Five key elements of Health & Safety Compliance when surveying a building

Five key elements of Health & Safety Compliance when surveying a building

 

Compliance with health & safety legislation is vital to ensure a safe workplace. If you’re a commercial landlord or a prospective tenant, you may be surprised to learn that your building surveyor will be putting health & safety issues at the top of their survey checklist. We take a look at the five most important elements they’ll be on the lookout for.

Fire risks

We all know that fire kills but there are some simple steps to help prevent fires starting. Building surveyors will be looking to conduct a Fire Risk Assessment which will firstly identify the potential for a fire to occur and secondly the scale of the consequences of such a fire. The surveyor will look for what preventative measures you have in place in your commercial building which can reduce the risk of fires starting in the first instance. This will comprise identifying fire hazards and anyone at risk, identifying whether fire alarm systems are in place and establishing whether signage is adequate.

Public health

A natural, fibrous rock asbestos was formerly widely used to insulate and fire-proof buildings. In 1999 it was banned after links were established between it and potentially fatal lung diseases. Surveyors must pay particular attention to the suspected presence of asbestos in older buildings due to the serious nature of the threat it poses when inhaled, particularly during removal. Its presence may also have implications for the insurance of commercial buildings.

A building surveyor will also be on the lookout for the potential for Legionnaire’s Disease – a lung infection which is spread through water droplets in air conditioning systems. Of particular concern will be any cooling towers or evaporative condensers, dry/wet cooling systems, and hot and cold water systems.

Energy conservation

It is estimated that commercial premises in the UK are responsible for 10% of the greenhouse gases our country emits. This is not only bad for the planet, but bad for commercial landlords’ and tenants’ bottom line too – there is thought to be the potential to collectively save up to £1.6 billion annually with energy efficient practices. A surveyor will note if a building has sufficient wall and roof insulation, whether the windows are energy efficient and whether the space is adequately air tight, in order to assist in the choices landlords and tenants can make.

Accessibility

The Equality Act 2010 set out the rights of people with disabilities, which include the provision for equal access in places such as shops and cafés, and when renting land and property. Employers are required to make ‘reasonable adjustments’ to ensure that disabled people can access the same services as non-disabled people. Of particular interest to commercial building surveyors will be the provision of access into a building, whether there is specific car parking allocation for disabled people, if the floor surface is suitable, whether there are ramps or handrails, if doors are wide enough to accommodate a person in a wheelchair, etc.

Gas and electric

Whether you’re investing in commercial property directly or are leasing premises from a landlord, the safe and efficient provision of a gas and/or electric supply will be fundamental to your business. A surveyor will, therefore, establish whether such services are provided to the premises.

The professional body for commercial building surveyors, RICS (The Royal Institution of Chartered Surveyors) takes Health & Safety very seriously, both for its members and for the customers they serve. The rules and regulations are there to ensure the safety and well-being of everyone who deals with commercial property, in whatever respect. If you need guidance or advice on any aspect of a commercial building survey, get in touch with one of our professional and highly-qualified RICS members.

 

Written by: Joseph Fitzsimmons on Wednesday 03/08/2016

 

Bradford commercial property market on the up as property agent Eddisons reports increase in deals

Bradford commercial property market on the up as property agent Eddisons reports increase in deals

 

Property consultant Eddisons has reported an increase in property transactions in Bradford in the four months to July, with a string of sales and lettings a sign that the city’s economy is rallying.

John Padgett, Director at Eddisons, said: “This has been a particularly busy four months for us and the number and wide variety of property deals that we have been involved in this spring and summer is a tremendously encouraging indicator of Bradford’s increasing economic success.”

Deals carried out by the firm include lettings at the Link 606 business park, where Eddisons provided Preston-based construction group Eric Wright with 2,400 sq ft of office space as a base to fulfil a contract for Yorkshire Water. Eric Wright has committed to a nine-year lease off an asking rent of £12.50 per sq ft. Eddisons has also let a further suite of 1,000 sq ft at the business park.

In the city centre, the firm has let a 1,500 sq ft suite of offices at the Grade II listed Kenburgh House, built by Titus Salt in the 19th century, to national charity Lifeline off a headline level of £8 per sq ft. The charity plans to open a community wellbeing centre in the building. Terms have also been agreed to lease a full floor of offices in the property to the NHS.

Down the road at Cheapside Chambers, contracts have also been exchanged on the upper floors of the landmark city centre building, which is being converted to residential use under the new office-to-residential permitted development rights.

