A commercial lease will set out the contract terms between the Landlord & Tenant and will include obligations relating to the repair, redecoration and alteration of the premises. If you fail to comply with the lease covenants during or more commonly at the end of the lease term this will result in a dilapidations liability.
When acquiring your property it is essential you carefully consider and budget for your exit liabilities. It is important to establish the works required in order to comply with the lease terms and either undertake repairs, redecoration or negotiate the level of the resulting damages. Providing a detailed schedule of condition at the outset can protect both parties’ interests. From a tenants point of view it is important to limit the claim on expiry of the lease.
We are able to advise and negotiate any stage of your dilapidations strategy.