Thank you for clicking on today’s Property Surveying blog, in this week’s instalment of our informative surveying blog, we are going to be looking at property dilapidations.
Specifically, we are going to be taking a deep dive into dilapidations, what they are and the important facts both landlords and tenants alike should be well aware of in the run up to a lease expiry.
What Are Dilapidations?
Dilapidations are the term used to describe breaches to a lease and property at the end of a tenant’s tenure.
Under the terms of the lease, and specifically the fully repairing and insuring (FRI) covenant, the tenant will be responsible for yielding up the property back to the landlord upon expiration of the lease term.
This ensures that the landlord is not unfairly or unreasonably left out of pocket for necessary repairs.
These repairs being required to bring the property back up to a marketable and tenantable state of repair.
Under the terms of the lease, the tenant will have to hand the property back to the landlord I a reasonable, maintained and decoration position.
When Do Dilapidations Take Place?
A dilapidations survey will take place in the run up to the expiration of the lease.
From a landlord’s perspective, they will want to ensure that the tenant is given enough time to undertake the necessary repair, reinstatement and redecoration that the dilapidations surveyor flags up during the course of their inspection, service and advice.
What Happens If The Tenant Disputes the Dilapidations?
If the tenant does not agree with the landlord’s Schedule of Dilapidations, at this stage they will have to instruct their own surveyor to review, comment and advise.
The aim of the tenant’s response will be to ensure that the landlord does not unreasonably charge the tenant for repairs, redecoration and reinstatement that are outside the scope of the tenant’s repairing obligations as per the lease.
What Happens Once The Landlord’s and Tenant’s Surveyors Have Inspected?
Once the respective surveyors have inspected the property and demise, they will then compare and cross refer the Schedule of Dilapidations to reach at an agreed quantum of scope of works.
It is commonplace at this stage for the tenant to either reimburse the landlord via a cash sum, or alternatively to undergo the necessary making good and redecoration to the property.
In the vast majority of cases landlords will often opt for the tenant to undertake the all necessary repair and making good, as they are unlikely to want to go through the inconvenience and nuisance of having to yield up the property themselves.
It should also be worth noting, that if the tenant does indeed undertake the planned redecoration works, they will not have to pay the landlord construction management costs, contractor overheads, preliminaries and other costs.
There is therefore a sensible cost saving to be made here.
Do I Need A Dilapidations Surveyor?
Yes, in almost all cases it is sensible for both landlord and tenant alike to seek the professional input of a building surveyor who undertakes dilapidation surveying work.
This will ensure first and foremost, that the matter is looked at through the perspective of a professional eye.
However, it will also ensure that the all necessary emotions are removed from what can often be a somewhat complicated negotiation process.
If you would like to discuss dilapidations matters with our London based building surveyors, please feel free to get in touch today, we would be more than happy to assist and advise.
