In order to complete a MRO lease the POB may request that you complete a full schedule of dilapidations.
In line with your existing agreement, the POB is likely entitled to serve such notice at any time, as you are obliged to maintain the condition of the site.
If a MRO offer is requested at lease renewal, this is no big deal as you would be expected to complete such a schedule anyway.
However, if the POB serves a dilaps schedule at rent review, it can add a great additional cost. We are in the process of having the issue of whether dilaps may be used as a barrier to MRO lease completion at a rent review trigger considered by the PCA.
For advice in the meantime please get in touch.
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