The hidden costs of moving business locations
Moving a business from one office to another can often be a matter of necessity, but these moves can often be unplanned and end up becoming very expensive.
Services are in place to help make the process as easy and as hassle-free as possible, but there are still plenty of hidden costs that companies need to be aware of.
Approval for change
When moving to a new location, a landlord must give his consent and approval for any non-structural alterations to the office space that are required. Such details are more important to address than ever as the construction sector continues to recover and new offices spring up across the UK.
A works licence will be appended to the lease once work is approved, but the process involved can add substantial costs to a move.
Professionals are required to approve the works of the occupier; meaning a surveyor and solicitor are required to document the changes which can add several thousand pounds on larger moves.
Stamp Duty Land Tax
On all property and land transactions in the UK, Stamp Duty Land Tax will be charged at a rate dependant on a number of factors.
There are plenty of different thresholds for different types of property and this area is usually dependant on the size of the transaction, whereby larger properties will inherently cost more.
Structural surveys
Before moving to a new office space, the building should be checked out to ensure it is fit for purpose.
The costs associated with this process are often dependant on the size and condition of the new premises but are likely to be significantly higher on larger and older buildings.
Insurance
While it is not the tenant’s responsibility to sort buildings insurance – the landlord needs to ensure this is done – it is possible for a tenant to cover the costs.
This can be done in the form of service charges from the landlord passed on to the tenant and can add further costs to a move.
When you add the underlying costs of transporting assets from one location to another and any potential issues involving staff being unable to move, the costs of changing location can suddenly creep up.
Being aware of any additional costs and factors likely to push the price up can help to save the pennies in advance.
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By Phil Smith