lease will set out the contract terms between a tenant and landlord,
including obligations relating to the repair, decoration and alteration
of the premises. Failing to comply with these requirements either during
or at the end of the lease results in a dilapidation liability.
Interim dilapidation schedules are
issued during a lease when the landlord believes that the tenant is not
keeping up his obligations, (only when there are three or more years
outstanding on the lease) and a terminal lease is issued at the end of a
lease when a landlord alleges that a tenant has not kept his repairing
If you are terminating your lease as
either a lessor or lessee, or issuing or facing an interim dilapidation
schedule, Turner Surveyors are more than happy to help you with your
Dilapidations claims must be conducted
in accordance with the Civil Procedure Rules, and any claims must be
'fair and reasonable'. Claims must not be exaggerated.
Firstly, we will recognize who we
represent, and request the following information:
- Information as to who all the
- All documentation, such as lease,
licenses, coloured plans, agreements, letters, previous schedules.
This information may take some sourcing, but it will enable accurate
claims to be produced in the minimum time.
- What the client wants from the
dilapidations - works carried out, monetary settlement, forfeit,
tenant in court (although we must always act fairly).
- If acting for the landlord, who will
serve the notice - is there a solicitor appointed?
Our role generally includes the
- Assess the repairing, decoration,
alteration and yield-up covenants within the lease and supporting
- If working for a tenant, we will ask
for a Section 18 valuation from the outset;
- Advise as to whether it is better to
undertake certain works prior to the expiration of the lease in
order to remove or reduce the dilapidation liability, or to seek to
negotiate a financial settlement with the landlord;
- Prepare a report assessing the
dilapidation liability providing a realistic breakdown of the
- Be persistent in negotiating.
Repairs, decorations, reinstatement,
professional fees for contract administration, professional fees for
preparation of the dilapidation schedule, loss of rent, loss of service
charge, and value added tax all may form part of a dilapidation
schedule. The costs of dilapidations can be substantial, and therefore
both landlord and tenant must plan for dilapidations to ensure that the
long delays often associated with dilapidation claims can be reduced and
tenants can move on without unnecessary and substantial loss.
Dilapidations should not be ignored
until the termination of a lease. A tenant should ensure that he
complies with the terms of the lease, and should plan to maintain the
building accordingly. The obligations are clearly set out in the terms
of the lease and by careful management tenants can minimise this risk by
careful management. Turner Surveyors can assist in this process by
production of suitable maintenance