more on leaseholds

Because of experience in the past, where pubs changed hands – sometimes several times in quick succession – without repair work being done, so running down the estate, Enterprise Inns (for one pubco) now arranges for a schedule of outstanding repairs to be prepared, and usually requires the outgoing tenant to carry out those repairs before the change of ownership can proceed – thoughsometimes it allows the incoming tenant to agree to do the work, as long as money to cover the cost of that work is deposited as security. Strictly, Enterprise Inns is not allowed to do this as a condition of the consent to the transfer. However, refusing to co-operate is pretty pointless because –
(a) The alternative is to make an unauthorised assignment (very risky) or to apply to the court for a declaration that the withholding of consent is unreasonable (very expensive) and
(b) A freeholder can always serve the schedule of repairs at any time; the fact that Enterprise Inns chooses to do so when an assignment is proposed can be irritating for the seller, but it is usually good for the buyer (but see below) and does impose its own urgency on the seller doing (or paying for) the work

An exception is where the buyer does not get to see the schedule, becvause both the landlord and the outgoing tenant refuse to disclose it. This applies where the landlord decides that the work (or a sufficient part of the work) has been done by the seller and that the buyer need to commit to carrying out any work after completion of the transfer.

However, this is not the same as giving the property a clean bill of health. Often, items of work will not have ben done, or will have been bodged. While a buiyer should always get his or her own suyrvey carried out, few do, and in anyevent seeing the schedule of repairs is a useful additional piece of pre-contract information to have

As always, it comes down to buyers looking after their own interests, because neither the outgoing tenant or the freeholder will

When buying, ALWAYS have a survey carried out and ALWAYS get all equipment checked by appropriate specialists BEFORE you buy. Finding out afterwards that the roof is defective or the freezers are non-functioning or the electrics are dangerous comes as a nasty shock, as you will need to pay for repairs or replacements


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