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Law of property can be both a blessing or serious commitment, dependent if you are an owner or tenant subject to a lease of a building.Contact us for more information
As a LANDLORD the cost of repairs, etc. dependent upon the terms of the lease, is often the responsibility of the tenant, whether internally, externally or both. A properly prepared and served schedule of dilapidation should ensure that your building is maintained to a good standard whilst at the end of the term returned in no worse condition than at the commencement of the lease. This presents the building in a condition suitable for re-letting to the next tenant.
Costs in preparation of dilapidations are normally met by the tenant so that your interests are secured at no expense.
As a TENANT the potential for the minimising repair liability can be safeguarded by the preparatin of a Kirkham Pryer Schedule of Condition which records the condition of the building prior to agreeing the lease. This limits the extent of disrepair, returning the building in no better condition than at the time of commercial of the lease, reducing the scope of dilapidations.
A schedule of dilapidation, documents the items of repair which the landlord believes are in need of remedy in accordance with the terms of the agreed lease. There are three main inspections we can undertake:
- An Interim Schedule (Repairs Notice) can be undertaken and served during the term of the lease. This is often carried out in order to give the tenant the opportunity to resolve any breaches before the defects & necessary works escalate.
- A Terminal Schedule is served on the tenant within the last three years of the end of the lease. This gives the tenant early warning regarding any potential breaches of the lease. It may be that completing the works, is less financially onerus than settling a claim for financial compensation once the lease has terminated.
- A Final Schedule is served once the lease has terminated. There may be similar items as the interim and terminal schedule, however the tenant will not have the option of completing the works themselves, once their right of occupation has come to an end.
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If we are asked to be involved with any areas of dilapidation, we require a copy of the lease between both parties. Prior to carrying out an inspection at the property, we will study the terms of the lease to best establish respective liabilities etc.
Given the knowledge which has built up over the years, we can also advise you as a prospective tenant the condition and potential maintenance issues relating to a property prior to taking on a contract and signing a lease.
When taking a lease on a commercial property in the UK, the in going tenant may wish to instruct a surveyor to undertake a schedule of condition. This documents the condition of the property at the start of the lease, helping to limit the liability imposed on the tenant during and towards the end of the term. When any schedules are served throughout the lease term, should the tenant wish to contest any parts of the served document, they have photographic evidence to help with this.
As most commercial properties are let on a full repairing & insuring (FRI) lease, new tenants can find themselves responsible not only for maintaining the majority of the premises, but also ‘putting’ into good condition. Schedules of condition will help to minimise any requested work which could potentially see the property being put back to a better condition than at the start of the lease.
Where no schedule of condition exists, the issue of a dilapidation schedule requires professional consideration and negotiation with the landlord’s representatives to ensure that works of disrepair specified are enforceable and in accordance with the terms of the lease. Kirkham Pryer regularly negotiates on behalf of tenants, often resulting in considerable reduction of repair liability.