Commerical Leases and Schedule of Dilapidations

Many tenants are finding that towards the end of their lease a Schedule of Dilapidations drops through their letterbox.  Many do not understand what the document is, some just pay but most don’t have any idea where to seek advice to establish whether the Schedule is legal and valid.

Defending a Schedule

As specialist Chartered Building Surveyors we have a good working knowledge of repairing liabilities and especially those clauses which always seem a little vague in their interpretation.  Brear Associates are very experienced in inspecting buildings and determining whether a repair is required or not and what the extent of that repair might be.

Working in conjunction with the tenants Solicitor and occasionally a General Practice Surveyor we can defend spurious claims for damages that landlords can sometimes serve upon their outgoing tenants especially where the building is old and dated and in need to refurbishment to make it attractive to a new tenant.

Repair/Improvement 

The debate continues as some Schedules of Dilapidations containin items that are not repairs but improvements.  Improvements extend far beyond the liability of the tenant.  Brear Associates defend such claims to ensure that they are removed and that only the legitimate repairs required under lease covenant are included in any settlement.

Cost Advice

Once the lease has expired it is much more difficult to negotiate the costs of repairs.  It is therefore important to start the negotiation as soon as the Schedule has been served or more importantly to start the negotiation with the landlord before a Schedule is even prepared.

Tenants own schedules

As Chartered Building Surveyors we can prepare Schedules as well as defend them.  We recommend that a tenant should also try and manage the dilapidations process to suit them by having a survey prepared before the lease expires.  This way they can control the cost of repair and ensure VAT is claimed back as a tax and not be lost as damages.

Schedules of Condition

Brear Associates prepare Schedules of Condition for tenants taking on a new lease of an older building.  This can be attached to the lease to limit the tenants liability to only those matters of deterioration that have occurred during the period of the lease.  After all few tenants can afford to pay for extensive roof repairs on an ageing warehouse building after a short lease of 5 years.

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This site was last updated 02-Apr-2007