Lease Make Good – The Break Up
Headaches and protracted negotiations at lease expiry could be avoided by well drafted Make Good clauses and thought out strategy (see Lease Make Good – The Pre Nup).
However, more often than not, the end of term Make Good obligations require negotiation between Landlord and Tenant. This may be in the form of Lease incentives or other commercial considerations negotiated between the Property Manager, Asset Manager and the Tenant directly.
Alternatively, specialist Make Good advice can obtained from Napier & Blakeley.
What We Do – End of Term Claims:
We will discuss the overall asset strategy for the premises. This will consider what the owner ultimately wants from the Make Good process, i.e. a financial settlement, the Tenant to undertake the Make Good works or to use the Make Good figure part of their Lease renewal negotiations.
Undertake a review of the Lease and other tenure documentation prior to inspection, in order to determine and provide advice on the likely Tenant responsibilities. Continue reading
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
