Episode 6 – Understanding the hidden costs for charities in leasing a building

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: Understand how these costs impact your charity’s budget.
• Heads of Terms (HOTs): Detail all lease terms upfront to avoid unexpected expenses.
• Anticipating extra costs: Plan ahead for additional charges beyond rent.
• Variable vs. controlled costs: Learn how rent reviews and fluctuating charges affect finances.
• Service charges explained: Know what’s included, how landlords provide budgets, and why past charges matter.
• Initial surveys: Conduct surveys before signing to assess ongoing and future costs.
• Lease literacy: Read the lease thoroughly to prevent costly surprises.
• Insurance costs: Understand landlord-arranged insurance and your contribution.
• Rates and relief: Check if your charity qualifies for rate relief.
• Navigating VAT: Determine if VAT applies to your lease and its financial impact.
• Comprehensive cost awareness: Be proactive to avoid financial difficulties.

Join us for a deep dive into these critical considerations, helping your charity manage its finances more effectively and avoid unexpected financial burdens.