Today saw Andrew Morley, MD of Property Solutions – a Bellrock Group Company – presenting at a Federation of Corporate Real Estate breakfast event kindly hosted at Rapleys offices in Piccadilly.
Andrew took on the question: “Ageing stock and shorter leases … who pays the bill?”
Understandably, landlords wish to refurbish/renew major items of ageing fabric/plant within their assets and tenants want – for budgeting purposes – costs that are as “flat line” as possible. How the two are handled in the light of ever shortening lease lengths and how the situation is reflected in the management of service charge accounts was set out by Andrew before taking questions from the people present. With helpful input from individuals from the RICS and other points raised, the discussion ranged from apportionment considerations to the drafting of leases. Transparency and communication, it was suggested, are the most important ingredients to avoiding disputes over the recoverability of costs at a later stage.
Thanks again to the Federation of Corporate Real Estate and Rapleys for a thoroughly good morning.