Dilapidations can be quite a complex area so we thought we would clarify some of the terms and processes involved and when it is best to enlist some expert help:
What does dilapidations mean?
Dilapidations refer to the alleged breaches of a lease or tenancy in regards to the condition of the property. These can take the form of defects and disrepair which tenants must remedy, or pay to have remedied, when they vacate a property. Office Dilapidations typically involve the restoration of a commercial workplace back to its original condition prior to occupation and changes made by the tenant.
What is a schedule of dilapidation?
A Schedule of Dilapidation is normally undertaken by a surveyor on behalf of the landlord to assess the condition of a commercial property and identify any alleged breaches of a lease or tenancy that have been caused to the property by the tenant failing to comply with their obligations under their lease.
This is usually split into 3 sections: repair, reinstatement, and redecoration. A Quantified Demand which sets out the overall claim will normally form part of the Schedule of Dilapidation .
The liability of the tenant will depend upon the details contained within the lease. The condition of the building will need to be assessed and where an alleged breach has occurred, the appropriate methods to remedy will need to be identified.
As this can be the document that will be used if there is a dispute, the landlord needs to make sure the Schedule of Dilapidation and Quantified Demand are completed by an experienced professional.
Types of schedule issued
There are two types of Schedule of Dilapidation that are issued, namely:
Interim Schedule of Dilapidations – this is prepared in contemplation of any alleged breaches that occur during the term of the lease and sets out the remedy.
Terminal Schedule of Dilapidations – prepared at or just after the end of the lease. This can be prepared prior to the end of the lease
How does the claim process work?
A landlord would generally serve a formal schedule of dilapidation within 56 days of the end of the lease; however, it is preferable to do this prior to the lease coming to an end. This enables the tenant to complete the remedial work and means the property could be re-let as soon as the previous tenant has left.
The tenant should respond to the schedule within a further 56 days.
At any point during the process the tenant could instruct a surveyor to work on their behalf.
The tenant must decide whether to undertake the works, during the lease, or agree a financial settlement with the landlord. It can often be financially advantageous for the tenant to undertake some or all of the works, but once the lease has expired, the tenant loses the right to do so and negotiating a claim for damages becomes the only solution.
How long does the dilapidation process take?
The schedule of dilapidations should be issued within 56 days of the end of the lease. The tenant then has 56 days to respond. This is a considerable length of time when you are looking to relet as soon as possible. Therefore, it is advisable to start the process as soon as you can, so everything can be resolved before the tenant leaves. Specialist dilapidation professionals are experts in this area and employing their services will smooth and expediate the process, as well as taking all the day-to-day activities out of your hands.
What are the costs for dilapidations - survey & reinstatement
As well as undertaking the works, we can offer the service of costing up the schedule served as part of a commercial settlement and if required work with Chartered Building Surveyors to challenge details and extent of the claim.
Unfortunately there is no one size fits all, so please contact us so we can provide the right level of assistance.
What type of work does a commercial refurbishment company help with when it comes to dilapidations?
As well as supporting you with your survey and claim a specialist refurbishment company can also take care of all the refurbishment works, from a complete strip out to minor repairs and decoration, including:
· Full strip out to original shell
· Waste disposal including unwanted office furniture, fixtures, and fittings
· Partitioning
· Ceilings and lighting
· Flooring
· Decoration
· Mechanical/IT (electrical, plumbing, HVAC, data/network)
· Cleaning
With 30 years’ experience, Yellow Interiors is well placed to work with you to ensure that your commercial premises are a safe, welcoming environment for your next tenants. Working closely with our partners, we can assist with everything from surveys, reports, claims to remedial work, leaving you free to get on with your business.
