Advice With Lease & Registering Ltd Company Address

[Arehman99]

Hello everyone

I am in the process of starting my own business. Though I have many questions, I needed advice please on:

1 Address used on Ltd company - I see some people use their home address and some use the site address when registering with company house. Are there any advantages of using 1 over the other? I want to use site address but I have a ‘chicken-egg’ situation - I don’t want to register with company house until the lease is finalised but I need the company name and address to go on the lease for which I need to register. How to I go about on this? What if I register and the lease falls through?

2. When undertaking a lease, what kind of things should I be looking out for and adding/avoiding in the contract/lease? Also if there is no mention of a specific thing/clause, could it come back to haunt me later I.e if there is no mention of who would cover the cost of repairs when I move out, could the landlord come back and try and charge me even though there is no mention on the lease?

thank you very much

 

[ecommerce84]

I can’t help you with number 1, but I can help you with point 2.

You should never, ever sign a commercial property lease without the services of a solicitor who specialises in commercial property leases.

There are so many pitfalls for you to fall into. It’s not like renting out an apartment, leases can run into dozens of pages in length.

There are 2 reasons people avoid using a solicitor:
1. They think they can do it themselves
2. They want to save a few pounds.

My responses would be:
1. You can’t.
2. You stand to lose more than you save and if you can’t afford to use one, you shouldn’t be taking on a lease anyway.

 

[Arehman99]

I can’t help you with number 1, but I can help you with point 2.

You should never, ever sign a commercial property lease without the services of a solicitor who specialises in commercial property leases.

There are so many pitfalls for you to fall into. It’s not like renting out an apartment, leases can run into dozens of pages in length.

There are 2 reasons people avoid using a solicitor:
1. They think they can do it themselves
2. They want to save a few pounds.

My responses would be:
1. You can’t.
2. You stand to lose more than you save and if you can’t afford to use one, you shouldn’t be taking on a lease anyway.

thank you for your reply. Sorry I should have clarified I do intend to use a solicitor but wasn’t sure if I should be on the look out for the Clauses myself aswell or just leave it in the solicitors hands and hope they will protect me . Thanks

 

[Mr D]

It's useful to read the lease. Among other things it may well affect your planning.
But yes use a solicitor, get them to explain stuff. What is in the lease you and the landlord agree to. And the wording matters.

Use home address - I had a warehouse and still got much of the business post including official notification sent to home address.
Does not make your property any more at risk than using accountant address or relative address.

 

[pentel]

When you sign a commercial lease you are committing to pay the total amount of the lease.

£100 a week doesn't sound to bad .. a 10 year lease at that rate is a commitment for £52,000

 

[Arehman99]

It's useful to read the lease. Among other things it may well affect your planning.
But yes use a solicitor, get them to explain stuff. What is in the lease you and the landlord agree to. And the wording matters.

Use home address - I had a warehouse and still got much of the business post including official notification sent to home address.
Does not make your property any more at risk than using accountant address or relative address.

Thank you very much. If I use my home address could that creat any issues for me? For example I intend to put the lease in my company name and not my personal name (limited liability) but if the lease has my company name and my personal address, would I not be Personally liable for the lease?

 

[Mr D]

Thank you very much. If I use my home address could that creat any issues for me? For example I intend to put the lease in my company name and not my personal name (limited liability) but if the lease has my company name and my personal address, would I not be Personally liable for the lease?

To be personally liable for the lease you have to sign a personal guarantee. They are common but not every landlord does one.
Personal guarantee is you personally guaranteeing the lease. Which in the example @pentel gives would be 52 grand guarantee if the company did not pay.
In reality it's to break clause or when someone else takes on the lease from the landlord (not from you).
I was lucky, a company took my unit from landlord a couple of months after I handed back the keys so I am at best liable for a couple of months rent. Lease later taken under false pretences but that was not my problem...

 

[Arehman99]

To be personally liable for the lease you have to sign a personal guarantee. They are common but not every landlord does one.
Personal guarantee is you personally guaranteeing the lease. Which in the example @pentel gives would be 52 grand guarantee if the company did not pay.
In reality it's to break clause or when someone else takes on the lease from the landlord (not from you).
I was lucky, a company took my unit from landlord a couple of months after I handed back the keys so I am at best liable for a couple of months rent. Lease later taken under false pretences but that was not my problem...

Thank you. Are there any tax or any other benefits of using your home address to register your company? The premises I have selected are very tiny and I will probably have to do the admin work from home due to limited space. Thanks

 

[Mr D]

Thank you. Are there any tax or any other benefits of using your home address to register your company? The premises I have selected are very tiny and I will probably have to do the admin work from home due to limited space. Thanks

You can claim a few quid for use of home as office - whether you register there or not.
Most small business owners appear to at least do a bit of admin at home.

It's not a lot you can claim with a limited company - someone will have the exact figure. Your accountant will know it anyway or come kind soul with their paperwork to hand can advise.

 

[Arehman99]

You can claim a few quid for use of home as office - whether you register there or not.
Most small business owners appear to at least do a bit of admin at home.

It's not a lot you can claim with a limited company - someone will have the exact figure. Your accountant will know it anyway or come kind soul with their paperwork to hand can advise.

Thank you

 

[Scalloway]

Your employer can pay you up to £6 a week (£26 a month) to cover your additional costs if you have to work from home. More information here.

https://www.gov.uk/tax-relief-for-employees/working-at-home

 

[Arehman99]

Your employer can pay you up to £6 a week (£26 a month) to cover your additional costs if you have to work from home. More information here.

Thank you. So generally there is no difference or advantage in registering your home address over Your premises address with company house?

 

[Scalloway]

So generally there is no difference or advantage in registering your home address over Your premises address with company house

These are two different things.

Using your home address has advantages as you will be certain of getting all mail delivered. The downside is that if your company gets into difficulty you can have debt collectors or disgruntled customers coming to your door.

The £6 a week allowance has nothing to do with where the company is registered. It is a concession available to anyone whose employer requires them to work at home.

 

[Arehman99]

These are two different things.

Using your home address has advantages as you will be certain of getting all mail delivered. The downside is that if your company gets into difficulty you can have debt collectors or disgruntled customers coming to your door.

The £6 a week allowance has nothing to do with where the company is registered. It is a concession available to anyone whose employer requires them to work at home.

Thank you for your reply. Yeh, I certainly wouldn’t want anyone coming to my door.

 

[Mr D]

Thank you for your reply. Yeh, I certainly wouldn’t want anyone coming to my door.

Generally unless you get into debt you don't get people at the door.

 

[Arehman99]

Generally unless you get into debt you don't get people at the door.

Thank you