Dilapidations
Whilst a commercial property is let the condition of the property is usually the responsibility of the tenant under the terms of their lease. The tenant is then generally responsible for putting the property into good condition at lease expiry. This is known as Dilapidations.
Dilapidations can become very confrontational, with the landlord obviously trying to maximise his claim whilst the Tenant tries to minimise it.
Before the lease has expired (ideally at least 6 months before expiry) it needs to be reviewed carefully and appropriate action taken inorder to prepare for the dilapidations at expiry.
Once the position is fully understood the Landlord needs to prepare and serve the schedule of dilapidations.
The tenant then needs to review it in detail and prepare a defence. Negotiations then take place, between the landlord's surveyor and tenant's surveyor, in an effort to agree on a compromise.
It is not uncommon for Dilapidations claims to exceed £100,000 and so it is very important that the whole process is managed properly.
New rules governing the protocol employed in dilapidations claims aims to ensure that claims only reflect the true loss suffered by the landlord.
However, even then the detail involved in the preparation of the schedule of dilapidations and the subsequent negotiations often becomes very detailed and protracted.
If not handled properly, it can be very detrimental to either party.
Manage4U can act on your behalf to ensure that you get the best deal and ensure the proper protocol is followed.
