Dilapidations claims are an important consideration throughout the term of a lease. They become increasingly important when occupiers are reaching the end of a lease term or considering implementing a break option.
To define dilapidations in practical terms, they represent an exit cost for a tenant at the end of their lease. The costs are to return the property to its original condition as set out in the lease, usually to its original pre-let state. A schedule of dilapidations is presented to the tenant by the landlord towards the end of the lease term, which can often come as an unwelcome surprise.
Dilapidations is a common area of dispute between landlords and tenants. Crucial to understanding the viability and validity of a claim is interpretation of the lease clauses and applying them to the leased property.
We have a highly experienced team in this field preparing:
- Dilapidations assessments for Financial Reporting Standard 102
- Advising on lease obligations and lease break options
- Strategic advice on negotiating options; timings and tactics
- Advising whether to undertake the works or agree a financial settlement
- Negotiating dilapidations claims with landlords and tenants
- Procurement and if appropriate managing the works
- Advising of the appropriateness of section 18 Valuations under the Landlord and Tenant Act 1927
- Expert witness and litigation support
With our team of specialist surveyors we can provide advice and support to both landlords and tenants when faced with issues involving dilapidations, costs, valuations and legal issues around lease expiry. We also provide specialist support as expert witnesses to property litigation lawyers.
For any further help or advice, please call our Enquiry Line on 020 4534 3132, or contact a member of the team direct, details below :
DD : 020 4540 7001
DD : 0121 348 7301
M : 07377 564 613
To book a call back from a member of the Dilapidations team, please fill in our Contact Us form.
See our recent articles clarifying the VAT position on Dilapidations assessments.