job reference: xxxx property report xxx london sw4 xxx · condition for xxxx london. sw4 xxx. we...
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JOB REFERENCE: XXXX
PROPERTY REPORT
XXX
XXX
London
SW4 XXX
FOR
Mr X
Prepared by:
XXXXX
INDEPENDENT CHARTERED SURVEYORS
XXXX London. SW4 XXX
XXXX
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CONTENTS
Introduction page 3
Synopsis page 3
Summary of Construction page 5
Executive Summary page 7
Summary Upon Reflection page 18
Report Format and Information page 19
Facilities page 23
Limitations page 26
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INTRODUCTION
We have been instructed to inspect and prepare a Report and Schedule of
Condition for XXXX London. SW4 XXX. We inspected the property on
XXXX and again on XXXX.
The Property Report gives you advice on what we consider are the key
property issues.
The Schedule of Condition relates to the lease you are considering and will
limit your liability if legally appended to the lease. This helps protect you
against future dilapidations claims.
Dilapidations defined:
Dilapidations is a legal claim against someone who had a lease with
regard to the terms and requirements within the lease. Your Legal
Advisor should fully inform you about Dilapidations claims.
We assume the property is being let on a standard Full Repairing and Insuring
Lease (FRI) and that any unusual or onerous clauses will be brought to our
attention by your solicitor before legal commitment to purchase the property.
You should hand soft copies of these documents to your Legal Advisor for
their perusal and comment.
The work has been carried out as per our standard Terms and Conditions of
Contract which have been emailed to you as part of the confirmation of our
instructions. If you would like further clarification please do not hesitate to
contact us.
SYNOPSIS
SITUATION AND DESCRIPTION
This is a three storey detached Public House situated in a mixed area of
residential and commercial property. The original property has been extended,
amended and altered over the years many times. There is a beer garden area to
the front and a courtyard area to the rear. There is no parking at the premises.
If the age of the property interests you your Legal Advisor may be able to find
out more information from the Deeds.
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Location Plan
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SUMMARY OF CONSTRUCTION
External
Chimneys:
Main Roof:
Rear Roofs:
Roof Structure:
Parapet walls:
Numerous brick chimneys
Flat asphalt
Asphalt and Felt roofs
Cut timber flat roof
Brick
Gutters and Downpipes:
Mixture of Cast Iron and Plastic
Soil and Vent Pipe:
Walls:
Fascias and Soffits:
Cast Iron
Mixture of Flemish Bond brickwork and Cavity
Stretcher Bond Brickwork (assumed)
Painted timber
External Detailing: Sliding sash timber single glazed windows
Internal
Ceilings:
Likely to be lath and plaster (assumed)
Walls Solid and plastered (assumed)
Floors: Basement:
Ground Floor:
First and
Second/Top Floors:
Concrete (assumed)
Joist and floorboards (assumed)
Joist and floorboards (assumed)
Services
We have been advised by the existing leaseholder that the property has a mains water
supply, drainage, electricity and gas. The electrics are located in various locations with the
main electrics appearing to be in the cellar area to the left side. The wall mounted Potterton
boiler is located in the kitchen on the first floor.
We have used the term ‘assumed’ as we have not opened up the structure.
Finally, all these details need to be checked and confirmed by your Legal Advisor.
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EXTERNAL PHOTOGRAPHS
Rear view Front Elevation
Left View
Front view
Front Beer Garden
Right Elevation
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EXECUTIVE SUMMARY
Summaries are not ideal as they try to précis often quite complex subjects
into a few paragraphs. This is particularly so in a summary about someone’s
future business when we are trying to second-guess what your priorities are, so
it is important the Report is read in full.
It is inevitable with a report on a building of this nature that some of the issues
we have focussed in on you may dismiss as irrelevant and some of the areas
that we have decided are part of the ‘character’ of this property you may think
are very important. We have taken in the region of 300 photographs a CD
copy of all photographs is enclosed) during the course of this survey and many
pages of notes, so if an issue has not been discussed that you are interested in
or concerned about, please phone and talk to us before you purchase the lease
(or indeed commit to purchasing the lease), as we will more than likely have
noted it and be able to comment upon it. If we have not we will happily go
back. Having said all of that, here are our comments:
We are concerned that the implications of taking on a Full Repairing and
Insuring Lease have not been explained to you and we would refer you to your
Legal Advisor with regard to this matter.
