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Reinstatement
Any alterations undertaken by the Tenant, whether to facilitate their business, or to ‘enhance’ the building will usually be subject to a reinstatement obligation in the lease. The works may have been undertaken with the Landlord’s consent by way of a Licence, albeit the licence will invariably contain a reinstatement provision requiring the Tenant to remove any alterations or modifications upon lease expiry.
We carry out a detailed review of any licences, as well as the covenant wording to ensure all works potentially in breach of this covenant are outlined. In certain instances we will be involved in negotiating a retention value, should the alteration be of any benefit to the Landlord or a future occupier.
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