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Dilapidations

We have delivered thousands of projects that involved the renewal, remodelling, or reconfiguration of buildings throughout the UK. FSPS operatives are accustomed to working within occupied environments such as care homes, hospitals, and hotels.

Whether minor alterations to highly complex full-scale building renovation, FSPS are trusted by numerous clients across multiple sectors.

 

In any project, FSPS aim to deliver your building refurbishments within budget and always to the agreed timescales. We are committed to achieving the optimal result for your available budget.

 

Our team of experts will work closely with you to design, plan, and implement your building refurbishments. Successfully delivering property refurbishments with minimal impact on your property occupants and core business activities, is always a key concern. All building refurbishments are undertaken with the health and safety of everyone involved as a priority. We always restrict access to live construction environments and will work closely with clients to ensure works are conducted in a safe manner.

 

Delivering impressive building refurbishment services that will support your long-term property investment plans.

What are dilapidations and why are they important?

 

Commercial leases usually contain a repairing obligation (and very often an extensive one) which sets out the extent of a tenant’s obligations to maintain and repair the leased property.

 

“Dilapidations” is the term generally used to refer to the process a landlord needs to follow to recover any loss they may have suffered because of the tenant’s failure to return the property to him at the end of the lease having reinstated any items of damage or disrepair in accordance with the repairing standard imposed on them.

 

When budgeting for a lease a tenant should, and generally will, budget for the obvious outlays such as the rent, business rates, utility bills, any service charge, and their fit-out costs. A less obvious concern may be the potential dilapidations liability at the end of the lease as this is likely to be furthest from their mind at the beginning of the lease.  However, it is very much worth getting the drafting right at the beginning to ensure that, at the end, the tenant (and equally the landlord) is not met with an unexpected outlay.

 

If the repairing clause and dilapidations clause are clear from the outset this allows the tenant to make an informed estimate of their liability during and at the end of the lease. This is a complex exercise and some factors which will enter that equation are:

The size, age and type of property – is it relatively new or is it a 18th century property? Is it a vast industrial warehouse or a small lockup?

 

Is it a new lease or is the tenant is taking on a lease part of the way into the term?

What happens at the end of a lease?

 

A lease is a contract. Strictly, at the end of the lease, the obligations the parties have to each other cease except for any claims against each other in relation to breaches of the lease which have occurred before the lease ends.

 

A lease usually allows the landlord to serve a Schedule of Dilapidations specifying any repairs required to a property at any time during the lease, and in addition, within a reasonable amount of time after the lease ends.

 

The Schedule, especially at the end of the lease, is usually prepared by a surveyor and served by a solicitor. What are dilapidations and why are they important?