Log in

View Full Version : Before you sign up for a lease



MikeMusic
28-02-2013, 09:34
We're producing work faster in less space so it makes sense to move factory at the end of this lease and save almost half the rent and rates.
Print, even complicated books like we produce are demanded faster than ever now. In today out tomorrow or even out today ! It cannot hang around

Will cost to move, but the big, huge killer is the 'dilapidations' for the unit we are currently in. I thought the landlord was a decent, straight sort of guy.
I have changed my opinion.
I've been given a list of work to be done which comes to £46,000 + some other extras, say £50,000 maybe more. I know some things have to be done and I agree with that but what they are asking for is taking the pee. This is a nice unit in already good condition, built in the early 90s well specced

We got a very good deal on rent here for the nearly 4 years we have been here. I hadn't realised the scale of the dilapidations they would put in at the end of the lease
So what can you do ?
Be careful before you sign any lease - surprise
1. Read the terms of the lease very carefully. Not so much full repair and maintenance, IE. you have to do everything, that's normal, with few exceptions. Most important is what happens when you move on. You need to see a copy of someone else's dilapidations to appreciate the sheer scale of what can legally be asked for. Ask very pointed questions about what the landlord or agent currently asks for, get it written into the lease if needs be.
*But* the way of the world is that whatever they ask for today will become telephone numbers when you move as more landlords catch on to this great scam/way to make money and upgrade their properties for free.
2. Get a 'Schedule of condition' if you can and have it written into the lease before you sign
This means you only have to bring the place up to the standard it was in when you moved in.
Whoever your landlord is today could sell out to a big corporate with very large teeth and they can use a really unpleasant managing agent who will rape you.
When we left our first building in 1990 the landlord came in, spent 5-10 minutes looking around, said "Fine" and we went and had a beer.
Times changed.
When we moved in 2009 after being in our 2nd unit for 20 years we were hit with an initial estimate of £75,000
I got that down by spending more money on a specialist dilapidations surveyor who of course I had to pay. His fees were easily paid for by the savings.
Now it seems to have stabilised and you are likely in for only a little less than the estimate.
There are also specialist firms who do dilapidations
It's a whole industry
Be dead careful before signing a lease !

MartinT
28-02-2013, 10:34
Nasty. Can you use both a dilapidations surveyor and a specialist firm to carry out the work, or are you compelled to allow the landlord to do it?

Martinh
28-02-2013, 10:56
Hi Mike,

Sorry to hear about your bad experience and thanks for the heads up.

We're expanding fast and are considering taking on bigger premises. At the moment, I rent a space in a retail shop and thankfully, I'm not the one who holds the lease.

There are some amazing deals available, as even in Fleet in Hampshire there are plenty of empty shops. I guess you need to avoid being blinded by the initial deal and check the details.

Incidentally, what do they think needs doing for £50,000? New roof, walls, electrics, heating? I thought it was the landlords responsibility to keep these in good condition. Sounds like a big con to me.

MikeMusic
28-02-2013, 15:32
Nasty. Can you use both a dilapidations surveyor and a specialist firm to carry out the work, or are you compelled to allow the landlord to do it?
I have a dilapidations surveyor working for me to disagree with their dilapidations surveyor.

I have various options
Cough for the full amount. Quite a few people do apparently, but the figures are RICS based and mostly the highest you would pay. There are also contentious items like the carpet I had put in late 2009 is not of the correct quality so must be ripped out and replaced, £2200
How green is that ?
The factory floor is polished concrete in the main but they want it painted because it has some paint and a few small chips in it. A liability for the poor schmuck who takes the next lease.
Again how green is that ?
I could make an offer and they agree (laugh) or we haggle
I have prices from some dilapidations specialist builders and can use those figures as a firm base
I can get the work done, but very tight to achieve in the time I stupidly left myself - the benefits of always having too much to do and not prioritising
Can do part of the work and talk about the rest
If we stay after the end of the lease we get penalised heavily and possibly they change the locks. Not good for business

I hope this help anyone just about to take these steps
The market is for tenants ATM so drive a hard bargain

MikeMusic
28-02-2013, 15:50
Hi Mike,

Sorry to hear about your bad experience and thanks for the heads up.

We're expanding fast and are considering taking on bigger premises. At the moment, I rent a space in a retail shop and thankfully, I'm not the one who holds the lease.

There are some amazing deals available, as even in Fleet in Hampshire there are plenty of empty shops. I guess you need to avoid being blinded by the initial deal and check the details.

Incidentally, what do they think needs doing for £50,000? New roof, walls, electrics, heating? I thought it was the landlords responsibility to keep these in good condition. Sounds like a big con to me.

Tread carefully

As you are quite close you could pop in to Shepperton and take a look at the report and the actuality.
You will be frightened.

Come and see what they are after for £50,000.
What you or I would be happy with they want replaced. What you or I would do for £5 they want £100
Full repairing really means "it's up to you mate". Most leases are full repairing - but it's the end of the lease where you are really beaten up
Happy to help anyone else who may be heading into this particular tunnel with eyes not fully open