DILAPIDATIONS
The assessment of potential dilapidation claims and liabilities on behalf of landlords and tenants respectively. Preparation of Schedules of Dilapidations and negotiation of settlements.
There is considerable mystique surrounding the interpretation and practice of dilapidations. However, the correct understanding of lease terms, the overriding legal rights and entitlements of the parties involved, and the application of common sense will successfully steer both landlord and tenant to an equitable conclusion.
The service will normally comprise four distinct stages:
Stage 1: Preparation
Obtaining and studying all necessary information including, inter alia, lease agreements, licences for alteration, schedules of condition and schedules of landlords’ and tenants’ fixtures and fittings.
Stage 2: Inspection of the property
A thorough and comprehensive Inspection of the property to identify all items of disrepair.
Stage 3: Preparation of the Schedule of Dilapidations
Schedules are prepared in a standard, recognised format on an item-by-item basis. They include identification of the relevant items, the clause within the lease which covenants the required standard of repair, the nature of the breach of covenant to repair, the remedial work required and the estimated cost of that work. Space is left within the schedule for both tenant’s and landlord’s responses regarding the alleged breach, remedy and cost.
Stage 4: Response and negotiations
Serving of the Schedule (if acting for the landlord), or receiving and responding to the Schedule (if acting for the tenant). Subsequent negotiation to arrive at an agreed final Schedule and cost.