Within most leases there is a requirement that the lessee or tenant repair the building. The specific clauses will confirm if this is for the interior only, or the interior and exterior. It is important to ascertain the full scope of the repairing covenants and it should be borne in mind that this includes an implied requirement to put the building into good repair before it can be so maintained.
The cash flow implications of a Schedule of Dilapidations and Repairs, served at the end of a lease, should not be underestimated.
The repairing covenants frequently fall into two sections. The decoration covenants, which are usually time specific, and the general repairing and reinstatement covenants which, subject to the building staying in a reasonable condition, are realistically only enforceable at the end of a lease.
These covenants can be modified if a Schedule is prepared at the beginning of the lease and included within its text with a reference that the building is to be kept, for example "in no better condition than that which prevailed and as recorded in the attached Schedule."
Any alterations are usually approved by the freeholder or lessor on the condition that they are removed and the building reinstated at the end of the lease. It should be noted that this may include rectifying the actual installation damage, or discolouration to ceiling tiles where, for example, partitions have been erected. If, for example, the ceiling tiles are no longer available and a match cannot be achieved, this may involve extensive replacement works.
The lessor usually employs a surveyor to prepare and serve a Schedule at the end of the lease and the lessee can employ a surveyor to contest the validity, reasonableness, extent etc., of the Schedule.
There is frequently a specific clause covering the state of repair and reinstatement which is to apply when the property is "yielded up" at the end of the lease.
If you would like to find out more about how we can help you with your requirement, please telephone us on 020 8979 6006.