Dilapidations – Brief Guide
CSN CONSULTINGllp
CHAPPELL SHEPHERD NESBITT
CHARTERED BUILDING SURVEYORS AND PROPERTY CONSULTANTS

A dilapidations claim is an allegation of breach of contract and as such is actionable in law.

When do you need advice?

Before you take a lease, you need to understand the condition of the property and what your obligations are during the lease and more particularly at the end of the lease. You may benefit from having a Schedule of Condition attached to the lease so that you have a bench mark of the buildings condition at the commencement of the lease, this can reduce the level of a claim significantly.

During the Lease, some Landlords will inspect the property during the term of the lease and may serve what is known as an interim schedule of dilapidations.

At the end of the lease, most Landlords will issue a claim before the end of the lease usually about three months before, this is referred to as a terminal schedule of dilapidations setting out what the Landlords Surveyor assesses as your obligations under the lease. You have an opportunity to rectify such breaches of your obligations but after the end of the lease a cash settlement is the only means of settling the claim should it be justified.

The claim will normally be set out under various headings such as:

  • Repairing costs
  • Decorating and cleaning costs
  • Reinstatement of alterations
  • Statutory obligations
  • Recovering of Surveyors fees
  • Recovery of legal fees
  • Loss of rent and any service charges etc

Response, the Tenant must respond to the claim within a reasonable time usually 56 days

The Schedule, this would normally take the following format (example)

Schedule of Dilapidations Streamside, Robin Hood Way, Nottingham

Item No Clause No Breach complained of Remedial works required Cost (£)
1 4(6)a Floodlighting is provided within the planting area Renew 4No. floodlight fittings and check switchgear and wiring 2,600
2 4(6)a Car parking and hardstanding to east of the north wing. Precast concrete paving slabs to paths adjacent to building. 30No. slabs cracked and broken. 50No. are displaced and uneven Take up and dispose of damaged slabs. Lay new slabs to match existing. Take up and re-lay uneven and displaced slabs 1,800

The schedule would normally be extended to form a Scott Schedule for negotiation purposes.

 

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