Commercial Services

A tenancy agreement often includes an obligation on a tenant to keep a premises in a defined standard of repair. Landlords can serve a Schedule of Dilapidations on a tenant, usually at the end of their tenancy (or at pre determined stages within longer Lease Terms), and this identifies any areas where the Tenant is deemed to have failed to meet the repairs obligation under the tenancy agreement. The Schedule itemises the areas where a tenant is required to reinstate the premises within a specific period or agree to a payment in lieu.

If you are acquiring a leasehold interest in a property and will occupy the premises as a tenant, then you will need to consider both on-going maintenance requirements throughout your lease term, coupled with an understanding of potential repairing liabilities, particularly upon termination of the lease agreement. A pre-let condition survey is therefore important, as failure to budget for such expenditure can often place a large, unforeseen financial burden on companies (note comments relating to dilapidation reports), and these factors are often not factored into commercial business plans.

If you are purchasing the freehold of a building, then it is important that a building survey concentrates on costs that would be necessary to keep the building performing throughout its occupation. A building survey will give you advice as to what regular maintenance would be needed and the likely Life Cycle Costs relating to these works as well as providing a detailed overview on the general structural condition of the building. If you are acquiring the freehold for investment purposes, then the purpose of the building survey report would be to assess what responsibilities, and associated financial liabilities, may fall upon you as a landlord.