Commercial property

[Geoffscars]

I own a shop on the edge of a small town.the area us a bit run down etc.
Had a tenant since the early ,80's who usually pay on time apart from a short period in the recession.
Anyway the lease needs to be renewed. They say they will no longer agree to repair.
If I get stuck with repairs the return will reduce
They say no one is agreeing to repair anymore
Anyone got experience of this?
How did things pan out

[Billsnemesis]

Geoffscars said:

I own a shop on the edge of a small town.the area us a bit run down etc.
Had a tenant since the early ,80's who usually pay on time apart from a short period in the recession.
Anyway the lease needs to be renewed. They say they will no longer agree to repair.
If I get stuck with repairs the return will reduce
They say no one is agreeing to repair anymore
Anyone got experience of this?
How did things pan out

In our experience there has been no significant change to the principle but tenants do regularly insist on a photographic schedule of condition and are reluctant to repair to a higher standard. Our landlord clients will usually agree if there is an additional covenant to decorate on departure

[surveyor]

I'm not seeing the change.

Assuming that the shop is in England or Wales, and the Lease is inside the act, the tenant is entitled to a new lease on similar terms. If the landlord is to take the repairing responsibility then I would expect a higher rent - which sorts your rent out.

I would also thing about serving a Dilapidations schedule - especially if you are able to do the work and recharge the cost. They will have to pay for the preparation of the schedule assuming that there is non-compliance, and that the lease wording is correct.

I would be most reluctant to take on a Landlord repairing liability if the tenant has let the property fall into disrepair.

Also all depends on whether the tenant has money behind them.

[Kateg28]

We have two commercial properties (shops) and one of them renewed about a year ago and is most definitely a repairing lease. Personally I wouldn't want it any other way.

[JQ]

surveyor said:

I would also thing about serving a Dilapidations schedule - especially if you are able to do the work and recharge the cost. They will have to pay for the preparation of the schedule assuming that there is non-compliance, and that the lease wording is correct.

Absolutely this. They are trying to wriggle out of the repairing obligations of their existing lease. You need to make sure they have satisfied these repairing obligations over the last 30 years.

And I agree with the others, as someone who reads multiple commercial leases a week, I've seen no change - Full Repairing and Insuring leases remain the industry standard.

[Geoffscars]

Thank you all for your views