Dilapidations Charter
For Ei Publican Partnerships and subsidiary companies (including Unique Pub Company Ltd)
Key objectives
To provide an evolutionary review of our approach to dealing with Dilapidations, where publicans and other key stakeholders are given clear guidance on what constitutes a Dilapidations matter, when this will apply during the term of an agreement and what they can expect from us.
ei publican partnerships core commitments
What you can expect
In delivering this Charter, ei publican partnerships has 4 core commitments:
- To provide simplicity in all Dilapidations matters, free of legal jargon and aimed at providing clarity to all stakeholders.
- To act fairly and professionally in all matters.
- To apply a commercial approach to all Dilapidations issues, ensuring that the overriding objective is always to maintain the business premises in a condition so that they can be re-let quickly on similar terms in the current marketplace.
- To act consistently in all matters, regardless of geographical location or personnel.
Dilapidations: what are they and when do they apply?
Dilapidations will arise at 3 specific points during the lifecycle of a lease:
1. During the term of a lease
The publican will be expected to keep the business premises in a safe, compliant and maintained condition. The guidelines relating to these responsibilities will be those as set out in the lease repairing obligations.
We will always aim to assist publicans throughout the lifecycle of their agreement to prioritise repairing obligations in order that these are dealt with pro-actively, so that the premises is always maintained in its optimum condition for the market within which it operates.
2. At the end of a lease
The publican must hand back the premises in good and tenantable repair and condition so that it is capable of being re-let on a similar agreement and equal terms, without lengthy time delays resulting from its condition. In general terms, the publican is responsible for repairing and maintaining the property. Again, the guidelines relating to these responsibilities will be those as set out in the lease repairing obligations.
At the point when an agreement is due to expire, or an early exit arrangement is agreed, we will inspect the premises to ensure that it has been maintained within the terms of the lease repairing obligations. Issues arising out of this inspection will be brought to the Publican's attention early enough to provide the opportunity to remedy these prior to their departure.
3. Assignment
Should a publican choose to sell (assign) their interest in the business, the repaired condition of the premises will be an important factor.
We will inspect the premises to ensure that it has been maintained within the terms of the lease repairing obligations.
This process should be seen as assisting publicans to offer up the premises in a condition to support them achieving the optimum market value for the lease. Furthermore, this will also ensure that the building is in a safe and compliant condition for the new occupants. Issues arising out of this inspection will be brought to the publican's attention early enough to provide the opportunity to remedy these prior to the sale of their lease.
Core commitments and protocols
The following core commitments and protocols will be applied during all of ei publican partnerships future Dilapidations negotiations.
Timescales
We will always aim to inspect the business premises, assessing any Dilapidations due and agreeing this with the publican several months prior to the end of the agreement or assignment. This will always be dependant on good quality communication, and as such, publicans should aim to provide us with the earliest possible notice of their proposed departure.
Subscription to Ei Publican Partnerships standard packages
Ei Publican Partnerships offer a range of service and support packages (Safety Management Solution, Cellar Cooling, Heating & Boiler Maintenance). The packages are available for an annual subscription and each includes an annual inspection by suitably qualified professionals. Completion of any works identified as a result of these inspections can help ensure that any dilapidations charges are kept to a minimum. Full details of these services can be found
here.
Repairs and maintenance funds
On all new agreements, we will establish the level of Repairs and Maintenance Fund to be applied at any given premises, agreeing this with the publican prior to the commencement of a new agreement. All Repairs and Maintenance Funds will be index linked to take account of periodic increases in construction industry rates. Where payments into the fund are diligently maintained at the pre agreed level, it is anticipated that the publican will have a source of funding to maintain the premises in reasonable repair and condition. This will provide significant assistance in the management of any future Dilapidations liabilities.
Dilapidations capped at true cost to re-let
The level of Dilapidations to be applied at any given premises, will never be greater than the sum required to re-let the premises on a similar style agreement and terms in the prevailing market place.
Dilapidation of tenants' fixtures and fittings
In the event that the fixtures and fittings is wholly owned by the Retailer, Ei Publican partnerships will not levy any Dilapidations against these items. In circumstances where Tenants' fixtures and fittings are being rented off us as part of a tenancy style agreement, we will inspect these items to ensure that they are being handed back in reasonable condition, fair wear and tear accepted. Dilapidations will only be charged against obvious signs of vandalism or malicious damage.
In the event of a dispute
Where a dispute arises between parties over the level of Dilapidations to be applied, we will provide access to a recognised, independent dispute resolution service, and will agree to pay 50% of their associated fees (not exceeding £500).