Advertisements for commercial property rentals often contain a number of abbreviations which can be confusing if you are new to the sector. Maunder Taylor offer a wide range of commercial properties to rent – and purchase – in Whetstone, Totteridge and the surrounding area. Here we explain some of the commonest forms of property ‘shorthand’ used in many adverts, including our own.
AGA – Authorised Guarantee Agreement
Some leases have an Authorised Guarantee Agreement written in. When a property’s lease is reassigned from one occupier to another, the previous owner of the lease can be held financially liable if the new lessee defaults in some way (for instance, fails to pay the rent or to carry out agreed repairs). An AGA also provides the landlord with the option to insist on the outgoing tenant taking on a new lease (on the same terms of the existing lease) if the new tenant defaults.
CEPC – Commercial Energy Performance Certificates
Energy performance certificates apply to commercial properties as well as residential ones; and from April 1 this year, all business premises need to have an EPC rating of Band E or above. Failure to meet this standard means that the landlord could face fines of up to £150,000. There are plans to make this more stringent in future – to Band C by April 2027 and Band B by April 2030.
If you don’t have a CEPC at all then you could still be fined £5,000 or a percentage of the property’s rental income.
The energy performance of a building measures the fabric of the building, not its operational use, and so an assessor will check the doors, windows and roofs to see how much energy is escaping, not how much is being used (see picture). Certificates are valid for 10 years; we recommend you check the terms of the lease to see who is responsible for meeting the cost of any energy performance improvements.
FR&I – Full Repairing Lease
This is a typical lease structure for a self-contained building or an “effective Full Repairing Lease” by way of the Service Charge in a multi-occupied building. This means that the tenant is responsible, either solely or collectively (where the property has several tenants), for the exterior repairs to the building.
PAX – Per Annum Exclusive
The PAX figure is displayed after a rent amount and means that the rent stated excludes business rates, service charges, insurance and VAT.
VOA – Valuation Office Agency
The Valuation Office Agency provides valuations and property advice to support taxation and benefits to the government and local authorities in England, Wales and Scotland. In the commercial sector, they compile and maintain lists detailing the rateable value of 2.1 million properties which have to pay business rates.
Note that the rateable value of a property and the amount you must pay in business rates are two distinct figures. The local authority will set this amount and you should contact them if you would like to know before you make any financial commitment of your own.
Commercial Property Investment in North London with Maunder Taylor
To check out all the commercial properties we have available to rent in Whetstone and the surrounding area, follow this link; if you are interested in purchases, then click here. Both pages are regularly updated when properties are let, sold or when new ones come onto the market.
If you are interested in business premises purely as an investment, you should contact our commercial management department. They offer a wide range of properties which can form part of a shared or a direct investment, depending on how much of a risk you want to take.
Whichever option you choose, our portfolio of properties generally yield 7-8% per annum net of purchase and management costs which are payable quarterly in advance, and we will take on all the management responsibilities for you. If you would like to know more, follow this link.