Other deals completed by Eddisons in Bradford since the end of March this year include the sale of Skipton Chambers on North Parade to Leeds-based BLG Property off an asking price of £255,000, and the lease of warehousing at unit 10, Lister Street to plastic building products supplier Pearl Plastics. Both deals were carried out on behalf of landlord Wharfedale Finance.

At Mitre Court on Cutler Heights Lane, the firm has let two units and has now been instructed to sell the trade counter/warehouse space as an investment. Eddisons has also acted as joint agent with Cushman Wakefield, letting a unit at Wakefield Road Trade Park on behalf of warehousing specialist Industrious, and with Hayfield Robinson to let two units at Marley Street in Keighley for Marrtree Investments.

Meanwhile two units of 6,000 and 4,000 sq ft are about to complete at Pitcliffe way Industrial Estate.

Mr Padgett added: “Investment in the city, with projects such as the Broadway Centre helping to increase confidence, is really starting to pay off and the much talked about ‘Westfield effect’ is becoming a reality.”

 

Written by: John Padgett on Tuesday 02/08/2016

 

What is a chattel mortgage over machinery, plant and equipment?

What is a chattel mortgage over machinery, plant and equipment?

 

In Shakespeare’s The Taming of the Shrew, Kate is described by Petruchio as “my goods, my chattels”. These days, thanks to the Married Women’s Property Acts (1870, 1882 and 1893) women are no longer regarded as property, but how can this archaic word assist business people in the 21st century. We find out more about chattel mortgages.

What is a chattel?

Chattels are defined as items of personal property which are movable and are distinct from items such as land or buildings. In a business context, this definition might include goods, furniture and other items which are capable of being moved, as well as fixtures, plant, equipment and trade machinery.

What is a chattel mortgage?

Chattel mortgages are loans which are secured by the goods themselves rather than by property, as in a traditional mortgage. In a chattel mortgage, the lender holds a ‘lien’ which enshrines their legal right to sell the items if the debtor defaults. The lien holder is the organisation which provides the loan and, at the end of the loan period, when the amount is paid in full, the lien is released.

Businesses may make use of chattel mortgages to take out a loan, for example on new machinery or commercial properties, using other chattels as security. This would allow the business owner to use the machinery or property without the added burden of a lien.

For the lender, a chattel mortgage is advantageous because, in the case of the loanee defaulting, the goods under the lien may be seized and used to pay off the debt.

Why consider a chattel mortgage?

Chattel mortgages may be considered a business transaction and, therefore, depreciation and other tax efficiencies may be claimed by taking one out. In addition, the interest rate may be lower than on an unsecured loan, saving your business money and assisting with cash flow.

If you’d like more information about a chattel mortgage and whether one is suitable for your business, talk to a member of our team. Our experts can offer you advice and information about what the best course of action is for you.

 

Written by: Tony Hirst on Tuesday 26/07/2016

 

What does a Chartered Surveyor do?

What does a Chartered Surveyor do?

 

Asking what a chartered surveyor does is a little like asking what an artist does – there are so many subtleties and variations within the profession that it’s impossible to define it precisely. At its most basic a chartered surveyor’s job involves land, property and construction. They might be asked to value property and examine buildings for structural defects; they might also offer expert advice on environmental issues and construction. We take an in-depth look at what chartered surveyors do in relation to commercial property.

RICS

Until 1999 chartered surveyors were classified by formal designations by their professional body, the Royal Institution of Chartered Surveyors (RICS). After this date, all RICS’s members were known simply as chartered surveyors, with information supplied to clients to inform them of the individual’s specialism.

All RICS members are post graduates, most having completed a degree in building surveying, and many have additional qualifications in areas such as urban and land studies, geography, science, economics or maths. RICS offers accreditation to individuals who have completed a range of construction- and property-related degrees, after which training must be undertaken before becoming a member of the organisation. This is to ensure that members of RICS hold appropriate and relevant qualifications and undertake Continuing Professional Development (CPD) which enables them to offer the most up-to-date advice to clients.

Commercial property surveyors

Surveyors who elect to work in commercial property play a vital role for both landlords and tenants as well as those purchasing or selling a commercial building. Their ‘bible’ the RICS Valuation – Professional Standards, or Red Book, lists the rules by which they must abide, guidance on best practice, and procedures for asset valuation – the most common area with which they deal. RICS commercial property surveyors are also involved in the four main areas of the sector: retail, office, industrial and leisure.

