Landlord’s repair objectives

The key aim for the landlord is to maintain the value of its investment by:

1. •

   ensuring that its property does not fall into disrepair, and

2. •

   having an institutionally acceptable tenant's full repairing covenant (and, if applicable, service charge provisions) in the lease

Tenant’s repair objectives/Questions for tenants to ask about repairs at heads of terms stage

The tenant is likely to find it difficult to convince the landlord to accept anything less than an obligation to keep the premises ‘in good and substantial repair and condition’ (or a similar variant of it) as this is the institutionally acceptable position; having a lease without it will affect the marketability of the landlord’s asset. The tenant may, however, be able to modify the clause if the premises are old or in poor condition, if the market is difficult, or if the term is very short (eg less than 3 years).

The heads of terms are likely to state simply that the lease will be ‘full repairing’ (also sometimes referred to as ‘FRI’ (full repairing