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The term “dilapidations” relates to the condition of a leased property that has deteriorated due to tenant neglect or other factors, which may then breach specific obligations within the lease to keep the property in repair (or to reinstate following alterations). This can then lead to legal and financial implications.

Addressing dilapidations effectively is crucial for both landlords and tenants to protect their interests and maintain the property’s value.

A building surveyor experienced in dilapidations can provide:

• A Schedule of Condition

At the start of a lease, a building surveyor can produce a Schedule of Condition which records the condition of the property. This can help in establishing the extent of any subsequent deterioration, easing negotiations and limiting any financial liability for a tenant.

• Accurate Assessment of Property Condition

Building surveyors can accurately identify and document the extent of any disrepair or damage, ensuring that both landlords and tenants clearly understand the property’s condition. This thorough assessment is essential for creating an accurate schedule of dilapidations.

• Objective and Impartial Advice

Surveyors provide objective advice that is crucial in disputes between landlords and tenants. Their assessments are based on professional standards and guidelines, which help to ensure that claims are fair and reasonable.

• A Schedule of Dilapidations

A building surveyor can prepare a comprehensive schedule of dilapidations which – following a review of the lease and any supporting information – lists all the necessary repairs and, depending upon the type of schedule being prepared, their estimated costs.

This document is critical in formalising the tenant’s obligations and serves as the basis for any negotiations regarding undertaking remedial works or any legal actions such as a claim for damages.

A clear schedule helps to prevent misunderstandings and disputes, facilitating smoother negotiations.

• Experienced Negotiation Support

Surveyors are skilled negotiators who can represent either party in discussions regarding dilapidation claims. Their expertise ensures that the negotiations are conducted professionally and that both parties reach a fair settlement. This can save significant time and money by avoiding protracted disputes and potential legal proceedings.

• Cost Savings

Engaging a building surveyor can lead to substantial cost savings. For landlords, an accurate Schedule of Dilapidations ensures that they can recover the appropriate costs for necessary repairs. Dilapidations claims brought by landlords may include a request for a significant damages payment from the tenant. A surveyor can help tenants minimise their liabilities by challenging any unreasonable or inaccurate elements within the claims and thus negotiating fair settlements. This balanced approach helps both parties manage their financial exposure effectively.

Recent Examples of Completed Dilapidations Commissions

A Terminal Schedule served by a landlord to a tenant of a commercial unit in Milton Keynes prior to lease end identified breaches totalling an estimated £73,000. Following a detailed review, we were able to reduce the value of the tenant’s liability to £27,000. It was then agreed that the tenant would do much of the required repair works themselves prior to lease end, further reducing the overall cost to them.   

We then dealt with a similar situation at a commercial site in Northampton, where a Terminal Schedule was served at lease end highlighting a tenant’s repairing liability estimated at £148,000. Our negotiations resulted in this being finally agreed at £65,000.

When acting for a landlord, we have recently prepared a schedule highlighting ‘Wants of Repair’, which reflect a tenant’s failure to keep the property in good repair during the course of their lease. This has allowed the landlord to make sure that outstanding maintenance is actioned by the tenants in a timely fashion.

Long-Term Property Maintenance Planning

In addition to dealing with lease obligations, a building surveyor’s assessment can also provide valuable insights into the long-term maintenance needs of the property. This proactive approach allows landlords to plan and budget for future repairs and maintenance, preserving the property’s condition and value over time.

Peace of Mind

Knowing that a qualified professional is handling the process can alleviate landlords’ and tenants’ stress and uncertainty. It ensures that the property is properly assessed, the necessary repairs are identified, and the costs are fairly allocated.

If you would like more information or to discuss a particular property to see how we may be able to assist, please contact David Cook, Senior Building Surveyor on 01234 362914 or email dgc@robinsonandhall.co.uk.