Our Services
- Acquisition & Disposal
- Building Consultancy
- Business Rates
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- Development Consultancy
- Dilapidations
- Disputes
- Facilities Management
- Investment & Funding
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- LPA Receivership
- Marine & Leisure
- Planning Consultancy
- Property Asset Management
- Service Charge Consultancy
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Case Studies
Seeing What’s Best for the Business
As part of our ongoing relationship, Vail Williams were asked by Jacobs, one of the world’s largest and most diverse [...]
Recognising the Alternatives to Relocation
Vail Williams helped Babcock International Group save £550,000 in rent alone over their 5 year lease.
Dilapidations
Avoiding unnecessary, untimely and costly claims
Dilapidations are a very common area for costly and time-consuming disputes to arise.
Most leases detail the extent to which the tenant must keep the property in repair and good order. They also usually require the tenant to re-decorate and remove any alterations made to the property at the end of the lease. Failure to comply with these obligations usually results in a dilapidations claim from the landlord. These claims can range from a few thousand to many millions of pounds, depending on the size and nature of the property.
It is extremely important to consider and understand in full the precise nature of these future dilapidation liabilities before the lease is signed.
Tenants can easily find themselves liable for repairs to properties not in the best of condition that should have been undertaken previously. A comprehensive schedule of condition drawn up at the outset will help protect your interests as well as clarify your obligations. Careful negotiation can also exclude certain parts of properties from your obligations.
A proactive planned maintenance programme addressing any necessary repairs over the life of the lease is the best way to mitigate being presented with a large liability. Ultimately this is in everyone’s interest, both occupier and landlord, protecting their long-term interests and removing unexpected or unnecessary major capital expenditure.
Towards the end of the lease or to take advantage of a lease break, tenants generally have two options – to undertake the required works themselves or to vacate the premises and await the claim from the landlord. Undertaking the works yourself allows you to control the procurement and costs, however, it requires early vacation and is still subject to approval by the landlord. Leaving it to the landlord does allow you to stay in occupation longer, however, the landlord’s claim is likely to include other items such as fees and legal as well as rent and business rates for the period whilst the work is undertaken. Careful scrutiny of the claim is required if it is to be reduced.
We have extensive experience in advising occupiers regarding their dilapidations liabilities at all stages of their leases. We ensure tenants understand their liabilities in full and can make commercial decisions accordingly. Our expertise and detailed understanding of such claims allows us to mitigate landlords’ claims to the maximum possible.
You may also be interested in
- Acquisition & Disposal
- Building Consultancy
- Business Rates
- Corporate Real Estate
- Development Consultancy
- Disputes
- Facilities Management
- Investment & Funding
- Lease Advisory
- LPA Receivership
- Marine & Leisure
- Planning Consultancy
- Property Asset Management
- Service Charge Consultancy
- Treasury Management
- Valuation
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