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Landlord & Tenant Services

Nock Deighton offer a wide range of landlord and tenant services including Schedules, Rent Reviews and Lease Renewals

It is vital that you understand your liabilities before signing your lease. Under a full repairing and insuring lease, the tenant is liable for all external and internal repairs required to keep or put the premises in good condition. Effectively, you may be required to leave the premises in a better condition than they were in when you took them on.

A Schedule of Condition identifies existing and potential defects and the repair costs. It can be used to negotiate the repair of existing defects with your landlord and limit your liabilities to future deterioration only.

Providing you maintain the property in accordance with the terms of your lease, a Schedule of Condition will pay for itself when you vacate the premises.

Instruct Nock Deighton Professional Services to carry out a Schedule of Condition and we will undertake:-

  • A full appraisal of all relevant documentation including the lease
  • A site inspection to include photographic evidence
  • Preparation of a thorough Schedule of Condition
  • Negotiation, where appropriate, with the landlord to limit future liabilities

At the end of your lease, you will require a Schedule of Dilapidation to counter any claims made by your landlord.

Rent reviews are a way of periodically adjusting rents to 'Market Values'.

The Rent Review clause in a lease will direct how and when the rent should be reviewed. This is usually by reference to a hypothetical letting of the subject property, having regard to market rents paid for comparable properties let at or close to the rent review date.

Whether landlord or tentant, you should start considering your rent review strategy 18 months before the review date stated in the lease.

Instruct Nock Deighton Professional Services to act on your behalf and we will:-

  • Carry out a site inspection
  • Measure the correct floor area in accordance with the RICS measuring code
  • Appraise the lease and any other relevant documents
  • Use our intimate knowledge of the commercial rental market in Shropshire to carry out market research and analysis of comparable rental evidence
  • Enter into negotiations with the tenant/landlord and their agent

Every effort will be made to reach a settlement, but where necessary, we have the credentials to put the matter before independent experts, arbitrators or employ alternative methods of dispute resolution.

Under the Landlord & Tenant Act 1954, commercial tenants may not be evicted simply by the giving of notice to quit or by the ending of a fixed term of the tenancy.

The landlord must serve on the tenant a notice of no less than six months in a prescribed form expiring on or after the termination of the lease. This notice must indicate whether the landlord will or will not object to an application to the court for a new lease and if there is an objection, they must state the grounds. The landlord can oppose renewal on a limited number of statutory grounds, the most common of which are:-

  • Where the landlord wants to occupy or redevelop the property
  • Where the tenant has committed a serious breach of lease terms
  • Where the lease has been contracted out of the security of tenure provisions of the Landlord & Tenant Act 1954.

Providing the tenant follows the correct procedure and answers the notice within the specified time period, they have a right to apply to the Professional Arbitration on Court Terms (PACT) Scheme or to the court.

Presenting a case to an arbitrator or independent expert without a Chartered Surveyor experienced in legal representation is a risk which we would strongly advise against.

Once new terms are agreed, the landlord's solicitor will draw up a new lease and submit it to the tenant's solicitor for approval. The tenant's solicitor may seek to amend the terms. The tenant is not tied to the new lease until it is signed. Should the tenant on reflection wish to vacate the property, they must give the landlord the appropriate notice.

Instruct Nock Deighton Chartered Surveyors to ensure that the correct procedures are followed and your interest will be protected.

A Schedule of Dilapidation is a list of breaches of a tenant's covenant to repair a commercial property under the terms of their lease.

A landlord may serve a Schedule of Dilapidation on the tenant at different stages of the tenancy:-

  • A schedule served during the fixed term of a lease is known as an interim schedule
  • A schedule served within the last three years of the term is a terminal schedule
  • A schedule served at or after the end of a lease term is a final schedule of dilapidation

An interim or terminal schedule will specify both the disrepair alleged by the landlord and the remedial works which the landlord requires the tenant to undertake.

The difference with a final schedule is that whilst it contains the same alleged breaches of covenant and details of remedial work required, here the tenant will not have an option to carry out the works themselves since their right of occupation has ceased.

With final schedule, therefore, the remedy for the landlord is to claim for damages which will cover the cost of remedial works, AND loss of rent, service charges, rates, professional fees and VAT for any period during which the property is off the lettings market.

The tenant may dispute part of or the entire schedule, particularly if the lease is subject to a Schedule of Condition. In the event that the landlord intends to refurbish or redevelop the property, then special rules apply which could affect the tenant's liability. There is also a limit to a landlord's claim which should reflect the reduction in value of the landlord's interest.

Surveyors acting for both parties will negotiate and agree the extent of the remedial work to be carried out. If the tenant does not carry out the remedial work, the landlord can sue the tenant for breach of covenant.

Instruct Nock Deighton Professional Services Department to carry out a Schedule of Dilapidation and we will undertake:-

  • A full appraisal of all relevant documentation including the lease, licence to alter and Schedule of Condition
  • A site inspection to include photographic evidence
  • Preparation of a thorough Schedule of Dilapidation to include lease terms, alleged breach, necessary remedial works and costs
  • Arrangement of a service of the Schedule of Dilapidation to the tenant
  • An objective and straight talking approach in negotiations with tenant's representatives to achieve settlement or monitoring of repairs
  • Work with your solicitor and, where necessary, give evidence in court

There are some practical steps that tenants can take to limit dilapidations liability.

Prior to commencement of the lease:-

Instruct Nock Deighton Professional Services Department to carry out a Building Survey or Schedule of Condition to establish the present condition of the property and negotiate with the landlord a limitation of repairing liability.

When served a Schedule of Dilapidation:-

Instruct Nock Deighton Professional Services Department to:-

  • Carry out a full appraisal of all relevant documentation including the lease, licence to alter and Schedule of Condition
  • Carry out a site inspection
  • Determine whether the Schedule of Dilapidation is accurate
  • Determine whether the standard of remedial works is justified
  • Determine whether any appropriate statutory reliefs may be applied
  • Determine whether it would be more economic to organise the remedial works or pay damages
  • Take an objective and straight talking approach in negotiations with the landlord's representatives to achieve settlement or monitoring or repairs
  • Work with your solicitor and, where necessary, give evidence in court

Key Contacts

David Perrin

Survey Department

01952 208745

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