WHAT ARE DILAPIDATIONS
The term dilapidations apply to breaches of commercial property leases repairing covenants, (usually by the tenant) and the process of remedying the breaches. A Schedule of Dilapidations is the formal listing of the alleged breaches.
Understanding the importance of dilapidation surveys is crucial to safeguard your business and avoid potential significant losses.
THE DILAPIDATIONS SURVEY PROCESS
A qualified building surveyor first conducts a thorough inspection of the property, documenting any existing defects, cracks, or damage to the building.
A comprehensive report (the Schedule of Dilapidations) is prepared either at the end of a lease (terminal schedule) or during the course of the lease (interim schedule). This report outlines the repairs required to comply with lease covenants and forms the basis of negotiations between landlords and tenants to reach an agreed scope of works or suitable financial settlement.
A schedule of condition may have been prepared at the lease commencement to summarise the state of repair of the property. This document may limit the tenant’s liability and will need to be reviewed.
WHY FOCUS?
Whilst many surveyors and solicitors are capable of undertaking dilapidations work, the area is increasingly more specialised, and for the best results experienced surveyors and solicitors should be appointed.
We have extensive experience of all such matters and recognize the importance of navigating dilapidations with suitable expertise and diligence. If you are a Landlord or Tenant approaching the end of a lease, or are concerned about the repairs required during the term, for expert guidance in navigating the dilapidations process and ensuring compliance with legal obligations, please contact us.
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