Fit Out and Dilapidations Costs

These costs are usually one off but will be directly related to an individual property, the initial condition of the property, your specific requirements and the terms of the lease.

Where you are comparing alternative buildings and their potential liabilities, it is however important to estimate these. For example, a building may have a low annual rental, but if the initial fit out costs or the potential costs on vacating are very high, the average annual costs over the term of your occupation may make the building uneconomical.

UK commercial leases usually have a tenants repairing liability which will obligate a tenant to put a property into good condition, fully repaired and decorated at the end of a lease. This is the case even if it was in poor condition at the start of the lease. It is always advisable to consult a solicitor and a surveyor at the start of any new lease negotiations to avoid potential liabilities further down the line.

Also consider that any alterations you carry out at the start of a tenancy may need to be pulled out and the offices returned to there initial configuration at the end of a lease, all at the tenants cost.

Previous>> Running and Operational Costs