Most leases will have a tenant obligation to keep premises in good and substantial repair and condition and to return them in that state at the end of the term.
This obligation is hardly ever complied with by tenants.
At the end of the term, there will inevitably be a battle over dilapidations (i.e. what is the cost to the landlord of putting the premises into the condition required by the lease?).
Landlords may not always be pro-active in seeking to agree a figure, tending to rely on their rights under the lease to claim dilapidations after the lease has come to an end.
This creates significant cost and budgeting uncertainty for the tenant, particularly where the termination of the existing lease coincides with a move to new premises.
Be pro-active:-
o Invite the landlord to submit a dilapidations assessment at least six months before the end of the lease.
o If not forthcoming, instruct a surveyor to assess the dilapidations cost on your behalf.
o Submit that assessment to the landlord, inviting it to agree the position and setting out a proposed timetable of works.
o If still no response, confirm to the landlord that you will carry out the works and, once the works are complete, invite the landlord again to approve them.
If the above steps are followed, the landlord is in a much weaker position legally, should it decide to submit a dilapidations claim after the end of the term.
For further advice on this or any Commercial Property query please contact our Commercial Property Team
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