What happens if you don’t compile a Schedule of Condition when entering a new lease for your GP surgery premises?

A Schedule of Condition is a detailed record of the condition of the property which is used when entering into a lease in order to limit the repairing liability upon expiration of the lease. It is therefore recommended that if you are entering into a new lease, you ensure a Schedule of Condition is undertaken before moving into the new property. We recommend that you have your own independent report produced which has a detailed record of the condition of property to limit your future liabilities rather than rely on the landlord to compile the document which is more likely to be less detailed and therefore not offer as much protection. The Schedule is then checked at the end of the lease against the condition of the building and any defects detailed in the Schedule are taken into account.

If a Schedule of Condition is not compiled when entering a lease it can lead to large dilapidations claims against the tenant for items that could have been negated through having a good, detailed Schedule of Condition in place. Typically a landlord will not want a Schedule of Condition producing, preferring instead for the tenant to be responsible for the building throughout the duration of the lease period.

Under a typical lease, it is the tenant’s responsibility to maintain the upkeep of the building through decoration and repairs. It is therefore important that the tenant has a record of the condition of the building when they moved in and what is expected of them in terms of leaving the building in the same condition as when they moved in. Without a record, disputes can arise, especially if the tenant hasn’t fulfilled their side of the lease/contract and or has made significant alterations to the property, or if alterations had been made prior to lease commencement and had not been recorded.

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