Buying or renting a commercial property? You need a survey

A survey on a property conducted by a tenant entering into a new lease or assignment is too often seen as optional. The way that risk is now balanced in commercial leases means that it is essential that all incoming tenants have a survey carried out.

One reason is that many tenants entering into leases do not understand the full extent of the obligations associated with phrases such as ‘to keep in repair’ and find themselves paying for work far beyond what they expected.

A survey by an experienced professional will produce a comprehensive record of the physical state of the property at the start of the term and a schedule of condition can be produced which can be referred back to so as to limit the repair obligation at the end of the term. An experienced surveyor may also be able to warn an incoming tenant of potential future costs of maintenance and the obligations attached to the proposed lease. This information can be invaluable in allowing the tenant to negotiate with the landlord in respect of both the obligations under the lease and any work on the property.

At present those looking to enter into leases and take assignments are in a strong negotiating position. A survey is a negotiating tool which should be used to obtain the best deal possible. A survey is also a means by which a lease or assignment can be made as transparent as possible. It is therefore money well spent for anyone entering into a new contract, particularly when compared to the costs that could be involved should a dispute about dilapidations and who has responsibility for repairing what arise during or at the end of the lease.

For further information please email Richard Willis or contact him be telephone 01908 692769.