Gray Point | Schedule of Condition | Commencement of Lease |

August 2018


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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

Retail Properties

Mike has advised us on multiple property transactions in recent years and is highly recommended. Mike brings a commercially astute, no nonsense approach to negotiations that not only saved us many thousands of pounds but a lot of time.
Pam Poppe, Managing Director, DRG Abacus
I would thoroughly recommend using Mike for any type of property transaction. He is a skilled negotiator and saved us a huge amount of time and money. We were able to leave all aspects of work to him enabling us to focus on our core business.
Mark Meek, CEO IWSR