AWP Consulting, Chartered Surveyors and Project Managers specialise in Dilapidations Surveys. We provide a first class, personalised nationwide service from our base in North Yorkshire.
Dilapidations is simply an assessment of the breach of repairing or decorating covenants of a lease.
Action over dilapidations is usually instigated by the landlord the end of a lease. In many cases a landlord will be aware that a tenant has not fulfilled its obligations dutifully and seeks either specific performance (i.e. putting things right) or compensation in money.
The documents setting out such shortcomings is called a Schedule of Dilapidations and is prepared a standardised format with a description of each identified item and reference to the lease clause breached.
The procedures around dilapidations are now regulated by the Dilapidations Protocol ought to be followed unless there are sound reasons otherwise. We include a link to the dilapidations protocol here.
Notwithstanding the actual wording of the lease, the landlord is not entitled to full compliance until three years before the end of the lease. This landmark generally differentiates an interim schedule of dilapidations from a final or terminal one.
A tenant will have the right to remedy items identified in schedule of dilapidations before the end date of the lease. But thereafter, unless agreed otherwise, the remedy is monetary compensation to the landlord.
Before the end of the lease, tenant may choose to either carry out dilapidations work or prefer a monetary settlement. There are many influencing factors with neither option necessarily always appropriate.
A landlord’s available remedies can be limited by an important statute, the landlord and tenant act, 1927. Section 18 of this act includes2 limbs:
- The first limits the claim to the amount that the value of the landlord’s reversion is diminished by breaches of the covenant to repair. The landlord cannot recover more than it has cost, in terms of the loss caused to the value of the property. This is the diminution in the property’s reversionary value, caused by the disrepair.
- The second part states that no damages are recoverable, if it can be shown that on expiration of the lease the premises would be demolished or altered to the extent that would render valueless the repairs in question.
AWP consulting has extensive experience in acting for both landlords and tenants in dilapidations matters. For landlords we produce and negotiate the schedule of dilapidations, and for tenants we address a schedule prepared for the landlord.