When taking on a lease we believe there are three key areas (talking from a
Chartered Surveyors point of view), these are:
The Business
Only you can decide upon the true potential of this property for your business
and its value to you; although we do recommend taking independent advice on
the market value and this identifies what the typical user would pay.
The Lease
The quality of the lease needs to be discussed with your Legal Advisor and
understood. You need to understand your rights, responsibilities and liabilities
when you sign for a lease of this nature. We ask that your Legal Advisor
brings any onerous or unusual clauses to your and our attention before legal
commitment to purchase. For the purpose of this report we have assumed this
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is a standard full repairing and insuring Lease.
The Property
There are many aspects to look at property-wise, both from its condition at the
moment, to its condition in relation to the lease and its future condition.
You are currently reading the Property Report which is intended to advise you
on the property element of the purchase. We will also provide you with a
Schedule of Condition, which will enable you to agree with the Landlord the
condition of the property when you start to lease it and should be signed and
appended to the lease.
The Summary
The Summary is divided into the good, bad and the ugly or as we have titled
the sections here plus points, medium priority and high priority. This is to
enable you to get a better understanding of the potential and issues with the
property.
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Plus Points
Survey reports often are full of only the faults and general ‘doom and gloom’, so we thought
we would start with some positive comments on the property!
To summarise these into plus points:
1.0 ) This is a period property with many original features.
2.0) The property is a reasonable size albeit the commercial catering
kitchen is located on the first floor.
3.0) The separate private living accommodation including its own
domestic kitchen although the fire escapes need to be checked with
the Fire Brigade/Local Authority.
We are sure you can think of other things to add to this list.
Medium Priority
Problems / issues raised in the ‘medium priority’ section are usually solvable, but often
need negotiation upon. However, a large number of them may sometimes put us off the
property.
1.0) General disrepair
The property has not been left to the
standard that we find in most Full
Repairing and Insuring Leases.
We would have expected the
dilapidations to be more
comprehensive and to have required
more work than the work we can see
being carried out. For example fairly
typically within all leases we have seen
there is a redecoration covenant which
requires full redecoration externally and
internally and associated repairs which
clearly are not being carried out. For
Rot to base of rear left side
Fire Exit door
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example many of the windows have deteriorated and have not been
eased, adjusted and repaired prior to redecoration.
Typically with a Full Repairing and Insuring Lease we would expect a
three to five year Redecoration and Repair clause.
ACTION REQUIRED: To meet the requirements in standard Full
Repairing and Insuring Leases you will need to repair, prepare and
redecorate external joinery including splicing in new timber where
timber is rotten together with easing and adjusting all windows.
ANTICIPATED COST: Costs for windows, fascias and soffits and
other external decoration, remembering you are likely to need
scaffolding to carry out some of the work, to meet the Full Repairing
and Insuring covenants you will be responsible for from day one we
believe is in the region of £10,000 to £20,000; please obtain
quotations.
2.0) Large areas of flat roofs
Flat roofs are renowned for problems,
unfortunately these roofs are likely to
require repair and renewal over the
time of the Lease as we can already see
some deterioration.
We can see at present cracking and
various other areas of deterioration
particularly around the flashings.
Main flat roof
Rot to window sill Rot to fascia at rear of the property
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Finally we would add that these flat roofs, as with any flat roofs of this
age, are unlikely, in our experience, to have any insulation which will be
an additional expense to heat the property and in addition to this you
may have to insulate the property as part of future Regulations. The
addition of a warm flat roof would we believe be the easiest option.
ACTION REQUIRED: Ad hoc repairs to the flat roofs, particularly
to the flashings on the left side which can be seen to be coming away
on the main flat roof. We would start by clearing all roofs of debris,
etc we noticed chairs on one of the rear roofs which of course can
cause point loading which in turn can cause damage to the roof.
ANTICIPATED COST: To carry out repair work assuming no
scaffolding is required £5,000 to £10,000 over the next few years;
please obtain quotations. We would add that this is very unusual to
have this amount of flat roofs.
3.0) Internal alterations
As with many public houses and
properties of this era there have been
many internal alterations. We could see
that the internal alterations have opened
up the bar at ground floor level and also
at second/top floor level alterations
have taken place with removal of walls
and reconfiguration in this area. This
alteration appears to have left the roof
Gap in flashings Asphalt cracking
Wall removed second/top floor
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not as well supported as we would require today. We could see that
walls have been removed without piers being added and the thickness of
the beams look smaller than what would be used today.
