Dilapidation is a term used when there is a state of disrepair in contravention of the repairing obligations contained in a commercial lease. Normally the tenant is required to remedy defects or come to a financial settlement with the landlord at the end of the lease.
Primarily it is intended to ensure that the landlord’s property is returned to them in a reasonable state of repair. However interpreting the repairing obligations is complex and is often based on case law. Recently The Civil Procedures Rule and The Pre Action Protocol require surveyors to act reasonably and timely to try to mitigate against disputes ending up in court.
Schedules at the end of a lease are limited by Section 18.1 Law Property Act 1927 and shall be no greater than the diminution in the value of the reversion.
Interim schedules are prepared for the landlord during the term requiring remedy of breaches to prevent substantial diminution in the value of the property. The Leasehold Property (Repairs) Act 1938 protects the tenant from forfeiture of the lease.
We can prepare schedules of dilapidations for the landlord or negotiate on behalf of the tenant should a schedule of dilapidations be served on them.