Consider a Schedule of Condition when leasing a new Commercial Property

08/01/2009

As a tenant taking a lease on a commercial property, future dilapidations is probably not an issue uppermost on your mind but it would be wise to agree a Schedule of Condition with the landlord and have this attached to your impending lease. With such a schedule you will be able to restrict your repairing liability at the end of the lease as you will only be obligated to return the property to the landlord in ‘no worse condition than evidenced in the Schedule of Condition’.

“The cost of preparing such a schedule is minor compared with the potential dilapidation claims that could result at the end of a lease, particularly if it is a lease of 10 years or more”, says Paul Dudley-Smith, head of Building Design & Surveying at Milton Keynes-based property consultants Aitchison Raffety. “Typically, unless the property is very large, fees will be under £1,000 and probably average £600-700. “

He advises that it is important to ensure that fee proposals are sought from Chartered Building Surveyors who have the expertise to understand potential repairing liability in the context of a dilapidations claim and are therefore competent in drafting Schedules of Condition to provide the appropriate level of protection.

Although the current trend is towards shorter leases Dudley-Smith still recommends obtaining a Schedule of Condition at the commencement of the lease particularly for older properties. “A good schedule with plenty of photographic evidence can give you bargaining power at the end of the lease” he says. “It is there to protect your interest. For example if the carpet is worn or there is a rotten window frame prior to your occupation it is unlikely you will have to repair these unless there has been significant deterioration.”

For further advice of Schedules of Condition contact Paul Dudley-Smith by email:

Paul.dudleysmith@argroup.co.uk , go online at: www.argroup.co.uk or contact your local Aitchison Raffety office 01908 608002).