Get Expert dilapidations Advice
Many landlords will instruct a building surveyor to set out a schedule of dilapidations prior to the end of a tenants lease so that both tenant and landlord are fully aware of the tenants repairing, decoration and reinstatement responsibilities under the lease. This enables them to prepare and plan for a smooth lease end and to negotiate a satisfactory settlement if the tenant is unable to meet their lease obligations.
Dilapidations are more commonly used for commercial leases. Without the security of the schedule a landlord could face financial loss in the event that premises such as a retail shop or warehouse unit were vacated and left in a state of disrepair with the landlord unable to rent it out immediately.
DILAPIDATIONS FOR TENANTS
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Provisioning as either a Landlord or a tenant, having an understanding of what the potential cost extent of a lease end dilapidation claim might be is essential to understand your risk, and include in your accounting figures. The process of preparing a dilapidations provision gives clarity on this risk, and enables for preparation and planning ahead to reduce future costs and liabilities.
Interim Schedule of dilapidations
Cardoe Martin has many clients with varied property portfolios and property holding pension funds and we strive at all times to ensure that we protect those investments. Identifying tenants who are not fulfilling their lease obligations is a service provided to help pre-empt later dilapidation issues. An interim or terminal schedule of dilapidations can be prepared, and the properties subsequently protected.
FREQUENTLY ASKED DILAPIDATIONS QUESTIONS
What is a schedule of dilapidations?
A schedule of dilapidations is a list of any defects present during or at the end of a lease. They include any repairs required by the landlord to return the property to a good state of repair as detailed in the lease.
What does a dilapidations survey mean?
This is a detailed survey which records the condition of a tenant’s premises towards the end of a lease
Should I consider an Interim Schedule of dilapidations?
If you are concerned that a tenant has undertaken unauthorised alterations which may harm the wider building or services, or you are concerned that a tenant is not complying with their lease obligations you can consider this as an option to enforce mid term repair in line with the lease terms.
OUR DILAPIDATIONS ADVICE CASE STUDIES
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Cardoe Martin Limited, Portsoken House, 155-157 Minories, London,
4th Floor Davis House
Croydon CR0 1QQ