Dilapidations and Schedules of Condition
Dilapidations are breaches of the repairing, reinstatement and redecoration obligations in a lease. They are one of the most common sources of dispute between commercial landlords and tenants, and early advice usually saves time and money on both sides.
We act for both landlords and tenants.
For Landlords
We prepare schedules of dilapidations setting out the tenant's breaches of covenant, the work needed to remedy them and the likely cost. We then negotiate a settlement or agree a programme of works with the tenant. Claims are prepared in line with the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy (the Dilapidations Protocol) and current RICS guidance.
For Tenants
We review and respond to landlords' claims, checking that the items claimed reflect the lease and the actual condition of the property, and that the costs are reasonable. We can advise on whether to carry out works before the lease ends or negotiate a financial settlement instead.
Schedules of Condition
A schedule of condition is a written and photographic record of a property's condition at a fixed point in time, usually the start of a lease. Attached to the lease, it can protect a tenant from being held responsible for disrepair that existed before they moved in. It also gives landlords a clear baseline if a dispute arises later.
Licences to Alter
Most leases require the landlord's consent before a tenant carries out alterations. We act for landlords and tenants on licence to alter applications, reviewing proposals against the lease, advising on conditions and inspecting completed works to confirm they meet the standard agreed.
Example
We recently acted for a commercial landlord on an industrial warehouse, assessing the tenant's liability and agreeing a settlement figure that allowed the landlord to carry out the required repairs.