Dilapidations Reports
Giving clarity on the condition of the property
While we are mainly approached by Landlords to review dilapidations in a commercial property; we have also conducted these assessments and produced reports for tenants.
Advising Landlords
We support Landlords who require a Dilapidations Report in these events:
- When renewing a lease with an existing tenant.
- At the end of a lease, if the tenant is leaving the premises.
- If it is felt the tenant isn’t undertaking the required maintenance and care of the premises under the terms of their lease.
A review of dilapidations helps to evaluate the state of the property and define which repairs are recommended. The survey and reports are sometimes used to determine any loss in value in the property as a result of dilapidations, although the Section 18 Diminution Valuation Cap can serve to limit the tenants’ dilapidations liability. We have associates who can help with diminution valuations.
Terminal Schedule of Dilapidations
We also specialise in producing Terminal Schedule of Dilapidation reports at the end of a lease.
In producing these reports, we will review:
- All the available documents relating to the property and lease.
- If there are schedules, licences and sub-tenancies in effect.
- What covenants are in place – for example repairing, redecorating, reinstating covenants.
- Yielding up clauses at the end of the lease – for example removing partitions installed by tenants and other tenants alterations.
- The current state of the property in relation to these points.
Our comprehensive Terminal Schedule of Dilapidations will be laid out item by item, room by room and elevation by elevation. This will signpost any breaches of the lease or non-approved alterations, along with problems to the property’s services such as drainage.
The Terminal Schedule of Dilapidations can be a costed schedule to give the financial implications of the repairs required.
Section 146 Notices and Interim Schedules of Dilapidations
To avoid a lease ending with the tenant facing a significant repair bill, many landlords’ solicitors issue Section146 repairs notices prior to 12months before the lease terminates. These include an Interim Schedule of Dilapidations, which details the repairs required.
This also helps landlords to respond quickly to any weather damage or fresh risks to Health & Safety that have emerged in the premises since the lease began or any previous Section 146 Notice was issued. We are highly experienced in conducting the necessary assessments and producing Interim Schedules of Dilapidations for landlords and their solicitors.
Advising tenants
We are also consulted by tenants and their legal advisers, who have been served Interim and Terminal Schedules of Dilapidations claims, and who want an independent professional opinion on the validity of those claims and whether the sums are reasonable.
As above, we will conduct a thorough review to determine whether the landlord’s claim is justified. We will also advise on the appropriate strategy to limit the tenants’ financial exposure.
Extensive commercial property experience
We have considerable experience in assessing a wide variety of business premises. These include retail, office, hospitality, warehousing and manufacturing plants. Our experience also reflects a wide range of property ages, building styles and modification approaches which you tend to find in commercial property.
Peace of mind
Lewis Chartered Surveyors is regulated by The Royal Institution of Chartered Surveyors (RICS). We are required to conform to all its latest standards and best practice.
Find out more
For more information about how we can help you assess the condition of your commercial property, please do get in touch.