Dilapidations are now a critical issue for both landlords and tenants of commercial property. Whether you are a landlord or a tenant it is wise to get expert advice on dilapidations before signing a new or renewal of a lease agreement.
If you are signing a commercial lease, then you will certainly need to take heed of any clauses concerning dilapidations. Dilapidation is a term used when referring to the condition of a commercial property during the term of the tenancy or when the lease ends. It means the same as disrepair and is tied in with the repairing and decoration obligations in the lease agreement.
Dilapidations and schedules of dilapidations can have serious financial implications for you as commercial (business) tenants, so you should ensure that you fully understand these implications and take steps at the outset to minimise their liabilities before signing a commercial lease.
Key considerations regarding dilapidations for landlords and tenants:
- Dilapidations claims can be substantial: tenants must understand their obligations
- Tenants should limit their dilapidations liabilities at lease commencement
- At commencement, tenants should have the building checked for defects
- Defects (as above) should be incorporated into a schedule of condition
- Landlords should ensure that a schedule of condition is drawn up at commencement and attached to the lease so both parties can agree
- Final schedules of dilapidations are usually prepared by a Chartered Surveyor at lease termination
- Whether you are a commercial (business) tenant or a landlord, the law concerning dilapidations is complex: dilapidations and Schedules of Dilapidations can have serious financial implications for both parties
Therefore it is vital that you fully understand these implications and take steps at the outset to minimise your liabilities before signing a commercial lease.
We have built a reputation, and loyal client base, on the strength of our strategic expertise in this field. Our strict adherence with the latest procedural protocol and our knowledge and application of relevant case law sets us apart from our competitors.
For more information on how we can assist you with any aspect of your dilapidations requirements, contact one of our expert team now on 01923 200096.