What does VAR mean?

Industrial unit rental

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A client is looking at an industrial unit to rent and has been told there is an annual £5,000 VAR payment on top of the rent. Can't get hold of the agent yet to find out but has anyone else come across this? and what does it mean?

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By bernard michael
01st Mar 2017 16:34

I believe it stands for Value at Risk, which is equated to the return a landlord expects to receive.The relevance in your case I don't know but it equals another £5000 your client is being asked to pay so it needs explaining. Come back and tell us the answer

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Replying to bernard michael:
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By jaffe123
01st Mar 2017 19:36

Will let you know soon as I find out

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paddle steamer
By DJKL
01st Mar 2017 16:36

No idea as never seen term, could it relate to some form of estate service charge?

I do one set of leases where the service charge is a fixed percentage of the rent, irrespective of landlord spend.

I have also seen service charges where there is a provisional fixed amount and then an annual adjustment-additional/refund.

Afraid asking agent is best bet.

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By Wanderer
01st Mar 2017 19:29

VAT?
R is next to T on a keyboard.

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Replying to Wanderer:
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By jaffe123
01st Mar 2017 19:37

Not VAT.
Definitely VAR set at £5,000 per year for the length of the lease.

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By Tim Vane
01st Mar 2017 19:40

Something to do with Vehicular Access? (Had a client once who had to pay toward the upkeep of the road to the unit, but no idea what the payment was called).

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