Dilapidations can represent a significant and often surprising cost to tenants at lease-end. Understandably, CFOs expect to have a realistic provision for all exit costs in the Accounts.
We, therefore, work with our clients to provide thorough and reasoned budget provisions well in advance of lease-end (break clause, or expiry), being both the Cost of Works assessment made by the chartered building surveyor and input of a chartered valuation surveyor.
By doing so, we can then advise to what extent the statutory Diminution in Value cap is likely to reduce the sum to be paid.
We also limit future lease-end dilapidations exposure by preparing Schedules of Condition to be attached to new leases, recording the condition at the start. Without these, the law is such that FRi leases require that tenants must hand a property back in better shape than when they took it!
Notice to Reinstate
‘Dilapidations’ represents a complex and potentially unexpected level of expenditure at lease expiry.
We uniquely provide both chartered building surveyors and chartered valuation surveyors to offer dilapidations advice and steer you through these complexities to the best outcome, whether you are the owner, or outgoing tenant.
We provide this in respect of all commercial property types, throughout the United Kingdom & Ireland.