In this article, we cover the key aspects of repair obligations, such as rent-free periods, and schedule of conditions:

Repairing Obligation

Repairing obligations ensure that the property is in a good state throughout and at the end of the lease. However, be very careful – depending on the lease, you could be held responsible for repairs before your lease even begins.

Rent-Free Period

So, what happens if you are held responsible for historic damage? The worst result is that you have significant repairing responsibilities at the end of your lease, which could have been avoided at the beginning.

One way of dealing with this properly is agreeing on a rent – free period with your landlord. If the property is in poor condition before the lease commences, a tenant can use a rent- free period as a negotiation tool. It would offset the cost of carrying out repair work and meet the necessary standard.

It is worth noting though that other payments due under the lease, like service and utility charges, still need to be met during the rent-free period.

Schedule of Condition

Recently, we were able to assist a client who was in danger of taking on repair obligations at the end of their lease, but we negotiated a limitation based on the schedule of condition – a detailed document that lists the property’s current condition.

It can take many forms, including written documentation and video. It records any existing problems and repair costs prior to the lease being signed, helping tenants protect themselves against repair obligations.

Survey

Without these precautions in place, repair obligations can be very expensive. Prospective tenants should inspect the property carefully and carry out a survey, determining their potential repair liabilities.

Overview

There is a lot to consider before you sign a commercial lease, but value can be added when repair costs and responsibilities are avoided through legal advice, helping you with property inspection, rent – free periods, and schedule of conditions.  

Ultimately, these precautions could save you a significant amount of money when it comes to the end of your lease.

For information on the services we offer, please see our Commercial Property page.

The reason is that any organisation that is holding data relating to you must comply with the new regulation, GDPR, which will come into force on the 25^th May 2018. In due course, we will publish more detail of some of the changes, including the extended rights of anyone whose data is being held by a third party. In the meantime please do not simply discard the communications that are being sent to you.

They may look a bit dull, but they are likely to contain important information about the way in which your data is received, processed and ultimately destroyed.

The Legal 500 is the leading independent guide to law firms in the UK, aimed at buyers of legal services; over four million users visit The Legal 500 website each year.  Published annually, it is researched and written by an experienced team. The research process involves inviting submissions from law firms across the UK, in accordance with their guidelines.  The team from the Legal 500 contact clients listed in submissions for references, and researchers conduct interviews with firms as appropriate. In the finalised guide, firms are ranked according to location and practice area; leading individuals in each field are also listed. Every firm ranked – and every individual mentioned – in The Legal 500 UK is ‘recommended’.”  RMP is one of the few firms in the Black Country to receive the accolade for corporate and commercial work.

This independent endorsement of our commercial department is indicative that our clients can be assured that they are received a high level legal service when they use GPM Solicitor.

The register is exactly what it says on the tin: a list of those individuals who have a significant controlling interest in the company. The legislation does give some guidance as to the categories of people who will be PSCs:-

• an individual who holds more than 25% of shares in the company;
• an individual who holds more than 25% of voting rights in the company;
• an individual who holds the right to appoint or remove the majority of the board of directors of the company; and
• an individual who has the right to exercise, or actually exercises, significant influence or control over the company.

Where a trust or company would satisfy any of the above conditions, then any individual holding influence or control over the activities of that trust or company also need to be considered.

Steps to take 

The company must take reasonable steps to find out whether it has any PSCs, including contacting them and then collating certain information regarding them (their nationality, service address, date of birth etc.) This information is then to be included on the company’s PSC register. The register must be kept updated.

The register cannot be blank. If there are no PSCs, then a statement to that effect must be placed on the register in the required format.

Confirmation statement

From 30 June 2016, the current annual return system will be replaced by a new Confirmation Statement. This statement must record any changes in the PSC register over the previous year.

Alternatively, the register can be kept at Companies House and changes recorded as they happen.

Failure to comply with the new requirements is a criminal offence, so it is crucial that the register is kept and that it is accurate.

If you would like to receive further information contact our commercial team.