By Nicole Frankiewicz, Trainee Solicitor
When it comes to commercial property deals, the headline numbers are just the beginning. Whether you’re buying, leasing, or selling, it’s the hidden costs – the ones that don’t show up on page one of the contract – that can really bite.
At McHale & Co, we work with first-time tenants and seasoned landlords alike, and no matter how experienced you are, these sneaky expenses can still catch you off guard. So, let’s break down what to look out for – and how to avoid costly surprises.
1. Service Charges & Maintenance Costs
The trap:
You’ve negotiated the rent, agreed the lease, and everything looks good… until that hefty service charge invoice lands. Suddenly you’re paying for everything from car park resurfacing to communal flower beds you didn’t even know existed.
How to avoid it:
Always request a full breakdown of service charges in advance – including historic costs. Don’t just take the landlord’s word for it. We’ll help you negotiate caps, exclusions, or clearer terms to protect your budget.
2. VAT – The Silent Budget Killer
The trap:
Not all commercial properties attract VAT, but when they do, it can add 20% to your costs overnight – including rent, purchase price, and professional fees.
How to avoid it:
This is one of those areas where early legal advice is key. We’ll identify if VAT applies and work with your accountant to ensure your cash flow planning isn’t derailed later down the line.
3. Dilapidations – The Hidden Exit Fee
The trap:
At the end of a lease, you might be on the hook for returning the property to its original condition – even if you’ve improved it. These costs can run into the tens of thousands if you’re not careful.
How to avoid it:
We review your lease thoroughly, advise on negotiating limitations to your dilapidation liability, and recommend a photographic Schedule of Condition before you move in. That way, you’ve got evidence of what the space really looked like on day one.
4. Legal & Professional Fees (Yours… and Theirs!)
The trap:
You’ve budgeted for your own solicitor and surveyor – but did you know some leases ask you to cover the landlord’s legal or agent fees too?
How to avoid it:
We’ll highlight these clauses before you sign anything and push back where appropriate. Your budget should support your business, not fund someone else’s.
5. Planning and Licensing Hurdles
The trap:
You find the perfect space… only to discover you can’t use it the way you’d hoped due to planning restrictions or missing licenses.
How to avoid it:
We carry out early due diligence, liaise with local authorities, and flag any potential issues upfront. No nasty surprises, no last-minute scrambles.
6. Break Clauses That Break the Bank
The trap:
Some leases include break clauses that allow early exit – but only if strict (and sometimes unrealistic) conditions are met. Miss one small requirement, and you’re locked in for years.
How to avoid it:
We don’t just check if a break clause exists – we examine how it works, and whether it’s actually usable. If not, we help renegotiate terms that work for you.
The Bottom Line?
There’s no such thing as a “simple” commercial property deal – and that’s OK. The key is knowing what to look for and having the right team beside you to ask the right questions, at the right time.
At McHale & Co, we help clients spot the pitfalls before they turn into problems. Whether you’re signing your first lease or buying your tenth building, we’ll make sure you’re fully informed and fully protected.
Want a second opinion on a lease or property deal?
Let’s talk. We offer straightforward advice, flexible communication (email, phone, or a face-to-face chat), and a “nothing is impossible” approach.
Contact our Real Estate team today on 0161 928 3848 or email mch@mchaleandco.co.uk
