02-08-2007
PRACTICAL POST-FLOOD ADVICE FOR LANDLORD AND TENANTS
Now the flood waters have receded landlords and tenants begin the painstaking task of reinstating thousands of commercial properties across the region.
But under the obligations of the lease whose responsibility is it to carry out the work?
Under most commercial leases the landlord is responsible for obtaining buildings insurance. This situation may vary for leases of part of a building, for example, just one floor, as the landlord's obligation will only extend to the main structures of the building and exclude all internal doors, walls and flooring.
Clearly damage to fixtures and fittings is a tenant's responsibility and tenants should refer to their own insurance policies in this regard.
Tenants should not merely assume that flooding is a risk against which their landlord is insured. In the event that the property is located on a flood plain where insurance cannot be obtained, the lease will need to be checked to see whether the lease deals with such uninsured risks.
If a tenant discovers that a landlord has failed to insure against flooding despite this being an obligation in the lease, they should seek professional advice immediately.
Commercial leases often oblige landlords to insure against loss of rent in situations where the property, or access to the property, has been damaged by an insured risk, such as flood or fire. Normally tenants will not have to pay their landlord rent while the property remains unfit for occupation or is inaccessible.
Planning permission and building regulations approval may be required for the landlord to reinstate the property which will inevitably delay the work being completed. When dealing with listed buildings, even removing flood damaged items may require listed building consent.
To protect both landlords and tenants most leases should contain a provision which states that, if the property has not been reinstated within a specified period, either party may serve a notice to terminate the lease.
BPE solicitors are staging a business recovery seminar, in conjunction with the Jelf Group on Wednesday August 15, where further information will be available for landlords and tenants. To reserve a place contact Tom Billcliff on 01242 248 282 or email tom.billcliff@bpe.co.uk
But under the obligations of the lease whose responsibility is it to carry out the work?
Under most commercial leases the landlord is responsible for obtaining buildings insurance. This situation may vary for leases of part of a building, for example, just one floor, as the landlord's obligation will only extend to the main structures of the building and exclude all internal doors, walls and flooring.
Clearly damage to fixtures and fittings is a tenant's responsibility and tenants should refer to their own insurance policies in this regard.
Tenants should not merely assume that flooding is a risk against which their landlord is insured. In the event that the property is located on a flood plain where insurance cannot be obtained, the lease will need to be checked to see whether the lease deals with such uninsured risks.
If a tenant discovers that a landlord has failed to insure against flooding despite this being an obligation in the lease, they should seek professional advice immediately.
Commercial leases often oblige landlords to insure against loss of rent in situations where the property, or access to the property, has been damaged by an insured risk, such as flood or fire. Normally tenants will not have to pay their landlord rent while the property remains unfit for occupation or is inaccessible.
Planning permission and building regulations approval may be required for the landlord to reinstate the property which will inevitably delay the work being completed. When dealing with listed buildings, even removing flood damaged items may require listed building consent.
To protect both landlords and tenants most leases should contain a provision which states that, if the property has not been reinstated within a specified period, either party may serve a notice to terminate the lease.
BPE solicitors are staging a business recovery seminar, in conjunction with the Jelf Group on Wednesday August 15, where further information will be available for landlords and tenants. To reserve a place contact Tom Billcliff on 01242 248 282 or email tom.billcliff@bpe.co.uk
