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Dilapidations Advice for Landlords and Tenants

What is Dilapidations?

Dilapidations issues occur when a commercial tenant is found to be in contravention of their Leasehold obligations, and generally relate to breaches of reinstatement, repair, redecoration and statutory covenants.

If a landlord has or may suffer a loss as a consequence of any breach, they have the right to be compensated.

Allied Surveyors are independent experts in the complex and specialist field of Dilapidations and understand the interrelationship between buildings and can advice you on all aspects of leases, legislation and case law.

How can Allied Surveyors help?

Allied Surveyors are independent experts in the complex and specialist field of Dilapidations and can guide you through the Dilapidations Process.

Allied Surveyors can help with:

  • Your Rights - Understanding the rights of both the Landlord and the Tenant.
  • Pre-Lease - Advice on how to minimise the financial implications, if disputes occur at the end of the lease.
  • Building Survey - Provide a Building Survey to give a clear understanding of the condition of the property and defects likely to occur during the lease.
  • Schedule of Dilapidations - Record any possible breaches of covenant and identifies appropriate remedies.
  • Schedule of Condition - Formal report of the condition of the property before lease commencement.
  • Schedule of Works - Produce a costed schedule of works for both Repairs Notices and Terminal Schedules.
  • Negotiate - Help agree a fair and reasonable figure based on the landlord’s actual loss.

What is a Schedule of Dilapidations?

A Schedule of Dilapidations records any alleged breaches of covenant and identifies appropriate remedies which ultimately could form the basis of legal proceedings if neither party is able to reach a negotiated settlement.

What is a Schedule of Condition?

A Schedule of Condition is a formal document that records the condition of the property before lease commencement.

Without a Schedule of Condition the original state of the property is hard to identify and can become largely irrelevant during dilapidations negotiations and result in a more onerous settlement for a tenant.

Where do Allied Surveyors carry out Schedule of Dilapidations?

Allied Surveyors carry out Schedule of Dilapidations nationwide.

Our office specialises in the greater West Midlands area including; Birmingham, Coventry, Staffordshire and Redditch. We also cover Shropshire, Central Wales and the Welsh Border.

Standard Advice for Landlords & Tenants

  • Any financial settlement must only relate to actual loss incurred as a result of the tenant’s failure to comply with their lease.
  • A Landlord cannot expect a building to be returned to ‘as new’ condition, only to the same condition as stated by the lease covenants.
  • A Building Survey is an ideal tool for understanding the condition of the property and the risks from the outset.
  • A Schedule of Condition can be beneficial as a record of the condition of the property at the start of the lease and should simplify dilapidations negotiations at the end of the lease.
  • Landlords have the right to enforce covenants during the lease term by serving a Repairs Notice on a tenant.
  • If the tenant fails to comply with a Repair Notice the Landlord may re-enter the property to carry out important works and reclaim costs, from the tenant, as a debt.
  • Undertaking dilapidations works may be a cheaper option than being faced with a potentially large dilapidations claim.
  • Failure to comply with dilapidations liabilities can, in some cases, invalidate a leases break clause.
  • A dilapidations specialist will advise on the accuracy of the landlord’s costings, as well as the legitimacy of the alleged breaches.

The Dilapidations Process

  1. The Landlord appoints a dilapidations surveyor to perform a Schedule of dilapidations.
  2. The Schedule of Dilapidations is served on the tenant.
  3. The Tenant instructs a surveyor to act on their behalf and uses any Schedule of Condition to validate the claim.
  4. The Tenant either undertakes the works or agrees a settlement.
  5. Completion of the dilapidations process.

How do I get a Schedule of Dilapidations?

The cost of preparing a Schedule of Dilapidations is dependent of the type, size and complexity of the property.

If you would like to find out how much a Schedule of Dilapidations may cost you, why not contact us?

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