Posted: Thursday 2 August 2012
By Hugh Angus
A few months ago I wrote a short blog questioning whether a full repairing and insuring lease was really the best document for a short-term lease. In the Estate Gazette on 21 July Darina Kerr and Alan Wernham of Dundas & Wilson discussed the topic.
Let us remind ourselves what a full repairing and insuring lease means. The tenant is responsible for repairing, maintaining, renewing and rebuilding the property. The only risks that are retained by the landlord are those which are to be insured against by the landlord to the extent that cover is available. Shortfall has usually been the landlord’s responsibility. In more modern leases if there is damage by an uninsured risk either party may be able to terminate. If there is damage by an insured risk the property is to be reinstated in substantially the same form.
Here are some reasons why I think a short lease should rarely be on full repairing and insuring terms.
Of course the move to shorter leases with the landlord taking on more repairing obligations leads to different issues.