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Schedule of condition of a new premises

Project

BTG Eddisons was instructed by MDK Office Seating Ltd, a UK-based upholstery manufacturer and supplier, to prepare a Schedule of Condition ahead of the company signing a lease on a substantial warehouse facility in Leicestershire. The move formed part of a wider strategy to consolidate four operational locations into one site.

An initial inspection highlighted several aspects of disrepair and uncertainty regarding access and ownership responsibilities, making a detailed assessment essential before the lease was agreed.

Approach

In assessing the fabric of the building, BTG Eddisons’ drone survey identified a number of issues regarding the office and main warehouse area roofs. Heavy corrosion & previous patch repairs that were failing were obvious and guttering membranes were damaged.

Badly maintained trees in the nearby area overlooking the site of the business premises saw the survey report flag-up potential areas of concern regarding drainage, with roots extending to indicate the potential worsening of the uneven surfaces of block paved & general paved areas.

The site’s perimeter fence was in a state of significant disrepair and on further investigation this highlighted that rights of access and ownership of the yard needed to be clearly established and documented.

The presence of an electrical transformer on the site added to the lack of clarity regarding responsibility and access in the historic lease terms.

The built premises the client was looking to lease hosted an internal services room and, again, issues of rights of access were not clear, neither was the certification of the plant & machinery in the services room part of the available lease documentation as it stood at the point of BTG Eddisons’ report to the client.

Results

Following submission of the Schedule of Condition, the landlord agreed to improved commercial terms and committed to addressing several of the identified issues. The document also limited the client’s future repairing liability on key elements of the property.

As a result of the successful outcome, MDK Office Seating Ltd subsequently instructed BTG Eddisons to review dilapidations claims on the premises the company was vacating, strengthening the ongoing professional relationship between client and consultant.

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