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Solicitor4All
Solicitor4All, Solicitor
Category: Property Law
Satisfied Customers: 7831
Experience:  Director and Principal Solicitor. UK
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We have a question about the Full Repair and Insuring Lease,

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We have a question about the Full Repair and Insuring Lease, in which the tenant takes on all of the costs for repairs and insurance for the property being leased from the landlord. The commercial property we are planning to purchase has a FRI Lease. Just want to confirm, we as landlord, are not responsible for repair and maintenance of the property, and that the FRI Lease covers the whole building structure as well. We are at the initial stage of reviewing the property and have not asked the property agent for the lease agreement yet. Are there any circumstances that may cause the repair responsibilities to fall on the landlord's shoulders? Thanks.

A very good morning to you there, how do you do?

 My name is Solicitor4All a law expert with over 15years practice. I will be helping you this morning. Thank you for the inquiry.

Customer: replied 12 days ago.
Thank you

Thank you for your update, i intend to assist with a quick response.

Please leave the inquiry with me and i will prepare a response for you here this morning Thank you.

Thank you for your patience. Yes this entails that they do all repairs and therefore your prospective tenant will be wise to take legal advice to negotiate this term so they are only responsible for rebuilding or reconstruction but just repair and replacement. agreement.

If your tenant has good advice he will do the following before signing and thereby limit their repair liability:

  • Commission a full building, electrical, mechanical, and structural survey before signing the lease. Make sure the report covers the space being rented and any common areas.
  • Ask you to repair any defects either before the lease begins or within a defined time period. Certain defects which will not cause the tenant any issues can be excluded from the repair liability clause.
  • Make sure there is a cap on any service charges.
  • Ask for leeway in the case of fair ‘wear and tear’, similar to provisions provided in residential leases.
  • Limit liability to internal repairs only, meaning the landlord is responsible for external maintenance. So if they don’t do this they will be responsible for structural too. 
  • Do not accept liability for damage caused by inherent/latent defects. Although under law, a tenant is not responsible for repairing an inherent defect, if the defect results in damage to the part of the premises the tenant is leasing, they may be required to rectify the damage, and for cost-effectiveness sake, repair the defect to prevent the damage occurring again. If the tenant cannot negotiate excluding liability for latent defects, it may be worth it for them to take  out latent defects insurance.
  • If there are defects in the building, have them referred to in a professionally drafted Schedule of Condition.

So with he knowledge of the above you counter in your negotiations to ensure they are left with obligations and not that you do everything which defeats the purpose of his type

Any follow up please do not hesitate to send your message. I am always glad to assist and you clarify anything for you if you return for further input.

Customer: replied 11 days ago.
Thank you for the detailed reply.
You are most welcome
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