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BREAK OPTIONS: Dilapidations:

11/1/2018

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Seeing the full 360 degree perspective is essential - however distorted.

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Acting for the Tenant as part of exercising their Break Option. Always a difficult time for Tenant's as they navigate through the Lease clauses to ensure compliance with the Lease obligations, to ensure they can vacate with minimum liabilities. This might be because they have grown the business or they are reducing their property obligations across a portfolio. 

MGRA identify the specific clauses relating to Dilapidations, that normally includes:
  1. Repair
  2. Redecoration
  3. Reinstatement 
  4. Yield Up in vacant possession 
  5. Cleaning of the Premises
  6. Statutory compliance
  7. Landlords and Tenants Fixtures and Fittings
  8. Chattels 
​
We generally appoint contractors if time allows to enable the Premises as defined in the Lease Plan to be handed back ready for effective marketing and to negate any arguments by the Landlord on effect on reversion. 

Above example unit was repaired, decorated and cleaned within a four week period from instruction, whilst liasion with the Landlord's Surveyors to ensure agreement where possible. 

This includes ensuring compliance with statutory requirements on:
  • Asbestos Registers
  • Electrical and Mechanical installations
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sCHEDULE OF CONDITION: UAV DRONE

9/26/2018

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MGRA are using UAV (Unmanned Ariel Vehicles) or ‘Drones’ with a high definition camera installed to inspect and reach certain aspects of the property. We can photograph and record the condition of elements of the building or site from an aerial perspective.
 
The video footage can be uploaded onto the cloud enabling recorded images to be worked on off site at the point of survey and for extraction of relevant photographic information to enable defects at height to be referenced.
 
MGRA use photographic and video in the inspection survey and inspections of:
 
  • Roofs and high level structures, such as chimneys and abutment details
  • Gutter and flashing details at high level
  • Main weathering fabric
  • High level curtain walling
  • Stuctural frame inspections and gantries
  • Defect Diagnosis (where inaccessible)
  • Site environments
  • Thermagraphic cameras to record where insulation might be defective
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Dilaps & technical DUE DIligence

1/26/2018

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Five stage approach to liability:

1. What is the physical subject matter of the covenant as expressed in the documents
2. Is the subject matter in a damaged or deteriorated condition
3. Is the nature of the damage or deterioration such as to bring the condition of the subject matter below the standard contemplated by the covenant 
4. What work is required in order to put the subject matter into the contemplated condition 
5. Is that work of such a nature that the parties did not contemplate that it would be a liability of the covenanting party. 

The Landlords evidence in support,  should include consideration for;
1. Service of the Schedule of Dilapidations and validity 
2. Existence of breaches of covenant 
3. Written evidence developed with care

The Landlord should evidence the breach through: 

a) The Lease and engrossed documents forming the basis of the claim, including licenses for alterations and schedule of condition, planning and building consents etc 
b) Landlord  or their successors in title needs to be evidenced
c) Tenant or their successors in title needs to be evidenced  
d) Service of S146 notice where required, drafted and served in accordance with procedure 
e) The existence of breaches of the covenant to repair, redecorate or reinstate the premises evidenced. 
f) Expert Witnesses - such as quantity surveyors for the costings and valuer for the property valuation
g) preparation of the same into a Scott Schedule.

MGRA are working hard for both Landlord and Tenant to ensure that liability is defined and the Premises surveyed in consideration of the Lease covenants in order to ensure an evidenced based approach to the claim is adopted. 
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  • SERVICES
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