news/legal expert 11
Tenants need to take repairing liabilities very seriously
It is not unusual for commercial tenants to enter into leases of properties that are not in a perfect state of repair. However, tenants must appreciate that they may become liable for all existing defects and damage as soon as their tenancy begins, writes Akbar Shah of Glanvilles Legal Services
Prospective tenants may not be aware of physical defects at a particular property or may be prepared to accept existing damage in exchange for, for example, a rent-free period. However, commercial tenants should be warned against entering into full repairing leases unless they are completely satisfied as to the state of the property in question. A usual repairing clause will require a tenant to keep a property in a good state of repair and condition. This means that a tenant will, as soon as they complete their lease, become liable for all existing defects and damage at the property.
Landlords can inspect properties and require a tenant to repair
the duration of the lease term. Then, at the end of the lease, the tenant is served with a schedule of dilapidations and suddenly faces a significant bill. Tenants must consider repairing liabilities at the start of a lease to ensure that they are protected at the end of it.
To avoid incurring such a liability, a tenant should have the property appraised by a surveyor to ensure any defects are brought to their attention. Alternatively, a tenant may have its repairing obligations limited within the lease itself.
This can be done by
any damages or defects to a property during the lease term. However, it is quite common for a tenant not to be affected at all by their repairing obligations for
Court ruling is bad news for small residential developers
The courts have delivered a blow to small residential developers, potentially making schemes of up to 10 homes economically unviable. The decision will particularly affect urban residential development and small rural sites, says law firm Coffin Mew.
The decision, delivered on July 31, relates to the exemption small residential developers have previously had from contributions towards affordable housing. The exemption was introduced by the Government to encourage residential developers to bring forward smaller housing schemes and to redevelop compact urban and rural spaces to help meet the chronic housing shortage.
Two local authorities – Reading and West Berkshire – successfully challenged this exemption, arguing that it would have a negative effect on affordable housing numbers.
Nick Leavey, partner and head of commercial property at Coffin Mew, said: ”This decision is a major blow for smaller residential developers
looking to bring forward schemes in urban environments.
”The economic viability of small schemes is often on a knife-edge, and this decision is likely to pull the rug from underneath those difficult-to-develop sites. It is also likely to have a negative effect on land values for future deals, further exacerbating the housing crisis in the South East. Nobody wins from this decision.”
Promotion and progression
Coffin Mew has promoted Heather Dobson, Tina Day and Ian Peach to the newly-created role of senior associate and Hedley Winter to associate director, recognising the significant contribution they are making to the insolvency and recovery; family; conveyancing; and new homes teams respectively.
This follows another year of significant growth across the firm – with two partner promotions, four associate level promotions, new joiners in key strategic roles and the launch of the Brighton office.
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – SEPTEMBER 2015 The Business Generic
2015.indd 1
Understanding business, understanding you
Glanvilles business & commercial services are structured to meet the ever-changing needs of today’s business organisations.
Our professionals will provide you with practical and straightforward advice, tailored to meet your business objectives. We offer an effective and efficient service combined with a friendly and open approach.
We have offices in Chichester, Fareham, Havant and the Isle of Wight.
attaching a ’schedule of condition’ to the lease which shows the condition of the property at the start of the lease term. The tenant’s repairing obligation
is then limited to putting the property in no better state or condition than shown in the schedule of condition.
A schedule of condition can take the form of a written report, a series of photographs or even a video walk-through of the property.
Solicitors will do their best to protect tenant clients and ensure that their repairing obligations are limited. But tenants can help themselves by having a professional investigate the condition of the property early in the process or by demanding a schedule of condition be attached to the lease when negotiating heads of terms.
Details: Akbar Shah
akbar.shah@
glanvilles.co.uk www.glanvilles.co.uk
Chichester
Southgate Place 41-42 Southgate Chichester PO19 1ET
United Kingdom
T | (01243) 792102 F | (01243) 538022
Fareham
West Wing Cams Hall Fareham PO16 8AB
United Kingdom
T | (01329) 282841 F | (01329) 822052
Havant
Langstone Gate Solent Road Havant PO9 1TR
United Kingdom
T | (023) 9249 2300 F | (023) 9249 2361
Newport
The Courtyard St Cross Business Park Newport Isle of Wight PO30 5BF
United Kingdom
T | (01983) 527878 F | (01983) 821629
www.glanvilles.co.uk |
hello@glanvilles.co.uk
www.businessmag.co.uk 13/08/2015 14:10
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44