Dilapidations 

Dilapidations relate to Landlords' and Tenants' responsibilities in accordance with their lease, primarily repairing, reinstatement and decoration obligations. We work with both tenants and landlords to assess, cost, negotiate and agree dilapidations claims, and in doing so can apply a balanced view of the expectations for either side.

Whether you are a Landlord or a Tenant it is important to consider the dilapidations at every stage in the life cycle of a property so that financial obligations are understood and covenants complied with. Typical services we can provide are:

Prior to Entering a Lease:

  • Assessment and negotiation of lease repairing, redecoration and yielding-up clauses, as well as licence for alterations and reinstatement provision for tenant’s alterations.
  • Carrying out a building survey, to include mechanical and electrical installations, to assess the condition of the property at the start of the lease.
  • Providing a Schedule of Condition to record the condition of the property, with specific reference to the lease clauses.

During a Lease:

  • Planned preventative maintenance during the lease terms to comply with lease covenants.
  • Providing a Dilapidations Liability Assessment during the term to aid financial planning and lease end strategies, which may include implementing dilapidations works while still in occupation.
  • Preparing an interim schedule of dilapidations to require a tenant to comply with their repairing covenants.

End of Lease:

  • Preparing an end of lease terminal schedule of dilapidations and negotiating their settlement.

Case Studies:

Office - Gildredge Road, Eastbourne: acting for the tenant with a 5 year lease nearing expiry, we negotiated the scope of works with the landlord and advised the tenant on implementing the works prior to the end of the lease. Significant savings were made by reducing the scope of work required and omitting ‘other heads of claim’, such as loss of rent, rates and landlord's fees, that would have arisen if a financial settlement had been negotiated.

Retail - Victoria Drive, Eastbourne: we provided a Building Survey and dilapidation assessment for a client looking to purchase a small retail business with a long lease with 7 years remaining. Significant repairs were highlighted that a landlord would be able to claim at the end of term that were not reflected in the purchase price.