ACTION REQUIRED: Further investigation needs to take place
including opening up of the structure. We noted hairline cracking
which we discuss next.
4.0) Hairline cracks visible in front middle bedroom on second/top floor
(All directions given as you face the property from the front)
We noted hairline cracking visible in
the front middle bedroom on the
second/top floor indicating that there
may be some movement to the front of
the property and possibly some
rainwater ingress from the flat roof
above.
It is fairly common in this type of
property to have problems with lateral
restraint and some movement in the
external walls where they are no longer
tied into the internal walls or the joist
feet.
5.0) Environmental Health Issues and Standards
5.1) Kitchen
We believe that the catering kitchen
requires a deep clean and also some
repairs to the Altro style flooring. The
catering kitchen also does not have such
items as fly screens to doors and
windows and we could see when
cooking is carried out the extraction
could be improved.
Catering kitchen
Hairline cracking
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5.2) Cellar
Within the cellar we could see that the
ceiling has completely deteriorated.
There is a suspended ceiling which we
do not normally come across in cellars
(the type that you typically see in older
offices).
ACTION REQUIRED:
Kitchen: We would recommend a
deep clean and possibly re-grouting
of the tiles, repairs to Altro flooring
together with the addition of fly
screens.
Cellar: We recommend a complete
new ceiling is required in this area
and also removal of mould to walls
and possibly a floor paint.
Environmental Health Officer
meeting
We also recommend meeting with the Environmental Health Officer
prior to legally committing to lease the property and ask for any
copies of past Environmental Health certificates or request directly
from Environmental Health Department. (You advised that the
Business Development Manager for the pub company has said that
Environmental Health Standards are okay but is not the same as
seeing copies of Environmental Health certificates yourself).
6.0) Sight of Dilapidations Report
We have not seen a copy of the Dilapidations Report. The existing
landlord seemed, in our opinion, unhappy to find a copy for us at the
time of our inspection although you have since advised us that you have
a copy.
Missing sections of suspended
ceiling, also mould and staining
visible
Damp in cellar walls
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In our experience pub companies often serve light Dilapidations i.e.
Dilapidations that do not fully commit the landlord to carry out all their
obligations as set out within the lease. Whilst we could see some work
has been carried out here it is not to the standard that we would
normally expect to see.
ACTION REQUIRED: We would ask that a copy of the
Dilapidations Report served upon the existing pub operation is
forwarded onto us electronically.
Additionally we would comment that we would not recommend legally
taking on the Lease until your Legal Advisors and ourselves as
Chartered Surveyors have viewed the Dilapidations document.
7.0) Dilapidation painting work being carried out
When we returned to the property we could see that paint was literally
being put over the old paint without any preparation. This paintwork
was being carried out on the first floor level.
8.0) Graffiti
An example of a Dilapidations element
that has not been carried out - graffiti
There is an above average level of
graffiti to the property all things
considered. The graffiti is present to
the sides of the property under the
terms of the Dilapidations this would
have to be removed.
Graffiti to left side of property
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9.0) Services
Electrics
There are areas where the electrics are
dated.
When we carried out an earth test in the
domestic kitchen on the second/top
floor the electrics failed and tripped the
electrics.
ACTION REQUIRED: We
recommend an Institute of
Electrical Engineers standards
(IEE) recommend a test and
report should be carried out by
an NICEIC registered and
approved electrical contractor or
equivalent.
ANTICIPATED COST: Test
and report plus associated repairs
we expect to be in the £2,500 to
£7,500 range; please obtain
quotations.
We also make the comment that on leaving the property it is a normal
requirement to have a full set of tests and reports generally on service
equipment including the electrics.
Earth test in domestic kitchen
failed
Fuseboard
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High Priority
We normally put here things that we feel will be difficult to resolve and will need serious
consideration.
Whilst there is nothing specifically which we feels falls within this
category we believe that there is concern that the existing Dilapidations
work is not being carried out and there is a large future liability with this
property.
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Other Items
Services
We have reported earlier about the services but we do need to reiterate that
this survey does not include any specialist reports on the electricity supply and
circuits, heating or drainage, as they were not requested. The comments that
follow are based upon a visual inspection carried out as part of the overall
Survey.
