The market for garden and home offices has exploded since March. One supplier we have just spoken to has stopped all advertising, they cannot keep up with demand and are busily recruiting new installers.
Garden office pods – as these home offices are typically referred to – is the latest must have for business owners. Even though available on Google from £3,000.00 + VAT, many business owners are spending between £20,000 and £40,000, and some buildings costing as much as £75,000. Kitchens, bathrooms, a meeting room and office space are a prerequisite for companies with a small team of people.
Two key questions are being asked: Who pays and how are they financed?
Who pays? – is this an asset financed in a personal capacity or paid for by a company? It seems that there is a mixture of both. Buying in a company name is a legitimate business expense, even though they are located at the home of the business owner.
How? – Individuals and companies have been paying for garden office pods as a cash purchase.
Garden office pod finance and leasing
However, things are changing. It is now possible to lease a garden office pod for business use. There are some really good benefits to this:
- The company can reclaim the VAT on rentals
- Leasing a garden pod ensures you can get full tax relief on all the rentals, over the three or five year lease term you can fully amortise the cost of the building
- You pay for the garden chalet as you use it, the same as you would do paying rent for an office
- You do not have to fund the cost by cash upfront
How leasing and finance is helping people buy a garden office pod
The key issue why companies are not looking at a garden office is normally due to the fact they cannot fund the £10,000 to £75,000 cost out of cash flow. Leasing overcomes this issue.
As an example, a £25,000+VAT building would cost about £550 +VAT per month over five years. Significantly less than paying a third-party company rent, rates and service charges, as well as time and travel expenses. The fact that all companies will look to take ownership at the end of the lease period is a key factor.
Can you lease an office pod for a private individual?
No, leasing is only available to companies. Private individuals would have to use their own money or take out a personal loan / extension to a mortgage.
Can you lease a garden office pod even though you have another office / warehouse / factory?
Yes, we are leasing office pods to companies where the director(s) wish to work from home a few days per week.
How does the process of leasing an office garden pod work?
You choose the supplier and office pod design.
You would still need to ensure you have all the correct planning applications – if appropriate – in place. It may be such there are restrictions on you or your colleagues working from the home environment.
We then take the supplier quote and will provide you with a leasing quote.
We arrange for the leasing credit to be put in place and send you lease paperwork.
The supplier then installs the building, they will require a deposit which will be refunded to you when the lease agreement goes live at the point of completion.
Our funder will pay the supplier invoice and then you make a regular monthly lease repayment, normally over three to five years depending on your budget.
Overall, it is a very simple process.
Who will finance or arrange leasing on a garden office pod?
We do. Please call WestWon on 01494 611 456 for more information and a formal lease quote.