Businesses who lease their property and are looking to relocate often overlook the ‘hidden’ costs that may be associated with moving to alternative premises.
Irrespective of whether they are increasing in size or down-sizing, it is important that any costs associated with ‘dilapidations’ are given consideration to ensure that such a move is financially viable. In simple terms, this is the cost to return the property to its optimum state of repair and decoration in order to comply with the terms of the lease and recover any deposits / bonds.
Tenant failure to undertake “repairs” and abide by lease covenants is very often an area of contention between a Landlord and Tenant, throughout and at the end of a lease. Stockport based Fairhurst Estates Ltd services include the provision of professional dilapidation advice specifically tailored for the occupier.
Dilapidations protocols were introduced in the late 1990’s and intended to benefit both the Landlord and the Tenant, to reduce spurious claims and to assist in agreeing any settlement, without Court Proceedings. More recently a Pre-Action Protocol came into force to also address dilapidations at the end of a lease.
The full article can be accessed here
A final point on dilapidations mitigation – if businesses take professional advice at the outset, i.e. before you sign up and commit to a lease, you can limit the future liabilities and costs of dilapidations.
This advice can be in the form of pre-acquisition surveys, photographic schedules of conditions and advice on lease clauses.
If you are contemplating a relocation, Fairhurst Estates can give you advice in these important areas.
Pictured left to right: Nigel Blyth, John Thornley, Howard Derbyshire
Please feel free to call or email either Nigel Blyth, John Thornley or Howard Derbyshire for further information and advice.
John Thornley – Managing Director john.thornley@fairhurst-estates.co.uk
Nigel Blyth – Estates Director nigel.blyth@fairhurst-estates.co.uk
Howard Derbyshire – Building Director howard.derbyshire@fairhurst-estates.co.uk