Why Survey a Commercial Building?
Dilapidations are breaches of leases due to the condition of the property being leased, either during or at the end of the lease period.
Most commercial leases allow the landlord to serve notice on the tenant, listing items that are in disrepair and requiring the tenant to comply with its repairing obligations. A schedule of dilapidations is usually a list of dilapidations served on the tenant at the end of the lease, but may occasionally refer to a list of dilapidations served on the tenant during the term of the lease.
Generally it is the terminal schedule that sets out proposed remedial works and costs.
The lease may include clauses permitting the landlord to enter the property to undertake remedial works themselves under specific circumstances if the tenant is in breach of their obligations under the lease. The landlord might also seek forfeiture of the lease to recover possession of the property.
If dilapidations works are not carried out by the end of the lease, the landlord may claim damages from the tenant (a terminal dilapidations claim). This may take the form of a ‘quantified demand’ setting out details of the landlord’s lossess a result of the dilapidations; this may include loss of rent due to repairs being carried out.
The tenant should properly assess the validity of the schedule of dilapidations against their obligations set out in the lease and should also verify the costs if these have been quoted. The tenant may benefit from the services of a Surveyor to help them do this.
A ‘Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy’ (‘The Dilapidations Protocol’) is available from the Ministry of Justice. This describes the conduct the court expects the parties to follow before commencing proceedings, setting out a process and timetable for the exchange of information, and establishing standards for the content and quality of schedules of dilapidations and quantified demands.
Get input from a Chartered Surveyor before you sign a Tenancy Agreement & help avoid adverse costs!
Landlord Services at PA Surveyors
- Preparation of Interim Schedules of Dilapidation during the lease, prior to issuing a Notice of Repair.
- Preparation of Terminal Schedules of Dilapidation at the end of a lease.
- Preparing Dilapidation claims for service on your tenants and negotiating settlements with the Tenant’s Surveyor.
- Reviewing licenses for alteration and monitoring tenant’s works on your behalf.
- Design and procurement of remedial and reinstatement works.
Tenant Services at PA Surveyors
- Preparing Schedules of Condition prior to entering a new lease, to limit your repairing obligations.
- Responding to Landlords Schedules of Dilapidation and negotiating the extent and quantum of claim with the Landlord’s Surveyor.
- Assessment of Dilapidations liabilities for budget purposes.
- Design and procurement of remedial and reinstatement works.
Why Instruct PA Surveyors?
At PA Surveyors we provide you with a detailed Dilapidations Survey which helps to ‘fight your corner’ whether acting for Landlord or Tenant.
We not only understand the Law and specific requirements of Dilapidations, we also have the Building Surveying knowledge that is ultimately needed to fully assess any claim. Accurate costings, reasons and method of works must be justifiable. This will help avoid delays which can be expensive.
We have worked both on the Landlord’s side and the Tenant’s side; as a consequence we have the perfect experience to bring to the negotiating table. We also always aim to maintain good relations, yet, ensure the correct outcome is effectively achieved.
All Commercial Leases will require a Dilapidations assessment as they come to an end. At PA Surveyors we ensure you get the right advice early on, helping you to save time and money.
Our RICS Chartered Surveyors operate throughout East & West Sussex; to include Brighton, Hove, Portslade & Shoreham, as well as Crawley, Haywards Heath, Eastbourne and beyond. Our Award Winning Surveyors are here to help!
Please contact us to obtain further free advice and a no obligation quotation.