Graham Allman managing director, GA-Select

The term "dilapidations" can be greatly misunderstood. It normally applies to the condition of a commercial property at the end of the lease period and not, as more commonly understood, at the time of assignment; this is more a

"schedule of wants" of property issues outstanding.

So, dilapidations in the true sense can only be legally

enforced at the end of the lease. But a pubco will want to protect its assets and put pressure on the outgoing lessee to put matters in order by way of a "schedule of wants". This has the advantage of allowing the incoming lessee to spend any repair funds they have on business development.

However, this is not a perfect world. Some pubcos will add a clause to their contracts referring to the condition of the property at assignment - and they are not precious about who undertakes the works. Look out for decoration

schedules, such as internal decoration every three years, and ensure annual checks on aspects such as electrical condition have taken place and that certificates are available.

Lessees often say to me that the pubco surveyor did not even look at the roof - this is the reason why, because it is not the end of the lease.

It is common practice for purchaser and vendor to come to an agreement to transfer the schedule with an undertaking to put matters right, sometimes with an adjustment in the completion price.

An independent survey is always a good idea for any

purchaser who can then share its findings with the vendor and take a commercial view on its contents regarding risk and costs, both of which are measurable.

Mrs x's response

Firstly, thanks to the MA experts for offering their advice. The problem with dilapidations is that it is not something you really consider until you want to leave and assign the lease.

I think the best way forward for us now is to follow the advice of the experts and hire an independent surveyor to negotiate a reduction on our behalf.

I do think the system could be better worked out and my advice to others would be to thoroughly check their repair and

maintenance obligations before signing a lease agreement.

Hopefully, we will get this matter sorted out as soon as

possible, but I can't help thinking that it is another way for the pubcos to get a bit more money from their lessees.