Glossary – F

Final Schedule of Dilapidations – The schedule will recognise items of disrepair by which the tenant will fix in order to protect the asset value to the landlord for when the lease expires

Financial Services Authority – The FSA is the regulator for the financial services industry in the UK. The FSA is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000.

Fire Certificate – A Certificate required under the Fire Precautions Act 1971 for hotels, boarding houses, factories, offices, shops and railway premises. The requirement for a fire certificate excludes buildings with less that a specified number of employees.

Fire Regulations – The workplace fire regulations bring together existing Health & Safety Fire Legislation. The regulations (amended 1/12/99) confirm employer liability and unconditional responsibility for the safety of employees in the workplace.

Fiscal Year – In the UK the March Budget covers the taxation provisions for the fiscal year, i.e., the period running from the 6th of April in any one year until the 5th of April the following year. Income Tax, Capital Gains Tax and Inheritance Tax are all computed for fiscal years.

Fit Out Costs – These costs are mainly incurred by a new tenant moving into new accommodation, main costs span from cabling, flooring, electrical to buying furniture.

Fixed and Minimum Uplift Rents – Either where rents are subject to contracted uplifts at a level agreed in the lease; or where the rent is subject to an agreed minimum level of uplift at the specified rent review.

Fixed Rate Mortgage – A mortgage where the basic interest rate is “fixed” for an agreed period of time.

Flying Freehold – A part of a freehold property that is structurally above and overhangs another person’s property or land e.g. a balcony which extends over a adjacent property.

Forfeiture – When a business tenant is in rent arrears or is in serious breach of the lease terms, then the commercial landlord will in most cases have the right to forfeit – the right to summarily end the tenancy. The landlord must however comply with section 146(1) of the Law of Property Act 1925.

Freehold – Exclusive right to have the possession and use of land or other asset’s for an indefinite period.

FRI Lease – A lease is a formal legal document entered into between a Landlord and a Tenant to create a tenancy. A Full Repairing and Insuring Lease (FRI) means that the tenant pays for buildings insurance and takes on full responsibility for the condition of the building and agrees to return the same in good tenantable order, regardless of the cost of repairs.

Furniture & Furnishings – Furniture and furnishings supplied in rental accommodation must comply with The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended). Some materials used to fill or cover furniture, particularly older and second hand furniture, may be a fire risk and often produces poisonous gases when burning, such as cyanide or carbon monoxide.

Furnished or Unfurnished? – In fact there is no legal definition of furnished, unfurnished or even part-furnished in the UK – these are terms, which have come about through practice, in reality have no industry standard.