It is commonplace for purchasers to obtain a detailed Building Survey as part of their Due Diligence prior to acquiring the freehold interest in a property. However, incoming Tenants often neglect to gain a full understanding of their potential liabilities prior to entering into a Lease.
A Pre-Lease Acquisition Survey considers the current condition of the building and reports upon any immediate liabilities, and also takes into account future liabilities reporting on issues that may arise during the term of occupation and at lease end.
It is widely believed that a schedule of condition will help mitigate a tenant’s liability for dilapidations at the end of a lease. However, many tenants are surprised when, although their repairing liability may be limited by reference to a schedule of condition, they still face significant claims at the end of Leases, and this isn’t always as a result of a poorly drafted schedule of condition.