.
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