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Property-Reducing Costs and Managing Liablities in an Economic Downturn

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As we all know it's a tough business environment and where revenues are declining businesses are looking to cut costs and plan ahead.

Costs associated with property ownership and occupation are no exception.  Businesses' property ownerships usually comprise the following:

Businesses are looking to review which properties are key to their continued operation  and which are surplus.

Freehold Properties

Consider the following options:

Where operational:

    Where surplus:

Leasehold Properties

Leasehold property interests are a common way of businesses occupying premises. Managing these liabilities that leases carry will be a key concern to most businesses.

Here's a 5 step guide to dealing with leaseholds:

Step 1 - Get a clear picture of your leasehold commitments

Being clear on the above points can help you understand clearly your continued costs of occupying, the options for vacating and your likely exit liabilities.

Step 2

Step 3 - Where keeping - reduce costs

Step 4

Where surplus, look to dispose

Relevant matters are:

Looking to the future

After many years of buyers and tenants chasing after properties the current economic challenges mean that the balance of bargaining power has changed.  It is no longer a seller's market, it's a buyer's market. As businesses cautiously tread forwards not only will this be reflected in terms of the prices  and rents paid for property but it will also be reflected more widely in the terms struck i.e. deals to buy properties may be subject to more conditions , smaller deposits and deferred payment arrangements whilst tenancies are likely to be subject to more flexibility e.g. break rights and more limited repairing obligations. So whether you are disposing or acquiring be practical and strike the best deal in this new environment.

Where we can help

We've got a team of lawyers who are familiar with and experienced in advising on all the above issues whether we're acting for seller's,buyers,landlords,tenants or funders.It's what we do day in day out.Our approach is to come up with practical cost effective solutions.If you've got a concern relating to a property or indeed want to discuss anything mentioned in this blog and how it could relate to your business please contact me for a free no obligation discussion.

Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.