Professional advice should always be sought prior to leasing a residential, commercial or industrial property. This is "advice that pays" in avoiding costly mistakes.
Prior to signing a new lease it is essential to fully understand the requirements of the repairing covenants and the financial implications of not complying with them.
Currently there are two main variations of Leases on the market, these are:-
- Fully repairing and insuring (usually for periods in excess of 5 years).
- Leave in no better, no worse condition (usually for periods up to 5 years and limited to a Schedule of Condition which is attached to the Lease.
So as to minimise the exposure when considering Option 1 above, Kirkby & Diamond Chartered Surveyors would recommend that a Pre Acquisition Survey of the property is commissioned, including the Mechanical and Electrical Installations. This document will assist with negotiations.
So as to minimise the exposure when considering Option 2 above, it is recommended that a Schedule of Condition of the property is commissioned, including the Mechanical and Electrical Installations.
To assist the occupier in planning for repair and redecoration expenditure over the term of the lease the appointed surveyor will prepare a maintenance plan.
When approaching the end of the term the Landlord’s surveyor will no doubt visit to prepare a Terminal Schedule of Dilapidations, or in other words a list of items where it is felt that the occupier has not met with their covenants etc. Kirkby & Diamond will be pleased to assist with a review of the Schedule of Dilapidations, which will lead to the minimising of financial exposure in a settlement.
Whatever the requirement clients can rest assured of the professional, quality service provided by Kirkby & Diamond Chartered Surveyors, members of the RICS Dilapidation Forum.