If you’re in commercial property, in whatever capacity, you will have had dealings with a commercial property surveyor. In the first instance, you may have approached them in order to establish a valuation for your property. This is a key skill and has implications for bank lending, investment opportunities, accounting and taxation issues.

Surveyors can also be appointed to deal with issues surrounding purchasing or selling a property, the management or leasing of premises (whether from a landlord’s or a tenant’s perspective) or portfolios and negotiations between landlords and tenants.

Another aspect of a surveyor’s work is dispute resolution which can encompass liaising between parties in cases of rent reviews, the renewal of leases, building contracts, disputes in planning cases, boundary disputes. RICS-qualified surveyors are often skilled negotiators and can advise on avoiding conflict and act as mediators in cases where parties cannot reach agreement.

Surveyors might also be involved with facilities management – this area deals with issues such as health and safety, property management, services and utilities.

Finally, surveyors might be asked to value machinery, equipment and business assets – this can mean anything from a computer to an HGV. This side of the role plays an important part in insurance, insolvency, compulsory purchase, accounting, taxation and market value purposes.

As you can see, a commercial chartered surveyor’s work is not simple or straightforward. They carry a heavy responsibility of professionalism and care with them in their course of work, to ensure fairness and complete transparency at all times. At Eddisons, our RICS-qualified chartered surveyors have had many years’ experience in all aspects of their profession and can offer you impartial and expert advice on all matters relating to commercial property.

 

Written by: Ian Harrington on Monday 25/07/2016

 

 

How are business rates calculated on a new commercial property?

How are business rates calculated on a new commercial property?

 

Business rates are the financial contributions made by occupiers of non-domestic properties towards the essential services and facilities provided by local council to their residents. We take a look at how business rates are calculated on all commercial properties.

What are business rates?

Until March 2013, the money received from non-domestic rates was pooled at a national level and then redistributed by the government, depending on the size of the adult population of the area. Under legislation in 2013, local councils were authorised to retain around half the business rates collected in their area, but received less in direct government assistance. This was done to incentivise the councils to improve their local economies. The collected money is re-allocated by central government to local authorities directly, through a grant system. It is central government, not councils, who set the amount of business rate which is paid.

How are business rates calculated?

All properties have a ‘rateable value’. This figure is set by the Valuation Office Agency (VOA) and represents the rental value which a commercial property would have on the open market at a given date. The next revaluation of business rates in this country will take place in 2017 and will reflect the state of the economy as of April 2015 among many other factors to establish how much business rates will rise by.

To estimate how much a tenant of a new commercial property would have to pay in business rates they would have to search for their property on the VOA’s website by postcode. This will give them the rateable value of the property in question. This figure is then multiplied by a ‘multiplier’ – the number of pence per pound that they will have to pay in business rates subject to transitional relief.

Currently the multipliers are 49.7p for Standard businesses and 48.4p for Small businesses. (Businesses which have a rateable value of under £18,000 per year are classed as Small businesses.) This figure will give them the amount they must pay in business rates before any deductions for relief.

Relief

From next year, businesses which occupy a single property with a rateable value of £12,000 or less will pay nothing in business rates. This should be an automatic process via the local council but in some circumstances tenants will have to apply for it. The government expects that currently 60,000 businesses pay no business rates because of this exemption. There is also what’s called ‘tapered’ relief on properties whose business rates are up to £15,000.

Queries

The VOA has a free help service through which tenants can query the rateable value of the properties they occupy. Details can be found on their website. The Royal Institution of Chartered Surveyors (RICS) also offers advice through their qualified Ratings Surveyors.

At Eddisons we offer advice and guidance on every aspect of business rates, from establishing how much you’ll pay to challenging a ratings decision. If you need more information on any aspect of business rates, contact a member of our team.

 

Written by: Craig Newton on Monday 25/07/2016

 

Understanding commercial rent review disputes and the Calderbank Offer

Understanding commercial rent review disputes and the Calderbank Offer

 

In the course of commercial property letting, it is sometimes inevitable that a dispute may arise regarding the rent – either from the side of the landlord or the tenant. We examine the most famous rent dispute in an effort to understand how such disagreements can be resolved.

What is a Calderbank Offer?