Services and specialist installations have been visually inspected. It is
impossible to examine every detail of these installations without partially
dismantling the structure. Tests have not been applied. Conclusive tests can
only be undertaken by suitably qualified contractors. The vendor/seller should
be requested to provide copies of any service records, test certificates and,
ideally, the names and addresses of the installing contractors.
The owner/landlord/last lessee should provide you with tests and reports in
relation to:
1. Electrics – An Institute of Electrical Engineers standards (IEE)
test and report to be carried out by an NICEIC registered and
approved electrical contractor or equivalent.
2. Space heating inspection and test report (you need to see these in
working order)
3. Asbestos report with samples.
4. Drainage – closed circuit TV camera report. We have not tested
the drains.
5. Environmental Health certificates.
6. Any other specialist testing such as for the dumb waiter.
7. Anything specific to this particular unit.
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The Summary Upon Reflection is a second summary so to speak, which is
carried out when we are doing the second or third draft a few days after the
initial survey when we have had time to reflect upon our thoughts on the
property. We would add the following in this instance:
We would have liked to have seen the Dilapidations Report together with a
copy of the Lease to comment further although we do appreciate the minimal
time available as you are looking to complete on XXX with us viewing the
property on XXXX.
We would recommend that you telephone us with regard to any issues. We
have worked over the weekend to meet your requirements; this Report has not
had the usual checks that our Reports would normally have.
We would ask that you read this Property Report and the Schedule of
Condition and contact us on any issues that you require further clarification on.
SUMMARY UPON REFLECTION
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REPORT FORMAT AND INFORMATION
To help you understand our Report we utilise various techniques and different
styles and types of text, these are as follows:
ACTION REQUIRED AND RECOMMENDATIONS
We have used the term ACTION REQUIRED where we believe that there
are items that you should carry out action upon or negotiate upon prior to
purchasing the Lease.
Where a problem is identified, we will do our best to offer a solution.
However, with most building issues, there are usually many ways to resolve
them dependent upon cost, time available and the length of time you wish the
repair/replacement to last.
EVERY BUSINESS TRANSACTION HAS A RISK
Every business transaction has a risk, only you can assess whether that risk is
acceptable to you and your circumstances.
AGENT / BUSINESS DEVELOPMENT MANAGER – FRIEND OR
FOE?
It is important to remember that the agents are acting for their client and not
the purchaser. We, as your employed Independent Chartered Surveyor,
represent your interests only.
SOLICITOR/LEGAL ADVISOR
To carry out your legal work you can use a solicitor or a legal advisor. We
have used both terms within the report.
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TERMS OF ENGAGEMENT/LIMITATIONS
This report is being carried out under our terms of engagement, as agreed to
and signed by you. If you have not seen and signed a copy of our terms of
engagement please phone immediately.
OUR AIM IS ONE HUNDRED PERCENT SATISFACTION
Our aim is for you to be completely happy with the service we provide, and we
will try and help you in whatever way possible - just phone us.
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If you would like any further advice on any of the issues discussed (or indeed
any that have not been discussed!) then please do not hesitate to contact us on
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APPENDICES
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FACILITIES (All directions given as you face the property)
We have included a list of the facilities that we have viewed. The following
gives a general overview of the property.
Basement:
1.0) Cold cellar
2.0) Main cellar
3.0) Wine store
4.0) General store.
Ground Floor Trading area:
Front of House
5.0) Entrance lobby area (internal)
6.0) Open plan bar
7.0) Central bar servery
8.0) Ladies Toilets (rear)
9.0) Gentlemen’s Toilets (rear)
10.0) Disabled/less able Toilets (middle, rear)
Back of House
11.0) Access stairs
First Floor:
12.0) Toilet
13.0) Bathroom
14.0) Office (front left)
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15.0) Bar/Function room/Lounge (right)
16.0) Catering Kitchen (far right)
Second/Top Floor:
Private Living Accommodation
17.0) Stairs
18.0) Domestic Kitchen/Dining Room (right)
19.0) Corridor
20.0) Bedroom One (middle)
21.0) Bedroom Two (left)
22.0) En suite to Bedroom Two
Boundaries
1.0) Front: Beer garden area to footpath
2.0) Left side: Alleyway
3.0) Right side: adjoins grassed area, we assume for the multi-occupied
low rise property to the side.
4.0) Rear: Boundary wall.
Note, we have not seen a copy of the Deeds and assume the boundary is to be
as visually set out above.
