The essential journalist news source
Back
5.
September
2016.
WORCESTER SURVEYOR SAVES LOCAL GARAGE £40K

A Worcestershire Chartered Surveyor has saved a local automotive business nearly £40,000 in building repairs at the end of their lease on a garage premises.

 

Jonathan Mountford, a director at Worcestershire commercial property consultancy GJS Dillon, advised ST Automotive, an established mechanical garage in Worcester, when they were faced with a bill for repairs in excess of £60,000 on premises where they had taken over the lease only two years previously.

 

“In common with most businesses, ST Automotive did not realise that nearly all commercial leases include a clause which requires tenants to ‘keep and put into repair’ the entire premises, irrespective of what condition the property was in when it was taken,” says Mr Mountford.

 

“Because they had taken over the lease by assignment when acquiring the business which was trading from there, they also inherited the previous tenant’s disrepair of the building which they had occupied for the previous 15 years, a fact which was never explained to them by their legal advisors.

 

“ST Automotive is a growing successful business which was moving premises to accommodate further growth, so it was very shocking and unwelcome bill,” says Mr Mountford.

 

As an experienced surveyor working on dilapidations claims for many years, after months of hard negotiations, Mr Mountford was able to reduce the repair bill to a little over £20,000.


Simon Tattersfield, Managing Director of ST Automotive says: “When I took the
assignment of the last two years of the lease I was not made aware of the consequences of a full repairing lease.  If I had known I would not have taken the lease in the first place. I am extremely grateful to Jonathan who managed to reduce the initial claim significantly.”

 

According to Mr Mountford the best way to limit a tenant’s repairing liability is by agreeing a “schedule of condition” at the onset of the lease.

He says: “A Chartered Surveyor documents in words and pictures the state of repair of premises at the start of a lease which ensures that the tenant only needs to return the premises to the same state at the end of the lease.”

 

Mr Tattersfield says: “When I moved to my new, larger premises the first person I called was Jonathan who carried out a comprehensive schedule of condition which limited my repairing liability and potentially saved me thousands of pounds. I cannot recommend the service highly enough”.

 

“When taking a lease on commercial premises always seek good legal and surveying advice,” warns Mr Mountford.

GJS Dillon provides advice on all aspects of new leases and lease renewals, including
Schedules of Condition and Dilapidation Reports.  For further information, please contact Jonathan Mountford on either tel. 01527 872525 or tel. 01905 28684 or by email: jonathanmountford@gjsdillon.co.uk. 

 

With offices in Droitwich, Worcester and Bromsgrove, GJS Dillon is a firm of Chartered Surveyors which offers a comprehensive commercial property service, and unrivalled geographical coverage, throughout Worcestershire and along the M5 and A38 corridors.