Dilapidations
Acting for landlords and tenants on dilapidations claims across commercial property. We assess liability, review schedules and negotiate settlements at lease end and beyond.
What are dilapidations?
Dilapidations are claims that arise when a tenant has not met the repair, redecoration or reinstatement obligations set out in their lease. They most commonly occur at lease end, though claims can also arise during a tenancy. If obligations have not been met, a landlord may seek financial damages to cover the cost of putting the property back into the required condition.
How We Can Help
We act for both landlords and tenants. Select your position to find out how we approach your situation.
As a landlord, dilapidations claims need to be well-evidenced and properly quantified to withstand challenge and achieve the best possible settlement. Starting the process early gives you far more leverage than waiting until lease expiry.
Schedule of Dilapidations
We prepare a detailed terminal schedule of dilapidations setting out all breaches of the tenant's repairing and decorating obligations, with costed remedies for each item.
Interim Dilapidations
Where a tenant is failing to maintain your property during the lease term, we advise on your rights and options, including the preparation of interim schedules and notices.
Negotiation and Settlement
We negotiate directly with the tenant's surveyor to reach a fair and well-evidenced settlement, drawing on the relevant lease terms, comparable evidence and statutory caps.
Acquisition Due Diligence
When acquiring an investment property subject to an existing lease, we advise on the dilapidations liability profile and how it affects the value of the asset.
As a tenant, a dilapidations claim from your landlord can appear much larger than your actual liability. Early advice, a well-prepared counter-schedule and knowledge of your statutory protections can significantly reduce what you pay.
LEASE REVIEW AND LIABILITY ASSESSMENT
Before inspecting the property, we carry out a thorough review of all lease documentation to establish exactly what your repairing and decorating obligations actually are.
COUNTER-SCHEDULE
We inspect the property and produce a detailed counter-assessment of the landlord's claim, challenging items that are overstated, outside the lease obligations or incorrectly quantified.
SECTION 18 CAP ADVICE
Under Section 18(1) of the Landlord and Tenant Act 1927, damages for dilapidations cannot exceed the diminution in value of the landlord's reversion. We advise on how this cap applies to your claim.
NEGOTIATION AND SETTLEMENT
We negotiate directly with the landlord's surveyor to reach a fair settlement, protecting your position and ensuring you do not pay more than you are legally obliged to.
Whether you are a landlord or tenant, our overarching advice is the same: consider dilapidations as early as possible, well ahead of lease end. Early engagement gives us the most time to identify and implement the right strategy, and typically leads to a better outcome for all parties.
Why Early Advice Matters
Dilapidations liabilities are often misunderstood. Engaging a surveyor well before lease end gives both landlords and tenants far more options and far better outcomes.
More Time to Plan
Early engagement means more time to identify the right strategy — whether that is carrying out works, negotiating a financial settlement or challenging a claim. Leaving it to the last minute reduces your options significantly.
Better Financial Outcomes
For tenants, carrying out works during the lease is almost always cheaper than paying a financial settlement after expiry. For landlords, issuing an interim schedule can incentivise a tenant to maintain the property throughout the term.
Lease Assignment and Acquisition
We advise on dilapidations liability when a lease is being assigned or a commercial property acquired, ensuring any exposure is properly understood and factored into the deal.
Know Your Statutory Protections
Both landlords and tenants have statutory rights and limitations that significantly affect dilapidations claims. We make sure clients understand their legal position from the outset.
