Dilapidations

Dilapidations

Most commercial leases provide that tenants MUST repair and decorate their demise.

If a tenant neglects to have the condition of the property recorded at the beginning of their lease there can be a very expensive and unpleasant "surprise" for them at the end. Either way, an expert Surveyor can cut their costs.

Whether you are a landlord or tenant of; offices, industrial units, or retail premises, take care of your financial future! Seek sound advice before it is too late.

We provide timely advice to ensure that claims are quickly & fairly settled.

Call 01246 296 494 for your local, experienced surveyor.
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What are Dilapidations?

Dilapidations refers to disrepair in a leasehold property. Dilapidations are financially very important for both landlords and tenants.

This disrepair happens when one party has not complied with the obligations under the leas to maintain, redecorate, or reinstate.

Landlords and Tenants often enter into a lease without regard for its condition at the outset, and with no strategy for maintaining and repairing the building. For a Landlord, the building is an income-producing asset. A Tenant is usually primarily concerned with running their business.

Neither Landlord nor Tenant is normally focussed on routine building maintenance at that stage.

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When their landlord/tenant relationship ends, for instance when the tenant leaves, the landlord will focus on matters arising from that termination. Those will almost always include the condition of the building.

A Landlord will be primarily concerned with ensuring that the building can be re-let. A Tenant will wish to leave without significant extra cost. Unless they had the foresight to consider dilapidations in advance a dispute often results. That can be stressful and costly to both.

Schedules of Dilapidations

A "schedule of dilapidations" is the basis of a dilapidations claim. 

It is a detailed list of repair, maintenance, redecoration works etc. that are needed to comply with the terms of the lease. The type of schedule served will depend upon when it is served in relation to the end of the Lease.

  • Interim schedules can be served during the terms of the Lease. They give the tenant an opportunity to remedy breaches before costs escalate. They are considered "best practice" if large claims are to be avoided later.
  • Terminal schedules are served toward the termination of the Lease. These give tenants notice fo a potential claim and allow them to remedy breaches before the Lease ends.
  • Final schedules can be served after the end of the Lease. The tenant will no longer be entitled to undertake repairs themselves. Control over what is done, and at what cost, will have passed to the landlord.