For those purchasing a freehold interest or lease of a commercial property, whether it be a neglected public house or a state of the art office premises, a building survey will provide a detailed report on the condition of a building, identifying any defects and the likely costs to repair. The report will state what the building is constructed from, whether that be steelwork, reinforced concrete, traditional brick etc, and point out if any hazardous material, such as asbestos, is present.
Because of the nature of commercial leases, whereby a tenant is often liable for repairs to the premises, a building survey is essential to clarify in detail the condition of the building and its component parts. Suggestions for remedial works may also be given in the report. For tenants, it is important to understand future repair liabilities and how the implications of this can affect lease negotiations and for those wishing to purchase a property, it can assist with the possibility of a lower price being accepted by the vendor.
Schedule of condition
For both property owners and new tenants, a schedule of condition is a useful report on the state of a commercial property at a given point in time. This report will describe, in detail, the condition of every part of the property, from floor to ceiling, and everything in between, and document that with photographs. This is important for tenants who have a liability within the lease to return the property to its original condition at the end of the term of the lease and has the potential to save thousands of pounds in repairs.
For property owners who have invested in the refurbishment of their property, a schedule of condition is useful to avoid contentious litigation at the end of a lease, if a tenant has damaged or abused the property in some way, providing documentary evidence of its condition at the start of the lease.
Schedule of dilapidations
This type of survey is usually carried out at the end of a lease by a property owner in order to establish the repairing obligations of their tenant, and to understand how best to settle the amount of dilapidation without resorting to legal action. In cases where the dilapidation is considerable, a building surveyor may also act as an expert intermediary in any negotiations, on behalf of either the landlord or the tenant.
It is vital that any commercial property survey of whatever sort is undertaken by a suitably-qualified and -experienced surveyor and that they are a member of The Royal Institution of Chartered Surveyors (RICS). RICS surveyors have undergone extensive and on-going training.
If you need advice or information about any aspect of commissioning a commercial building survey, as a tenant, landlord, purchaser or vendor, talk to a member of our team. Our RICS-qualified experts can offer you professional, confidential guidance on the survey which is right for you.