A Calderbank Offer is an offer made ‘without prejudice, save as to costs’ in order to settle a dispute without incurring extra costs and the possibility of a full trial. The term stems from a divorce case in 1975 in which the judge decided that in a case of litigation, where the winning party has refused an earlier settlement, the losing party may present the details of the offer as evidence towards costs.

The implications this has in commercial property rent disputes are that if the winner of such a dispute is awarded less costs than was previously offered, the losing party may be able to pay a reduced amount of costs to the winning party.

How does this affect commercial property rent review disputes?

Rent reviews can be a bone of contention between landlord and tenant. They typically take place every three to five years – historically this period of time was seven or 14 years. However, with the shorter terms of modern commercial leases, usually between 10 and 15 years, rent reviews now occur more frequently.

The rent review clause in the lease will set out when the reviews will take place and how the new figure will be arrived at, what procedure will be followed and how any disputes, if any, will be dealt with. The most common method of recalculating a commercial rent is revaluation in the open market.

The Royal Institution of Chartered Surveyors (RICS) publishes a voluntary Code for Leasing Business Premises in England and Wales which aims to promote the values of fairness and negotiating commercial leases on the basis of informed choices, for both landlords and tenants.

The review will be based on the open market value of similar properties, on similar leases, in the local area. In some cases, the lease will stipulate that the rent will be increased, ‘upwards only’ which allows the landlord to increase it by the agreed amount. However, if, during the course of his or her research, the tenant discovers that the local market value is actually lower than the increase being asked for by the landlord, negotiations may take place.

This is where the Calderbank offer is of particular relevance to commercial property. If, during the course of negotiations, a tenant makes the landlord an offer of a reduced rent via a negotiator (usually an independent surveyor), in line with local market values and this is at first refused but then later accepted by the landlord, the tenant can use the first refusal both to argue their case and to claim any subsequent costs.

Commercial rent reviews can be fraught with difficulties and create an atmosphere of anxiety and disharmony between landlord and tenant. In order to avoid such a scenario it is essential that before the tenant signs the lease it is professionally examined to ensure that the clauses are fair and reasonable for both parties.

For advice and information on any aspect of commercial rent reviews, either from the perspective of a tenant or a landlord, contact the Eddisons team. Our highly-qualified, independent RICS surveyors have extensive and current experience on a wide range of matters relating to what can be a thorny issue.

 

Written by: Steven Jones on Wednesday 13/07/2016

 

Understanding capital allowances for businesses with buildings and machinery

Understanding capital allowances for businesses with buildings and machinery

 

A sound knowledge of what expenses you can claim for can help minimise your tax liability. What’s surprising is that many businesses under-claim or don’t claim at all! We take a look at capital allowances for businesses with buildings and machinery and how a better understanding can save your business money.

What are capital allowances?

Capital allowances are a tax-efficient way of spreading the cost of certain business assets over several years. The aim of capital allowances is to allow you to claim a proportion of the cost from your taxable profits, thereby reducing your tax bill. They are, in effect, compensation for commercial depreciation which is not tax deductable.

Capital allowances are not usually available on commercial buildings themselves, but can be claimed for on their fixed contents. The UK Government offers businesses the following advice, “you can claim capital allowances when you buy assets that you keep to use in your business.” In this case assets include equipment, machinery and business vehicles, and are known collectively as plant and machinery. The list may include items such as heating systems, sanitary fittings, lifts or air conditioning systems but can also encompass computers, office equipment and furniture, printing presses, lathes or tooling machines, shop fittings, computer-aided machinery, robotic machines and even amusement park rides.

Annual Investment Allowance (AIA)

An important form of capital allowance for commercial business owners is Annual Investment Allowance (AIA). This provides tax relief at 100% on qualifying assets up to a set amount – £200,000 at the moment – for items which you have purchased during your first year of trading.

AIA has some restrictions, which means that you cannot claim for items which you have previously purchased and then move to your commercial premises. Neither can you claim for items which are leased, or which are used for business entertainment. Doors, shutters, gates, mains water and gas supplies, bridges, roads and docks are also exempt.

Writing Down Allowance (WDA)

The Writing Down Allowance (WDA) enables you to claim tax relief on a part of the value of your assets, if your outlay is greater than AIA. WDA may also be used to claim for items which do not fall under AIA. Items which are claimed under WDA must be pooled into one of three separate pools, each with different rates of tax relief, depending on whether they are ‘whole life’ assets (such as electrical or heating systems etc) or ‘short-life assets’ such as cars.

