Dilapidations is an issue that occurs when a lease expires and takes into consideration the level of disrepair of a building. Disrepair can be defined as the difference in condition between a premises and one deemed in good and substantial repair. We can act on behalf of the freeholders (to serve and negotiate dilapidations) or the tenants (to negotiate dilapidations). Necessary works can then be planned or timely negotiations conducted, which will ensure that there is agreement in respect of the claim, or associated costs, at lease expiry.
When acting for landlords we are able to negotiate the level of dilapidations – whether levels of work or cost alternative, but we have to take into consideration claims cannot be made on items outside the repairing obligations.
When acting for tenants we are able to negotiate the level of dilapidations, or, if necessary, calculate any diminution of value if the level of damages cannot be agreed.
Schedules of Condition
A Schedule of Condition is a report prepared to record the actual state of a building, element by element. These can be prepared on entering into a lease or in association with works associated with the Party Wall etc Act 1996.
A Schedule of Condition should also be incorporated when a new lease is agreed, even short-term ones, as this can protect the tenant to ensure that they have an identified standard to present the property on reversion.
A Landlord may also benefit as the incorporation of a Schedule of Condition would assist in agreeing a new lease with a tenant.
|