Your Legal Advisor to check and confirm boundaries and your legal rights
with regard to access, parking and permitted hours of work.
XXXX London. SW4 XXX
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Letter Dear Mr X
Ref: Property Report and Schedule of Condition XXXX, London. SW4 XXX
Further to our two meetings on XXX, telephone discussion with
your father and various discussions with our office.
We have prepared a Property Report (which is a brief
Commercial Building Survey) and a Schedule of
Condition. The purpose of the Property Report is to identify any
issues such as structural issues and the purpose of the Schedule of
Condition is to limit your liabilities and should be legally appended
to the Lease. Both of these Reports can be used to negotiate to reduce the price
of the property. Again in the current market we would not recommend and
indeed we do not believe that a tenant has
to take on any Lease without a Schedule of
Condition legally attached to the Lease.
We would also add that in the current market we
are seeing rental prices
reduced and as it is a tenant’s market
we are also seeing far greater use
of Schedules of Condition which are
after all, in our opinion, the only fair way to
establish the condition of the property when you
take the property on and limit your liabilities.
We remind you of our discussion where we explained that your liability literally starts from
day one and relates to the condition of the property as stated within your Lease not as the condition
on day one you took on the property unless a Schedule of Condition is legally attached to the Lease
(in our experience usually organised by your Legal Advisor).
Given the limited time please read the Property Report in full and the Schedule of Condition and
contact us immediately.
We would also advise, as explained to you, that the very short time scale that you have requested
these reports are carried out in means we cannot carry out our normal second checking process on
the reports. We have only carried out these reports to the limited time scale due to your insistence
on your XXX deadline, we would have much preferred to have this deadline extended and
recommended this.
May we take this opportunity to thank you for commissioning us to carry out this survey and hope
that we may be of assistance to you again at some stage in the future.
XXXX London. SW4 XXX
XXXX
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LIMITATIONS
CONDITIONS OF ENGAGEMENT
The report has been prepared in accordance with our Conditions of
Engagement dated XXXX and should be regarded as a comment on the overall
condition of the property and the quality of its structure and not as an
inventory of every single defect. It relates to those parts of the property that
were reasonably and safely accessible at the time of the inspection, but you
should be aware that defects can subsequently develop particularly if you do
not follow the recommendations.
ENGLISH LAW
We would remind you that this report should not be published or reproduced in
any way without the surveyor’s expressed permission and is governed by
English Law and any dispute arising there from shall be adjudicated upon only
by the English Courts.
SOLE USE
This report is for the sole use of the named Client and is confidential to the
Client and his professional advisors. Any other persons rely on the Report at
their own risk.
ONLY HUMAN!
Although we are pointing out the obvious, our Surveyors obviously can’t see
through walls, floors, heavy furniture, fixed kitchen units etc. they have
therefore made their best assumptions in these areas.
As this is a one off inspection, we cannot guarantee that there are no other
defects than those mentioned in the report and also that defects can
subsequently develop.
XXXX London. SW4 XXX
XXXX
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WEATHER
It was a dry and cold day at the time of the inspection. The weather did not
hamper the survey.
NOT LOCAL
It should be noted that we are not local surveyors to this area and are carrying
out the work without the benefits of local knowledge on such things as soil
conditions, aeroplane flight paths, and common defects in materials used in the
area etc.
INSPECTION LIMITED
Unfortunately in this instance our inspection has been very limited due to:-
1) We have had a limited view of the roofs.
2) The fixtures and fittings and stored items limited our view internally.
3) We have not had access to the first floor bathroom.
BUILDING INSURANCE
We do not advise with regard to building insurance. You need to make your
own enquiries. Some areas may have a premium, some buildings may have a
premium and some insurers may be unwilling to insure at all in certain areas.
You need to make your own enquires prior to committing to purchase the
property. Please be aware the fact a building is currently insured does not mean
it can be re insured.
We would comment that non-insurability of a building we feel will affect lease
value.
ACTION REQUIRED: You need to ensure that the leaseholders have
adequate insurance.
XXXX London. SW4 XXX
XXXX
Independent Chartered Surveyors
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TERMS AND CONDITIONS
Our computer system sends two copies of our Terms and Conditions to the
email address given to us when booking the survey; one has the terms attached
and the other has links to the Terms and Conditions on our website (for a
limited time). If you have not received these please phone your contact
immediately.