Lease

The key reason why any tenant settling a dilapidations claim using just a Building Surveyor (BS), will be paying out over the odds.

Today’s announcement by M&S that it is to bring forward the closure of 67 department stores is no surprise. What we are seeing in the retail property market generally right now is that even pre-existing planned store closures are being accelerated. 

These slides from a seminar presentation give an insight into how to minimise dilapidations settlements.

Paragraph 9.4 of the Dilapidations Protocol (the Protocol) could not be clearer:

“…in a case where the landlord has not carried out all the works specified in the schedule…it should provide a formal diminution valuation (DV)…”

Commercial landlords can make a dilapidations claim against their tenant if they feel they have broken their lease agreement and left a property in a bad condition.

The strength of any dilapidations claim depends on demonstrating the property’s state at the date of lease expiry/break.

The Government’s announcement that Local Authorities are to be empowered to force Landlords to let empty shops (by Compulsory Rental Auctions) probably creates more problems than solutions for both owners and recently departed Tenants alike - especially for dilapidations claims.  

With inflation at its highest rate for 30 years and costs spiralling out of control for households, consumers and businesses, the cost-of-living crisis is hitting home for everyone.

Commercial property leases will normally include clauses for a tenant to redecorate, repair and leave a property in a certain condition when they vacate at the end of a lease term. If this has not or considered to have not been met, then the landlord will usually make a dilapidations claim.

We find it is essential to know when clients are taking on a lease what distinguishes Schedules of Condition (SoC) as just adequate, from those which best protect tenants.

This webinar provides an invaluable introductory steer through the minefield of dilapidations.