15 Feb 2012: Commercial leases

The wrong covenant, or employing the wrong professional adviser, can cost a landlord or tenant many thousands of pounds in unexpected repair and decoration costs.

When entering into a commercial lease, landlords and tenants need to pay close attention to the lease and what their obligations will be in relation to repairing and decorating the premises, throughout and at the end of the term.  Getting the right advice and employing the right professionals may save you many thousands of pounds.

The wording of the lease will have a major effect on the extent of repair work that the Tenant will be obliged to carry out.  For example, if the repairing lease is simply to “repair”, then the Tenant will not usually be obliged to put the property into better condition than at the start of the lease, or to remedy a pre-existing defect.

If, however, the wording of the lease is something like “amend and renew”, or “put and keep in repair”, then the liability may extend far beyond that anticipated by the Tenant.

You need to speak to an experienced solicitor to advise on the wording of the lease, and also a Chartered Building Surveyor to advise on the existing condition of the building and your likely repairing obligations at the end of the lease.

It could save you tens of thousands of pounds.

For free advice and information please click on the links or contact us on 01202 237377 or info@sutherlandsurveyors.co.uk.

 

Daniel Sutherland