Episode 6 - Understanding the Hidden Costs for Charities in Leasing a Building

In this episode, we explore the often-overlooked costs that charities face when leasing a building. We will provide essential insights and practical advice on navigating these financial obligations, including:

• 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.

Hosted on Acast. See acast.com/privacy for more information.