Enhanced Capital Allowances (ECA)

If you’re renovating your commercial property and are installing environmentally-beneficial assets, such as those which will save energy or water, you will be able to claim ECA in the first year of their installation. Low C02 emission and electric cars have a separate ECA scheme, and electric vans qualify for 100% capital allowance.

Research & Development Tax Relief

If your business focuses on research & development within science and technology a creative and innovative manner, you will be able to claim up to 150% tax relief.

The importance of understanding capital allowances cannot be overstated. If, for example, you wish to sell your business or purchase a commercial premises, and no previous capital allowance has been claimed, it will affect both the sale price and the amount of capital allowance you can claim in the future. It is essential, therefore, that you consult with a qualified and professional accountant who has experience in the area of capital allowances for businesses. The Eddisons team can offer you guidance and advice on all aspects of capital allowances in order that you can make an informed choice about minimising your tax liabilities.

 

Written by: Tony Hirst on Tuesday 12/07/2016

 

Should a commercial landlord forfeit the lease when their tenant is in rent arrears?

Should a commercial landlord forfeit the lease when their tenant is in rent arrears?

 

Being a commercial landlord undoubtedly has its benefits. However, there are times when a tenant either cannot or will not pay their rent. In these situations, the landlord has to consider whether to forfeit the lease. We look at the circumstances surrounding forfeiture and ask whether it’s always best to forfeit.

Forfeiture

The word ‘forfeit’ comes from the Middle English via Old French, and means a crime or transgression which must be made good with a fine. Today, if a commercial tenant is in rent arrears the landlord is entitled to forfeit the lease before the lease’s specified termination date, without recourse to the courts. However, the landlord does not have an automatic right to do so – the right to forfeiture must be specified within the clauses of the lease.

If the lease does contain a forfeiture clause, it usually allows the landlord to begin the forfeiture proceedings within a specified period – typically 21 days after the amount of rent is payable. If the tenant has not paid by the specified time, the landlord then has the right to enter his or her property by peaceful re-entry and forfeit the lease. Most landlords use Enforcement Agents who act on their behalf to ensure that proceedings are carried out correctly – they also have the authority to change any locks on the premises and display relevant forfeiture notices. If a tenant refuses to leave, the landlord can apply to the court for possession of their property. The result of forfeiture is that the lease is considered to have ended from the date of the act of forfeiture, and that any obligations which the landlord had towards the tenant will cease from that date.

The landlord must take great care not to waive their right to forfeiture, if that course of action is decided upon. Waiving their right is defined as doing something that acknowledging that the lease still exists, such as demanding the outstanding rent, or accepting rent payments after the period of time that enables forfeiture to arise.

For tenants, a right to apply for relief of forfeiture exists. This will usually be granted if the full amount of arrears is paid, together with the costs of any proceedings.

The landlord’s dilemma

Sometimes, however, landlords must ask themselves whether forfeiture is always the best course of action. It’s not uncommon for tenants to be affected by the supply/payment chain, especially in today’s financial climate, and for the non-payment to be only a temporary situation. For repeat ‘offenders’, however, the latest missing rent payment may be the straw that broke the landlord’s back, as it were.

Landlords must also question the viability and expense of sourcing a new tenant after forfeiture has taken place. Are they willing to have an empty property with no rental income for however long it takes to replace the tenant?

One possible solution is for the landlord to use the Commercial Rent Arrears Recovery (CRAR) process, whereby a Certified Enforcement Agent (formerly called a bailiff) recovers any arrears. This enables the tenant to continue in the property and means that the landlord doesn’t suffer financially through having an empty property or by having to find new tenants.

If you need advice or information on any aspect of forfeiture our skilled and highly-qualified staff can guide you through the process to ensure that the course of action you take is the correct one for you.

 

Written by: Steven Jones on Monday 11/07/2016

 

What is a loan security valuation?

What is a loan security valuation?

 

Whatever stage of business you’re at, there may come a time when you need to approach a financial institution to ask for a loan. In this case, you may be asked to offer security in the form of your commercial property. We look at loan security valuations and examine why getting it right is so important.

What is a loan security valuation?

An accurate and comprehensive loan valuation on your commercial property will enable banks and other financial institutions to make an informed decision on whether any loan they make to you will be secure. Getting it right, therefore, is of vital importance both to you and to the future profitability of your commercial property business.

