08 November 2016
If you are looking for new short-term premises for your business, did you know that there are actually a whole range of legal forms a short-term letting can take? This Inbrief sets out the different options available for short-term occupation of business premises and considers the advantages and disadvantages associated with each.
When looking to move into new premises many business owners will, in an ideal world, want a ‘belts and braces’ style lease, clearly setting out the key provisions such as rent and duration (known as term) and offering a high degree of security.
However, a formal lease may not be the most appropriate option if the premises are only required for a short period. Given the costs associated with drafting and negotiating a full lease, many landlords and indeed tenants may be unwilling to go down this route when cheaper options will suffice.
This note considers the following options:
- Tenancies at will
- Group sharing arrangements at regular intervals
- Disadvantages of a lease
- A lease (even for a short term) tends to be a long document and it takes time to negotiate terms, meaning higher legal costs
- Obligations may be quite wide-ranging with the inevitable attendant liabilities and costs, as the landlord will pass full responsibility for the premises to the tenant
- Stamp Duty Land Tax (SDLT) may be payable on the lease