R.TAG’s qualified building surveyors have many years of experience in negotiating and advising clients regarding dilapidations, ranging in claim value from £4,000 to hundreds of pounds, acting on behalf of landlords and tenants. Instructions to mitigate costs include both interim schedules and terminal/final schedules of dilapidations.
For your lease repairing obligations advice, please do contact us on 0121 221 2246, via email firstname.lastname@example.org or by completing the contact form.
WHAT IS A SCHEDULE OF DILAPIDATION?
A dilapidations survey is a very thorough survey which documents the state of building elements and structure down to minor wear and tear.
A dilapidations Survey is carried out by an independent building surveyor on behalf of the landlord to assess the condition of a commercial property at the end of a lease. The surveyor will subsequently provide a detailed report of the works required to restore the property back to its original condition prior to lease commencement in the form of a schedule. This also includes estimate cost of the required works.
For occupiers, having a dilapidations liability assessment enables an occupier to plan ahead and adopt a phased approach to repairs or enter into informed early negotiations with their landlord.
R.TAG building surveyors will carry out a thorough assessment meant of the occupier’s lease or licence and inspect the premises prior to preparing a detailed report identifying potential issues.
Dilapidations costs for tenants to repair, reinstate and decorate the premises at the end of a lease can run into hundreds of thousands pounds, even if they have a Schedule of Condition, which documents the state of the premises when the lease started. And dilapidations bill is often unexpected as well, as tenants are focusing on their new premises paragraph.
Having an early assessment means that you the tenant, are not caught out and are in a good position when it comes to negotiating the final bill with the landlord.
Acting early also means that you can consider undertaking the works, where even bigger savings can be made. R.TAG chartered building surveyors can assist here by putting together and managing a costed programme of works.
Schedules of condition
Considering at least of a commercial property, it is important for a prospective tenant to understand that dependent upon the terms of a lease a landlord can seek to make a claim at the end of a lease for items of disrepair or unauthorised alteration, including any items of disrepair that may exist before the lease is taken.
This is known as a dilapidations claim and can run into thousands of pounds at a time when an organisation may need capital and time to focus on the next stage of their business plan.
Unlike a Commercial Building Survey, a Commercial Schedule of Condition is not a diagnostic report intended to be a detailed evaluation as to the defects, remedial works and future maintenance issues. It is a written tabulated schedule that sets out the condition of the building element by element, area by area and is accompanied by comprehensive photographs and is used as a benchmark of the condition at the time a lease is taken. The value of this is in providing documentary evidence of the condition at the start of the lease.
For a Landlord who has invested in bringing a property into good tenantable condition prior to letting, with a tenant that has not maintained the building, it will help you to justify and resolve a claim for dilapidations at the end of the lease. This can save time and money in resolving alleged disrepair and associated legal fees.
This is essential for you as a prospective tenant who will have a liability to hand the building back in its original condition at the end of the lease term. It will help limit and resolve issues of liability for alleged disrepair or alterations at lease end. Again, saving time and money. With input from your solicitor, it is advisable to seek to negotiate that the schedule be appended to the lease with a clause that requires that the building be handed back in no better condition than as set out in the schedule.
A Commercial Schedule of Condition can be carried out instead of a Commercial Building Survey or, where the benefit of both is relevant, they can be carried out in tandem.
Read more about Specific Defect Reports below
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