Dilapidations

Dilapidations refer to the state of disrepair in a building.

A schedule of dilapidations identifies, on an item by item basis, where a tenant's breach of covenant has led to disrepair and, when appropriate, quantifies the cost of making good the breach.

There are two types of schedules; an interim schedule and a terminal schedule. An interim schedule is generally not costed whilst a terminal schedule should always be costed.

Dilapidations claims are limited to any diminution (loss) in value to the landlord's interest.

Andrew Cooper CPEC is an experienced company at negotiating dilapidation claims for both landlords and tenants.

Rent Reviews

Commercial leases can cover significant periods of time, for example 10 years plus is not unusual. It is therefore necessary to have a mechanism that allows the landlord to review the rent in order to protect their asset value, whilst at the same time ensuring tenants are not being forced to pay more then they ought to.

This process is known as a periodic rent review. Rent reviews seek to emulate the open market based on a hypothetical tenancy as determined by clauses expressly contained within a lease. They are generally on an upwards only basis.

It is extremely important for a rent review negotiator to completely understand the implications of what are often very subtly worded lease clauses. They should also hold a comprehensive understanding of the various acts that are incorporated within commercial property leases.

A detailed knowledge of property valuation is essential.

Andrew Cooper CPEC offer experienced rent review negotiators and are able to produce expert witness submissions for third party determination.

Lease Renewals

Unlike rent reviews, the rent of a property can go down as well as up during lease renewal negotiations.

If a lease benefits from the Security of Tenure and Compensation Provisions of the Landlord & Tenant Act of 1954 (part II) as amended, a notice will need to be served by either the landlord or the tenant to bring to an end the existing lease and introduce a new lease.

If a tenant does not wish to renew their lease no notice is required meaning a landlord could find themselves with an empty shop without warning.

A good understanding of the Landlord & Tenant Act of 1954 and the various notices is therefore important.

If a lease renewal cannot be agreed the tenant will be forced to make an application to the Courts in order to protect their tenancy. The financial implications of going to Court can be significant and obtaining professional advice from the outset is crucial.

Andrew Cooper CPEC offer experienced lease renewal negotiators and are able to produce expert witness submissions for Court or PACT (Professional Arbitration on Court Terms).

BREEAM In Use

BREEAM In Use has been developed to allow building owners, managers and agents to utilise a respected and recognised environmental benchmark in the management of existing buildings.

BREEAM In Use is ISO14001 compatible, conducive to good estate management and is a vital tool for any landlord, tenant or, organisation seeking to highlight their “green credentials”.

Click on the BREEAM logo above to find out more about BREEAM In Use.

Andrew Cooper CPEC offer BREEAM In Use Assessors and audits applications for BREEAM In Use certificates.

Commercial Lease Advisory Service

If you are a landlord or a tenant about to sign a commercial lease, you would benefit from this service.

Solicitors are vital in the conveyancing process, but it is unusual for them to actually inspect the property they are preparing a lease for. Their advice can often be “text book” and not tailored to the actual property in question.

Commercial leases incorporate many facets of law all of which may have an implication on future valuations, such as rent reviews, lease renewals and capital valuations. A solicitor is not always best placed to advise on such matters, and a holistic review of a lease and its implications, following a physical inspection of the subject property, can often save future costly misunderstanding between a landlord and a tenant.

Andrew Cooper CPEC can offer experienced lease negotiators with a detailed knowledge of commercial property law.

Commercial Energy Performance Certificates (EPC's)

It is now illegal to market a commercial property for sale or rental without first having an EPC in place. This includes tenants who wish to assign their lease.

It is important to ensure that your EPC assessor is accredited by a recognised and reputable establishment such as BRE or CIBSE.

It is easy for an assessor to produce an EPC based on default values for compliance purposes only. The result is usually an inaccurate EPC rating which is of no real value in benchmarking a building's actual efficiency or offering recommendations for improvements.

Worse, an inaccurate EPC could come back to haunt a landlord at future rent reviews. For example, if a tiered market develops with tenants paying a premium for energy efficient buildings, a property with a poor rating may well be down-valued. Any improvements made to the energy efficiency of a building post-EPC by a tenant, could in theory be disregarded at future rent reviews.

Andrew Cooper CPEC offer experienced BRE level 4 accredited assessors, meaning that they can deal with complex buildings. The company uses the latest technology and software to ensure that the EPC is as accurate as possible.

Schedules of Work to Enhance the Energy Efficiency of Premises

There are many reasons to employ the services of a professional and accredited energy consultancy when building, refurbishing, or, improving a commercial property.

These include: The Energy Performance of Buildings Directive (EPBD), The Climate Change Levy (CCL), the Carbon Reduction Commitment (CRC), global warming, energy securitisation, energy supply and pricing, Feed in Tariffs (FIT's) and Enhanced Capital Allowances (ECA's). All of these will affect property values, either now or in the near future.

Andrew Cooper CPEC offer BRE accredited Level 4 energy assessors and BREEAM In Use Auditors with a good knowledge of environmental (energy) legislation and various incentive based schemes.

Part L Compliance

We are able to offer Building Regulations 2000 Part L2A compliance advice and issue Part L2A compliance certificates.

Andrew Cooper CPEC are accredited by BRE to issue PartL2A compliance certificates.