Spot It & Save It
The Benefits of a Schedule of Condition
In celebration of the end of our glorious (if challenging) heatwave, I am delighted to be writing the first Gray Point newsfeed; something which I hope to circulate regularly and in which I will comment on what I believe, is ‘of the moment’ news and ideas on the commercial property market.
Our hot topic at the moment is what we refer to as the ‘holy grail’ of documents for leased properties: the schedule of condition. Something often rushed or overlooked when renewing a lease, with costly repercussions for you, the tenant. Where commercial leases require you to repair or maintain a property, the schedule of condition provides evidence as to the state of the property when the lease commenced. The two together simply means you don’t pay for what you didn’t do.
There’s no way around the fact that a legally binding schedule of condition, when done properly, is time-consuming and a little costly. In my experience, however, a detailed SOC attached to your lease will save you up to 50% in costs at expiry, when your landlord presents you with their claim for dilapidation on the property. Now, that’s surely worth the initial outlay.
Having helped a good handful of tenants avoid getting caught out this past week, I am heading down the M4 to cast my line into the sea off the Pembrokeshire coast, hoping for a bite or two from a smooth-hound, tope or perhaps even a large bass.
Enjoy your summer.
Mike Gray MRICS