DILAPIDATIONS NEGOTIATIONS

Dilapidations negotiations can be complex and tricky;

Under the terms of an occupational lease, a tenant will have a legal liability for undertaking repairs, decoration and reinstatement works during and at the end of the lease term.   A dilapidations claim arises when a tenant vacates space either at the lease break point or at lease end and the resulting condition of the space is not deemed satisfactory from the perspective of the landlord.  The unsatisfactory condition of the space could affect whether or not the landlord is able to re-let the space, which could result in a loss of revenue.

The landlord will serve a Terminal Schedule of Dilapidations alleging that the tenant has breached their legal obligations under the repair, decoration and reinstatement covenants of the lease.

Dilapidations is a claim for damages under common law which is enforceable in a court of law.

Dilapidation claims are often contentious mainly due to the differences between the landlord’s interpretation of disrepair to the space in question versus the tenant’s.   The two parties will, no doubt, also have differing viewpoints on the level of repair work that should subsequently be undertaken.

The dilapidations process can therefore be complex and costly if it isn’t managed carefully.  Specialist dilapidations and legal advice must be sought at the earliest opportunity.

At Cushman & Wakefield, our dilapidations team are considered by our peers to be market leaders. We thrive on finding solutions to tricky problems, and ultimately driving negotiated settlements in difficult circumstances, with the best possible results for our Clients.

For further information please contact Alex Charlesworth FRICS;