4. WHAT INITIAL COSTS ARE INVOLVED IN TAKING OUT A LEASE ON AN OFFICE SPACE?

Question

Accepted Answer

1) Most Tenants will engage a lawyer to negotiate a lease on their behalf and therefore incur legal fees; 2) A Tenant may be required to pay the cost of any Title Searches or other supporting documentation required to support the lease; 3) A bank guarantee is generally required (by the Landlord) as security against the performance of a lease. Most financial institutions will charge a fee to coordinate and produce a bank guarantee; 4) If the Tenant needs to update their insurance policies (as per the lease) to comply with the lease their insurance company may charge a fee for this. Note* It is important to check with the Landlord should they require any other payments, particularly if you are undertaking a fit out within the premises. It is also important to check with your solicitor should there be any other costs applicable under the lease.