I’m in the process of buying a business with a property lease. How can I find out what the dilapidations bill will be?
Depending on the legal agreement for the purchase of the business, it is likely that you’ll be liable for everything and anything within the current lease agreement for the business premises. From a dilapidations perspective that means you will be responsible for the maintenance and up keep of the building as described in the lease.
The best way to determine what the likelihood of this will be, is to have a dilapidations assessment undertaken on the property. It is important to carry out this assessment prior to purchasing the business. This will determine the current dilapidations liability on the property if the lease were to end on the day that the assessment was undertaken. This assessment will detail both works required and likely budget costs.
Carried out prior to the purchase of the business, this can be used as part of the purchase agreement to push the existing dilapidations costs onto the vendor, albeit this would need more detailed advice from your commercial solicitor.
This answer is a guide only. Further advice should be sought regarding your position with an existing commercial property lease. Jones Melling has a team of specialists who can advise you on the best course of action regarding your property.