Lease Make Good – Pre Nup
Headaches and protracted negotiations at lease expiry could be avoided by well drafted Make Good clauses and thought out strategies prior to lease commencement.
Building owners and tenants can be poles apart in their understanding and interpretation of repair, maintenance and other make good related clauses. This in turn can lead to significant unforeseen costs, disputes and delayed income.
Attention to the lease definitions and obligations together with some good asset management strategies can help to avoid such situations.
Your lease and make good check list in this regard could include some thought around the following:
Premises
- What are the physical elements and spaces under the obligation of each party?
Commencement Date
- Does the obligation for repair, maintenance and make good extend to any previous terms of occupation perhaps under an earlier lease or option?
Condition as at Commencement
- If the tenant is expected to return the property back to a condition ‘as at commencement’ – can anyone recall what this looked and felt like?
- Is it well defined and recorded in a schedule of condition with plans and photographs? Continue reading
Nicolas was originally with N&B from 2017 to 2019 and brings a wealth of experience in all aspects of building consultancy and transaction advisory services. He has further developed his technical due diligence expertise by managing some of the largest instructions throughout Europe.
As a highly regarded Chartered Building Surveyor with over 14 years of experience, Nicolas has a deep understanding of property. He is client focused and prides himself on aligning advice with the intentions for the property and reporting on the commercial imperatives that matter.
This appointment further strengthens the capability and expertise of our national team and our ability to serve clients with property matters in NSW.
Nicolas’s contact details are provided below and please contact Nicolas or Stephen Cooke for any assistance. Continue reading →