Full Repairing And Insuring Lease For Shared Building.

Second Place · Apr 9, 2019

I’m looking at leasing two units in a building containing about 14 units. I’m currently at the heads of terms stage and I’m going to have a solicitor look over the lease before I sign it however was looking for ideas at the minute.

The lease states it is for units 3 & 4, about 250sq.ft and the landlord is asking for a full repairing and insuring lease. Presumably this is for the units I’m renting and not the whole building which will be covered under the “all inclusive” rent.

I was going to try and get it changed to –

-I don’t have to put it into a condition it was not in when I leased it, plus carry out a schedule of condition. One of us takes photos and we both sign them to say this is how we found it (hypothetically if asbestos was found would this stop me being responsible)?

-I’m not responsible for the structure or roof of the building.

-Limit my liability to £5,000.

Is this looking good at this stage which should hopefully save the solicitor time and me legal fees?

Mr D · Apr 9, 2019

You can try and get it changed to what you want. The other side does not have to sign it.

Just don't try running up your solicitor bill.

WaveJumper · Apr 9, 2019

Well its good news you are getting your solicitor looking at this as you are aware a huge amount of pitfalls. Have you asked if an asbestos survey has been carried out if so they should be giving you a copy.

Engage Legal · Apr 9, 2019

You're hiring a solicitor - best ask him the details of the legal questions.

That said, agree your commercial terms first - this will save your solicitor time later in negotiating these with the other side (and hence save you costs).

As a tenant I would be surprised if you were responsible for structural repairs - this is uncommon.

ComPropSolicitor · Apr 10, 2019

Sounds like you are on the right sort of lines in trying to limit your repairing obligations to a photographic schedule of condition. However, would certainly help to get a solicitor involved from an early start as what very often happens is that if terms are agreed in the heads of terms once solicitors are instructed you will struggle to get anything amended. this is particularly important if you have over looked such things as break clauses, etc.

Second Place · Apr 10, 2019

WaveJumper said:
Have you asked if an asbestos survey has been carried out if so they should be giving you a copy.

I’ve got no reason to believe there is asbestos in the building (I also have no reason to believe there is none). Having worked in a building where previous “immobile” asbestos boards were found to be breaking down and the company being quoted between 1 to 2 million pounds to have it fully removed I’m a bit paranoid about asbestos.

ComPropSolicitor said:
Sounds like you are on the right sort of lines in trying to limit your repairing obligations to a photographic schedule of condition. However, would certainly help to get a solicitor involved from an early start as what very often happens is that if terms are agreed in the heads of terms once solicitors are instructed you will struggle to get anything amended. this is particularly important if you have over looked such things as break clauses, etc.

I got the “full repairing and insuring” lease changed to an “internal repairing and insuring” lease however because of this the landlord did not want to limit my liability. However, by the looks of it there is no personal guarantee so worst case scenario I lose the company but can’t be touched myself. Next step is getting the lease looked over by a solicitor.

WaveJumper · Apr 10, 2019

Second Place said:
I’ve got no reason to believe there is asbestos in the building (I also have no reason to believe there is none). Having worked in a building where previous “immobile” asbestos boards were found to be breaking down and the company being quoted between 1 to 2 million pounds to have it fully removed I’m a bit paranoid about asbestos.

I got the “full repairing and insuring” lease changed to an “internal repairing and insuring” lease however because of this the landlord did not want to limit my liability. However, by the looks of it there is no personal guarantee so worst case scenario I lose the company but can’t be touched myself. Next step is getting the lease looked over by a solicitor.

Yes don't blame you for being paranoid about the subject, when in the past dealing with retail units other than the usual places, ie ceiling tiles, pipe gaskets and fire insulation the most common place we always came across issues with were floor tiles. Its good you getting the lease looked over best of luck

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