Responding to Dilapidations Claims
It is crucial when making a response that the tenant engages the services of a chartered valuation surveyor in addition to the chartered building surveyor who is preparing the Response document in order to ensure that you do not forfeit significant sums unnecessarily.
For more information on how our unique provision of each type of chartered surveyor required can offer significant tenant protection during dilapidations claims, get in touch with us today.
Subtly different terminology is used in different parts of the United Kingdom & Ireland, but the principles and effect are similar.
The ‘Quantified Demand’ is effectively the Schedule of Dilapidations, which is a document prepared by the chartered building surveyor outlining alleged breaches of covenants to repair, redecorate, and reinstate.
The document, usually an Excel spreadsheet, will propose remedies along with costings for the remedial works (along with any claims for loss of rent, interest etc.). This Quantified Demand (Schedule of Dilapidations) is usually ‘served’ on the outgoing tenant by the landlord’s solicitor.
Responding to a Dilapidations Claim
The tenant should engage their own chartered building surveyor (see ‘Our Services/Our People’) to carry out their own survey of the property and prepare a robust ‘Response’ to dilapidations claims.
Typically, this is the addition of their own columns and rebuttals of certain alleged breaches to the Excel document, along with alternative suggested remedies and lower costings.
At the same time, to maximise strength in the dilapidations negotiations, the tenant may include the defence of the ‘statutory cap’. This is an argument that damages suffered due to the impact of the breaches on the freehold value of the property will be lower than the cost of the remedial works.
This is called a ‘Diminution Valuation’. A Diminution Valuation is prepared by a chartered valuation surveyor. At Dilapsolutions, we uniquely provide both types of surveyor required by a tenant to secure an ideal outcome when going through dilapidations negotiations.
More often than not, the ‘statutory cap’ does serve to reduce the settlement figure to less than the lowest assessment of Cost of Works.
Note that in any event, if a landlord has not done, or does not intend doing any or all of the remedial works, paragraph 9.4 of the Dilapidations Protocol requires that the landlord should be providing its own Diminution Valuation in support of its claimed loss.
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Responding to dilapidations claims without due diligence can expose a tenant to the risk of significantly oversettling. It is therefore vital that tenants obtain the best professional support so as to provide a strong rebuttal to the claim wherever appropriate and necessary.
At Dilapsolutions we have only the most acclaimed personnel,providing comprehensive knowledge and expertise,coupled with tenacity, to ensure the best possible outcome,every time.
We are unique in our industry in that we offer both chartered building surveyors who provide an informed, and strong challenge to the landlord’s claimed repairs and remedial costings, as well as a chartered valuation surveyor to reduce the settlement figure by evidencing that the statutory cap should be engaged.