Old alterations can change the premises exit plan

Topic
Leaving business premises
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3 minutes
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  1. Follow one alteration through its history
  2. Separate the record from the interpretation
  3. Give uncertainty a place in the programme

The building you leave may differ substantially from the building first rented. A partition could have moved, a mezzanine could have been extended and services could have changed during several projects. Give the property advisers the history of those changes before agreeing the exit work.

Start with a chronology for the property advisers. It should connect what is known about the building with the documents available. It should not decide which changes were authorised or what the tenant must now remove.

Follow one alteration through its history

Use a specific feature to test the records. For example, a fictional workshop has a mezzanine that staff remember being enlarged. The file contains a plan from the original installation, a later contractor invoice and an email referring to consent. Nobody has located the final consent document or the later plan.

Those records establish different facts. The invoice may identify a contractor and approximate date. It does not establish the terms of the landlord's consent. The original plan may show the earlier arrangement, but should not be labelled as the current layout without verification.

A short chronology could contain:

Event Available evidence Question for the adviser
Original installation Dated plan and signed document, if held What do these records establish?
Later enlargement Contractor invoice and email reference Which further documents are needed?
Current arrangement Existing survey or competent assessment, if available Does the present condition match the verified records?
Proposed exit treatment Owner's intention and landlord discussion What needs agreement before instructions change?

Separate the record from the interpretation

Section 4 of the RICS dilapidations standard for England and Wales includes alterations consents and relevant plans among the documents that may be needed. Your solicitor and surveyor should determine their meaning and whether the evidence is sufficient.

Do not assume an alteration is yours because it is useful to your business. It might pre-date the tenancy, involve another group company or contain separately owned equipment. Equally, staff recollection that “the landlord was happy with it” leaves the actual agreement to be found and reviewed.

Use the incomplete lease-file process to pursue missing records. Keep recollections labelled with who supplied them and when. Preserve earlier versions so the advisers can understand the sequence.

Give uncertainty a place in the programme

If an unresolved alteration could change the scope or timing of exit work, show that decision on the closure programme. Identify who is obtaining advice and when the owner needs an answer. Do not quietly assume the least expensive outcome in the budget.

A surveyor's instruction should state which alterations need particular attention. The surveyor can then explain whether further specialist information or investigation is required. Do not arrange invasive work without appropriate permissions and competent planning.

If the landlord proposes to retain an alteration, use the fit-out agreement agenda. That proposal needs to identify the actual feature and its associated questions, not just refer to “everything fitted”.

When enquiring about a closure sale with UK Auction Group, identify installations whose ownership or removal treatment awaits property advice. That keeps the potential sale scope aligned with the facts the business has established.

Explore Leaving business premises.

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

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