The building, known as Manchester Chest Clinic, is owned by Manchester City Council and is leased to the Trust on full repairing and insuring terms. The Trust occupies part of the building, but other areas are occupied by several external organisations, under various sub lease and license arrangements.
The landlord had expressed concern over the condition of the building, and at the same time our client was considering their longer term interest in the property as part of a strategic review.
Approach
We reviewed the various lease and license documentation and carried out a detailed inspection of the property. We prepared a building survey report and also advised on the dilapidations liabilities in relation to our client’s head lease as well as the various sub-lease agreements. Finally, we advised on the defects that should be addressed in the short term in order to alleviate the landlord’s concern regarding the tenant’s breach of repairing covenant.
Results
Our report on the condition of the building was used by the Trust as part of the decision making process regarding their future plans for the building. Our advice in relation to the extent of works that should be undertaken in the short term assisted in preventing any further action being taken by the landlord. By taking this strategic approach, the Trust improved its relations with the landlord, and was able to put in place a plan to limit the future financial impact of the dilapidations liability.