Obtaining a valuation by an experienced professional is essential. Reputable banks and other lenders will only consider a valuation report prepared in accordance with the Royal Institution of Chartered Surveyors’ (RICS) Red Book which takes into account such factors as the property’s location, condition and quality, whether there is any demand/supply in the area for your specific property and what the current market conditions are in the area, how much income you derive from it, whether your tenants are reliable, if there is potential for an alternative use, if there is any planning permission in place which will affect its future value, how energy efficient it is, and whether the property is sustainable over the period of the loan, amongst other things.

A loan security valuation is not equivalent to the value of the property on the open market, however. The purpose of having a loan valuation completed is to establish whether the amount of the loan can be secured against the value of the property and, should you default on the loan, whether the lender can realistically recoup the amount.

Who should complete a loan security valuation?

If you’re considering raising money and need a loan security valuation, you should approach an experienced and professional RICS-qualified chartered surveyor who has undergone thorough training and has enhanced their knowledge through a regular programme of Continuing Professional Development (CPD). This will not only give you peace of mind that the figure they arrive at is accurate and validated by RICS, but also that, should something go wrong further down the line, they have professional indemnity which will offer legal protection.

Look for a firm that will offer you extensive local, national and international knowledge combined with experience of a broad range of property types and which can provide insight and analysis based on accurate and current information.

If you’re looking for a valuation with which to secure a loan on your commercial property, talk to the Eddisons team. Our experts have built up their experience and knowledge from valuing hundreds of properties over many years and have the insight to determine local market factors which may affect the eventual valuation figure.

 

Written by: Phil Kelly on Wednesday 06/07/2016

 

What is a Full Repair and Insure Lease?

What is a Full Repair and Insure Lease?

 

Among the many issues surrounding the leasing of business premises are the minutia of the lease. Amongst its many pages and clauses outlining your obligations and responsibilities you will come across the details of a Full Repair and Insure (FRI) Lease. We look at what this entails and why you should take particular note of its requirements.

FRI Lease

A Full Repair and Insure Lease is simply a lease where the tenant bears the full responsibility for repairing and insuring the property. For a landlord a FRI Lease is a good option – they are relieved of the responsibility of maintaining the building and, when the lease comes to an end, the tenant is required to restore the property to its original state. In addition, the tenant will also be required to insure the building. For a tenant, however, a FRI Lease can add a considerable financial burden to monthly outgoings.

What does a FRI Lease cover?

Within the terms of an FRI Lease, full responsibility for the maintenance and repair of the structure of the building as well as its interior and sometimes its exterior is assumed by the tenant. If the building is of modern design and construction, this will not necessarily be an issue.

  • However, if the building is more than 20 years old, problems may occur. These could include the risks of:
  • Subsidence which may lead to cracks and structural movement
  • Problems with the roof area (including leaks which may lead to water ingress), chimney issues or faulty guttering
  • Asbestos – its presence or removal
  • Damp – either rising, penetrating or condensation
    Internal services (such as lifts, heating or cooling systems) and external spaces (such as car parks or landscaped areas).

An FRI Lease may also include the stipulation that the tenant restores the premises, at the end of the lease, to the condition in which it was handed over.

What does this mean for the tenant?

  • The two main considerations for the tenant involved with an FRI Lease, therefore, are:
    Reinstatement – at the end of the lease, if the tenant has made any alterations to the property, it is their responsibility to restore it to its original condition. It is for this reason that all commercial tenants should commission a Schedule of Condition before signing the lease, to provide documentation as to the property’s condition, allowing any future dilapidations to be mitigated.
  • Comprehensive buildings and contents insurance – a detailed policy, arranged by a specialist broker, which covers such eventualities.

Negotiations

Of course, it is possible for a tenant to negotiate variations to a lease to avoid shouldering the full burden of the costs of repairing and insuring the property. A tenant may negotiate that they pay only for the costs of repair for the part of the building they occupy, in the case of multiple-occupancy properties, or they might insist on setting a financial limit on their contribution. Other variations which tenants might consider could include the freedom to alter the premises for their particular needs, to cap any service charges, or the ability to sublet without financial penalties.

What is clear is that a FRI Lease should only be signed by the tenant after consulting with an experienced and competent commercial law advisor. At Eddisons, our team has many years’ experience of dealing with the intricacies of commercial leases and can act on behalf of tenant or landlord when negotiating and preparing a lease.

 

Written by: Steven Jones on Friday 24/06/2016