A majority of tenants do not consider the expiry of their lease until they are faced with the six months left. That’s when the panic sets in. The postings of surveys by the landlord, the dilapidations schedule comes along and you have a price label that will turn your finance director pale. It is not only prudent to beat this game. It will save your business tens of thousands of pounds.
What Does It Take to Wait too Late?
Imagine the following scenario, you are three months away to end a lease. Your space has been already surveyed by the surveyor of the landlord and a schedule has been generated. You are looking at strip-outs, repairs, decoration, carpet replacement. Your contractor provides you with a price and a schedule. Unless the term of your lease is exceeded. You now have to negotiate extensions, hold-over rent, or still worse the landlord has taken over the works and sent you the bill with his mark-up on it.
Office dilapidations London projects do not occur instantly. It has planning, procurement, and coordination with the building management. There are buildings that admission of contractors is only on weekends. Strict loading bay times are associated with others. Access can be a nightmare if you happen to be in the City or the Canary Wharf.
Early is Better When It Comes to Choices.
You are in charge when you are planning over twelve months. The scope of works can be negotiated with the landlord. Occasionally they are already planning a renovation, and they do not need you to restore everything. That ceiling you removed? They might not care. The partition walls? Replacing the entire floor they are.
Such discussions are cost effective. Real money. I have observed settlements being skewed in £200,000 to £40,000 since the tenant began talking prematurely. The landlord gets certainty. The tenant gets a discount. Everyone moves on.
You can also take time in getting competitive quotes. Rush jobs cost more. Contractors are aware that you are desperate and charge you so. Thinking and planning ahead and you will do better. You are able to compare experts, reference checks, make wise decisions rather than take whoever is around.
Is This Lease in Fact Full Reinstatement?
This is where people trip up. Not all leases require you to bare everything to bare concrete. There are yielding-up clauses which are quite flexible. Others designate some works to open them up. There is a difference between reading your lease correctly and having a surveyor, knowledgeable of office dilapidations London requirements.
Most of the leases claim that you must decorate during the last year. When you wait till month 11 you will be paying higher premium rates on decorators. Reserve them in month 8 and you would receive normal pricing. Same work. Different cost. It takes a lot of explaining when you say it but hundreds of tenants fall this way every year.
The issue of schedule building is also there. In case of multi-let, the landlord may be having three other tenants vacating at the same time. Contractors get booked up. Lift access is made competitive. The sooner you start planning your office dilapidations London, the sooner you are not competing over the resources.
What is the amount of planning time you really need?
In a small office of less than 2000 square feet, perhaps six months will suffice. You are speaking of primitive redecoration, some slight work. Nothing complicated. Anything larger, of course, you must have a year, particularly when you are already altered. You ought to be considering this when you are two years away at the expiry of your lease.
That is too much until you dissect it. Survey the space at 24 months. Get an idea of costs. Budget for year-end. Open negotiation with the landlord at 18 months. Speak with your surveyor when you are 12 months away. Tender the works at 9 months. Contractors appointed after 6 months. Full works 3 months prior to expiry of lease. That leaves you with breathing room in case something goes wrong.
Building works go wrong. Contractors find problems. Surveys indicate that asbestos is anywhere it is not supposed to be. Floor screeds require excessive time to dry up. Signage removal is a process that requires weeks in terms of planning permission.
The Cost of Poor Planning
I have heard of an office dilapidations London company that procrastinated everything to the last moment. They were forced to pay their landlord £150,000 on a job that should have cost £60,000 had they carried out the same themselves. Their contractor was established by the landlord who had marked everything and the tenant had no bargaining power. The lease had ended. Game over.
Then there is the reputational aspect. The size of property markets is smaller than it appears. Landlords talk. Agents remember. It follows you, in case you are hard on office dilapidations London requirements. The next lease negotiation would become more difficult as you now have form of leaving spaces in bad conditions.
Early is everything: You have the story. You’re the reasonable tenant. You’ve engaged properly. You have sought to conceive solutions. You even have evidence of good faith, even though you may find yourself in a dispute. That is when the surveyors are negotiating settlements.
The most intelligent tenants learn how to consider dilapidations as their property strategy on the first day. On entry, they take pictures of the space. They check on changes that are approved by landlords. They keep good records. They are prepared when it is the time to exit. No surprises. No panic. Simply being a professional completion of your office dilapidations London needs and a clean break.
You do not plan early because you simply like management of projects. You do it since the other alternative is costly, traumatising, and entirely avoidable.