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?
Replies (6)
Please login or register to join the discussion.
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
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.
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).