Help with Commercial lease? I am new to this I dont know what they mean....

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What does this mean? We have an empty shop, these people want to turn it into a hair dresser. Why would they ask or their solicitor ask for the below concession?

"The only matter of substance is that they have asked that their repairing obligations be qualified so that they are not obliged to put the property in any better state of repair and condition than it is in at the date of the Lease. This is meaningless unless a schedule of condition is attached to the Lease showing what the condition the property is in at the outset. This is fairly easily done as the schedule of condition can comprise a series of photographs. In the first instance, however, I have deleted their amendment but could you let me know, if they come back to me on this point, whether or not you would be amenable to limiting their obligation in such a way?"

Ask your solicitor about dilapidations. I can't see an issue with it, but what's the norm? Is there something they have noticed which they think they might be asked to fix? Is it a FRI lease or not?

They are just asking that it be made explicit they only have to return the premises in the condition they were when they took on the lease.

so if they put plumbing in and stuff to make it a hair dresser they have to return it to no extra stuff.

wow what sort of thing, its an empty ish shell really, one of the reasons I agreed to a hair dresser was because I thought they would make it nicer than it is now...its a bare room, with odd work that may need doing , ie some remnants of old kitchen work that may need taking out...

what is FRI lease?

I don't know what you mean by 'what sort of thing'.

FRI = full repairing and insuring. I guess it isn't that kind of lease.

Maybe they are worried you might want them to leave as a fully set up salon? Ask your solicitor to find out if there is a specific concern.

Sorry I meant what sort of of thing do you mean they might be seen to repair. Obviously you have not seen the shop but I thought you could give example.
A full repairing and insuring lease, is that wedding good thing or a bad thing?
It's not a salon now, it's just a normal shop.
Surely once they turn it into a hair dresser salon, it is would cost me money to return it to plain shop?

With an FRI lease the tenant is responsible for all the maintenance and for insuring the property. For the kind of commercial unit you describe, that would probably put prospective tenants off. If you are not familiar with the term, it hasn't been advertised as such.

No point in speculating when you can ask them, but tbh it doesn't sound a big deal to me. But get your solicitor's advice.

OP, do you not have an estate agent and solicitor working on this for you? They should be able to explain all this to you and advise what is normal.

The "standard" position in a commercial lease is that the tenant has to return the unit at the end of the lease in full repair - even if it wasn't in that condition at the outset. It's certainly not uncommon though to alter this if the unit is not in top condition and this is what your solicitor means. HTH.

Ok your helping me to make more sense of its now. The last tenant did not have runner and left rubbish. It didn't look great. When I got home the electrician in to yesterday, he was doubtful about it, but then once he tested the circuits he was pleasantly surprised. He said actually its all in good order with some minor stuff doing and a feeler bits updating but all much better than expected. He said... The place looks a bit scruffy so I expected it be worse.
Ie it's all ok but looked at bit sorry for itself.

My solicitor is I think is treating this like quick pocket money change. I have been told the condition of her price is not going to much detail 😱😱. She feels the other side of are being ott and excessive with the forms they have wanted filling out etc.

If this falls through I am happy to sell it, I am not desperate to rent it, although would like to try it out. I don't want to be held to ransom though and I don't feel my solicitor is much help.

Now you have given me more idea what's going on, a I can go back to her with more specific questions!

I suppose it what I an struggling with is that at the moment it's a neutral shop. It could be made into anything... It has good sound walls, ceiling floor, no damp, mold etc... Electrics are fine. But to turn it into a salon... Will involve lots off work, drilling, new plug sockets, sinks plumbing...
What if this work causes damage, or the hair dresser doesn't work and they leave. I will be left with a non neutral shell and lots of extra stuff...

OP depending on how the lease is drafted, they be worried that taking on a lease which just says everything should be in good condition when they give the property back that it might include the roof / the garden (or car park maybe), the windows etc. So all they're asking for is that they are only obliged to return it in the same state as it is now which is easily 'recorded' by photographs.

So I would take photos and then they sign them? How would it work.

This is what you pay a solicitor for. To be honest, if your solicitor is not advising you on this, which is one of the aspects of a lease that has potential to cause a dispute / expense, you need a different solicitor!

You need a surveyor for this - who is letting the place for you? That would be something I would expect them to do. You really need to do your homework on this or you could be acting illegally (ignorance of the law is no defence) or get into a heap of bother because you aren't savvy in dealing with tenants.

They were quite lacking in, he is new to job, he said 'took be honest it's it's mess in there' which was superficial mess. Ie not ceiling hanging down etc.
Another thing is I have not asked for a deposit. The reasoning in my own head was, they did not ask for a period of no rent whilst they turned it into a hair dresser. Usually I thought you had deposit but they would have three months or so rent free to get it going. But now I am thinking, if they are going to such level of details if I don't get a deposit how can I hold them to standard of property when they leave?

Who is new to the job??? The solicitor? The potential hairdresser? This sounds like a huge mess in the making. Why have you not asked for a deposit?? Seriously, is no professional at all advising you properly on this?

I am new to this, the agent is new to it - ( new in role) and the solicitor has said she only set her fee because she wasn't expecting lots of inquiries this was directed to the other solicitor who she feels is going OTT for the amount of rent involved.

I did not ask for a despsit because they are paying rent straight off and one months in advance. Usually new tenant would pay deposit BUT have a few months rent free to fit out shop as requited. But I thought this myself no one advised me.

You need proper professional advice
Paid for
Otherwise you are asking for trouble

You really need to do your own research and get clued up fast - asking questions on here isn't enough, plus the questions you are asking show how inexperienced you are. You may need a licence for alterations in place for the work the tenant is going to need to do. Please join a professional landlords' association and do your research.

I am thanks wow, so many helpful posters, I didn't even know there is a ll association, just had a browse on their forums, again lots of brilliant advice.

Good idea re license I will ask about that too. I have emailed some proper surveyors and also my solicitor.