Receiving a schedule of dilapidations does not necessarily mean that the amount initially claimed by a landlord is the final amount that the tenant will have to pay.
Dilapidations claims can be negotiated where there is a genuine difference between the parties regarding the tenant’s obligations, the required works or the landlord’s loss.
Why might a claim be disputed?
A tenant may question individual items within a schedule for several reasons.
For example:
- The lease may not require the proposed work.
- The alleged breach may not be properly evidenced.
- The scope of repair may be greater than necessary.
- Some works may amount to improvement rather than repair.
- The landlord may not intend to undertake the works.
- The landlord’s claimed loss may require further consideration.
The appropriate response depends on the wording of the lease and the particular circumstances.
How does a surveyor help?
A building surveyor can inspect the property and review the schedule against the relevant lease obligations.
For a tenant, this can help establish which items appear to represent genuine breaches and whether the proposed scope of works is proportionate.
For a landlord, a surveyor can review the condition of the property and prepare or assess the schedule to ensure that the identified works are properly supported.
Does negotiation mean the tenant does not have to do the works?
Not necessarily.
The tenant’s obligations arise from the lease. Negotiation may concern the extent of the works, the cost of remedying breaches or the landlord’s actual loss.
The parties may ultimately agree a financial settlement rather than the tenant undertaking every item of work identified in the original schedule.
What about Section 18?
Section 18 of the Landlord and Tenant Act 1927 can be relevant when assessing a landlord’s damages for breaches of repairing obligations.
In particular, it places a statutory limit on damages in certain circumstances.
The application of Section 18 depends on the facts and should not be treated as a simple percentage reduction to a dilapidations claim.
Should I obtain a surveyor’s advice?
Where a claim is substantial, an independent assessment can help establish whether the items identified are consistent with the lease and the actual condition of the property.
A surveyor can also provide an evidence-based assessment of reasonable remedial works and associated costs.
Stokemont’s advice
Dilapidations claims should be assessed against the lease, the actual condition of the property and the landlord’s circumstances.
Where there is a significant difference between the parties, obtaining independent surveying advice at an early stage can help establish the technical issues before negotiations progress.
