Dilapidations - Surveyor's View

February 01, 2006

What is Dilapidations?

•          Breach of repairing covenant

•          Breach of decorating covenant

•          Failure to reinstate

•          Failure to comply with statutory requirements

Covenants to repair

•          Full repairing

•          Internal repairing plus service charge / recharge

•          Pure internal repairing

Covenants to decorate

•          Usually every 3 or 5 years

•          Last year or 6 months

•          Standard specified in the lease

Reinstatement

•          Alterations

•          Partitioning

•          Mezzaine floors

•          Alterations to services

Statutory Requirements

•          Control of asbestos in the workplace regulations

•          Fire alarm

•          Electrical certificates

•          Gas

•          O & M Manuals

Schedules of Dilapidations

•          Notices of Disrepair

•          Interim Schedules

•          Terminal Schedules

Schedules of Condition

•          Property in poor condition at start

•          Not reinstate to any better condition at end of lease

•          Only as good as the schedule

•          Not the entire answer

Terminal Schedules

•          The lease and other documents

•          Inspection

•          Preparation of the Schedule

i.          Lease covenants

ii.          Alleged breaches of covenant and remedial actions split between the 4 types of breach

iii.         Estimated cost of remedying the breaches

iv.         Ancillary Heads of Claim

Negotiation and Settlement

•          OPTIONS

i.          Do the Work

ii.          Negotiate and settle the claim

iii.         Court or Mediation if unable to settle

•          Dilapdations protocol

•          Scott schedule

 
Limit of Liability

•          Supercession

i.          Demolition

ii.          Alteration

iii.         Refurbishment

iv.         Improvement

Section 18 Landlord and Tenant Act 1927

•          Landlords loss limited to diminution in the value of the freehold reversion.

•          How is diminution assessed?

•          In repair / out of repair valuations.

SUMMARY

•          IF YOU ARE A TENANT:

i.          Consider a Schedule of Condition

ii.          Don’t overlook your repairing obligations during the lease

iii.         Obtain landlord’s approval for alterations

iv.         EMPLOY A SURVEYOR!

•          IF YOU ARE A LANDLORD

i.          Make sure you enforce lease covenants and avoid difficulties with incoming tenants

ii.          Adhere to the protocol

iii.         EMPLOY A SURVEYOR!

For further information please email Mark Pepper or call 01908 678800.

Get to know your EPCS: Improvements you can make to your building that won’t cost the Earth

July 04, 2022
Read Article

Luxury car maker begins UK journey with new HQ

June 30, 2022
Read Article

Q2 2022 Planning Updates

June 29, 2022
Read Article

Volvo Trucks opens new dealership in Bedford

June 23, 2022
Read Article