• Schedules of Condition
• Dilapidations Assessments
• Repairs Notices
• Interim & Terminal Schedules of Dilapidations
• Negotiation
• Compliance Works
• Expert Witness

Dilapidations Assessments

For Tenants
The Dilapidations Consultancy regularly acts for commercial property Tenants in identifying lease covenant breaches and advising how vacation should be managed to avoid unnecessary cost and liability.  This often requires a detailed pre-expiry Dilapidations Assessment ahead of the lease end to include budget costs and a draft Heads of Claim identifying all anticipated additional fees and charges. This provides the tenant with an accurate reflection of the likely nature of the Landlord’s claim.  Advice and guidance is then given on how wholesale savings can be made to reduce, or even mitigate, this liability.  This is further reinforced at the negotiation stage. 

Pre-occupation Dilapidations Assessments also serve as an invaluable overview of potential liability before a lease is signed and the property occupied.  This can assist Tenants in either re-negotiating terms or modifying the repairing obligations including the provision of a Schedule of Condition.

For Landlords
We regularly prepare Dilapidations Assessments for Landlords during the lease term to provide an overview of any accrued liability, which is often a vital aspect of any surrender negotiations invoked by the Tenant.  Where required, this may become the subject of an Interim Schedule of Dilapidations to be served upon the Tenant for mid-term compliance.

FRS 12 Dilapidations Assessments (Large Corporate Occupiers)
For large corporate occupiers filing accounts under FRS 12, we have developed a detailed format for FRS 12 Dilapidations Assessments that will stand up to the scrutiny of HM Revenue & Customs in the format of a Third Party Valuation.  This has the dual benefit of providing the occupier’s Financial Director with an accurate balance sheet where occupational liabilities are fully recognised, as well as assist deference of tax against ‘material’ Provision allowances.


Repairs Notices

Often seen as an ‘informal’ method of a Landlord invoking the Tenant’s observance of certain repairing obligations, the Repairs Notice is a swift and effective tool for alerting the Tenant of their contractual duties to repair and maintain, whilst retaining an amicable Landlord-Tenant relationship.  In certain cases, and where the lease permits, the Landlord may wish to formally serve a Repairs Notice pursuant to certain rights within the lease enabling the Landlord to enter the premises upon expiry of notice and undertake the works if the Tenant defaults; costs are then recovered as a debt rather than damages.  This is often a disruptive and costly outcome for the Tenant with obvious implications for the Tenant’s business.

We regularly act for Landlords wishing to serve a Repairs Notice as well as advising Tenants in receipt of Notice to ensure unnecessary cost and inconvenience is avoided, whilst properly enforcing the rights and duties of each party.


Interim & Terminal Schedules of Dilapidations

Most Landlords and Tenants of commercial property will, at some point, come across a Schedule of Dilapidations.  This may either be an Interim Schedule (during the term), or a Terminal Schedule (at or following lease expiry); there are legal parameters which define the content, correct method of service and timing of each.

We act for Landlords in the preparation of Interim and Terminal Schedules of Dilapidations for formal service upon the Tenant.  In some situations we will act for Head Tenants in a similar capacity if the obligation can be legally passed down to a Sub-Tenant.   Our Schedules are accurately prepared following a detailed inspection of the premises and adhere to the RICS Guidance Note on Dilapidations and the Property Litigation Association’s ‘Pre-Action Protocol for Terminal Dilapidation Claims’ (aka the ‘Dilapidations Protocol’).  All budget costs are the subject of verification through recognised cost indices and, where appropriate, subjected to a competitive tender to ascertain the true market rate for the claimed works.  This process obviates the potential for ‘inflated’ or ‘unsubstantiated’ surveyors costs, which may otherwise exacerbate a dispute between the parties.


Negotiation

Claim Enforcement (acting for Landlords)
Following preparation and service of a Schedule of Dilapidations, we will usually be retained by the Landlord (or Head Tenant) to enforce the claim in partnership with the Landlord’s Solicitors; this usually entails a process of negotiation to achieve the desired result.

Defence (acting for Tenants)
Our main focus is representing Tenants who are in receipt of a Schedule of Dilapidations issued by their Landlord, either prior to, or following expiry of their lease.  Our appointment will be to negotiate a favourable outcome subject to the true measure of the Landlord’s loss by virtue of the alleged breaches, and where circumstances permit, we will seek to mitigate the claim altogether.  Our Surveyors have a detailed and in-depth knowledge of the associated case law and statutory instruments governing this complex area of property law to the advantage of the appointing client.


Compliance Works

We act for Landlords and Tenants in the specification and contract administration of compliance works to satisfy the lease obligations.  Where acting for Tenants, our role will also extend to ensuring the works are agreed between the parties in advance of commencement to avoid any later dispute over non-compliance; this will culminate in obtaining sign-off from the Landlord or their advisors on completion.


Expert Witness

We have the experience and capability to act as an Expert Witness of either fact or opinion in relation to contentious dilapidation claims.