Find out how much you could save by filling out our custom de-rating calculator.
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FIRST DEMOLITION SERVICES
De-Rating Calculator
Frequently asked questions
A: De-rating refers to works carried out to a property to render it incapable of beneficial occupation, with the aim of removing or reducing its business rates liability. This is typically achieved through a targeted strip-out of key elements such as services, finishes and facilities.
A: This depends on the building and the intended use, but the principle is consistent: the property must no longer be capable of occupation in its current form. We work with clients and their advisors to ensure the scope of works aligns with the level required to support a successful de-rating position.
A: Yes. While formal rating advice typically sits with specialist consultants, we bring practical experience of what has been required on previous schemes and how works are assessed in reality. We help translate that into a clear, deliverable scope on site. We have also worked with several different ratings surveyors and can assist you with their appointment and handle the liaison and documentation throughout the process.
A: Yes. In many cases, de-rating works form part of a wider strategy for refurbishment or redevelopment. We plan works in a way that achieves the immediate objective, while also considering how the building will be taken forward. This often means leaving the mechanical service infrastructure in tact.
A: Absolutely, many of our de-rating projects are partial occupation only. If floors or demises within floors are adequately separated, landlords can apply for rates relief for their specific areas. Equally, on multi-floor projects, they can apply for rates relief as the floors complete, meaning they are not waiting for the completion of the whole project before they achieve any savings.
A: In Central London, business rates on commercial property can easily get up to around £40 per square foot per annum. This is paid by landlords irrespective of whether their spaces are tenanted (except for short periods of rates relief). De-rating strip out costs will be capped at £5 per square foot and are often less than that. As a rule of thumb, it is common that stripping out for rates relief shows global savings after 6-8 weeks, and the savings compound the longer the space is set to be vacant. Over the course of a year, on a 10,000ft2 office space in Central London, we would expect savings of £350,000.
A: If you have a lease-end or a tenant has suddenly vacated your property, you have three months to act. If the space is new and likely to be attractive to a new tenant in its current form, you can wait it out. If however, there is anything dated about the installation or you feel that any tenant would want to see major upgrades in the CAT A infrastructure, then it is best to act now. When refurbishment is inevitable, the early strip out for rates relief provides pure saving to the overall process without jeopardizing future works.
