OLD – Commercial Schedules of Condition

When considering a lease of a commercial property, it is important for a prospective tenant to understand that dependent upon the terms of a lease a landlord can seek to make a claim at the end of a lease for items of disrepair or unauthorised alteration, including any items of disrepair that may exist before the lease is taken.

This is known as a dilapidations claim and can run into thousands of pounds at a time when an organisation may need capital and time to focus on the next stage of their business plan.

Unlike a Commercial Building Survey, a Commercial Schedule of Condition is not a diagnostic report intended to be a detailed evaluation as to the defects, remedial works and future maintenance issues. It is a written tabulated schedule that sets out the condition of the building element by element, area by area and is accompanied by comprehensive photographs and is used as a benchmark of the condition at the time a lease is taken. The value of this is in providing documentary evidence of the condition at the start of the lease.

For a Landlord who has invested in bringing a property into good tenantable condition prior to letting, with a tenant that has not maintained the building, it will help you to justify and resolve a claim for dilapidations at the end of the lease. This can save time and money in resolving alleged disrepair and associated legal fees.

This is essential for you as a prospective tenant who will have a liability to hand the building back in its original condition at the end of the lease term. It will help limit and resolve issues of liability for alleged disrepair or alterations at lease end. Again, saving time and money. With input from your solicitor it is advisable to seek to negotiate that the schedule be appended to the lease with a clause that requires that the building be handed back in no better condition than as set out in the schedule.

A Commercial Schedule of Condition can be carried out instead of a Commercial Building Survey or, where the benefit of both is relevant, they can be carried out in tandem.

If you are the current owner of a commercial property, or are proposing to purchase or enter into a lease, and need advice with recommendations in respect of the condition of a commercial building please contact us today for a quotation.

You can get an idea of how useful our clients have found our survey reports to be by viewing some of their comments on our Trustpilot reviews page.

RELATED BLOG POSTS

Written or Photographic Schedule of Condition?

While the current social distance regulations remain in place, surveyors are under pressure to spend as little time inside occupied properties as possible. One way of doing that is to rely upon a photographic only schedule of condition instead of the traditional written record but can it ever be as useful?Prior to the ... Read More >>

Additional Storeys and The Party Wall Act

An amendment to the General Permitted Development Order which allows property owners to add up to 2 further storeys to their property without planning consent came in to force on 30th December 2020. So does this mean we’re going to see houses all over London being extended upwards despite how incongruous such an extension may ... Read More >>

Proposed Leasehold Reform: Opportunities for negotiation

It is over a month since the Housing Secretary's announcement on Leasehold Reform. We wrote are response shortly after and have been advising numerous clients, new and existing on what this means for them.Our pithy answer is "there is great opportunity but it all depend on your personal circumstances". The vast majority of ... Read More >>

read more posts
Call Now Button