Property leases a flexible friend
King, Vivien
Property leases a flexible friend - 2006 - RICS Building Surveying Faculty January / February 2006, 4(1) .
Flexible leases are currently reported as being an attractive option for occupiers. Instead of a lengthy lease with 60 pages of covenants to read, this option could provide them with a simple five or six page agreement for a variable period, without stressing about rent reviews, break clauses, repairing covenants and calculating service charges. But does this make the building surveyors' job redundant? No, because even if the traditional lease is gradually overtaken by short, flexible leases there will be confusion and arguments over the meaning and effect of familiar covenants that will keep them busy. There is also the question of risk: while the burden of property risk is lower, the business risk remains, and as a consequence, tenants will continue to seek assurances from good surveyors.
Property leases a flexible friend - 2006 - RICS Building Surveying Faculty January / February 2006, 4(1) .
Flexible leases are currently reported as being an attractive option for occupiers. Instead of a lengthy lease with 60 pages of covenants to read, this option could provide them with a simple five or six page agreement for a variable period, without stressing about rent reviews, break clauses, repairing covenants and calculating service charges. But does this make the building surveyors' job redundant? No, because even if the traditional lease is gradually overtaken by short, flexible leases there will be confusion and arguments over the meaning and effect of familiar covenants that will keep them busy. There is also the question of risk: while the burden of property risk is lower, the business risk remains, and as a consequence, tenants will continue to seek assurances from good surveyors.