The landlord will have instructed a Chartered Building Surveyor (CBS) to identify and cost out any disrepair. You suspect that the amount claimed is exaggerated, but don’t know where to begin in robustly defending your position and minimising the damages you end up paying.
Our network of the highest calibre of specialist dilapidations surveyors has unparalleled experience of successfully minimising dilapidations settlements for all types of commercial and leisure property, throughout the UK & Ireland.
How We Can Help You
What To Do When Faced With A Large And Seemingly Unfair Dilapidations Claim?
Dilapidations are breaches of lease covenants, usually relating to the property’s condition during or at the end of a tenancy. We help commercial tenants robustly respond to dilapidations claims by providing specialist surveys, schedules, advice and representation. It is important to get independent evidence on the extent of the alleged property damage at lease renewal or break. If for some reason access is a problem and an ordinary dilapidations survey cannot be done, then inspections by specialist safety (plumbing, gas, electrical) and security (boarding up) contractors most likely still will be. You should therefore arrange for one of these contractors to take a comprehensive schedule of internal and external photographs whilst there. We can provide a checklist tailored to the property.
- These can then be compared with what our dilapidations surveyor finds at a later, more detailed survey, protecting your position.
- By instructing us, you’ll have a more experienced, knowledgeable and tenacious chartered building surveyor than the Landlord on your side, ensuring the minimum cost of remedial works will be negotiated. We have a proven track record of securing unbeatable outcomes for our clients.
Statutory Cap – The Tenant’s Defence To A Dilapidations Claim
In England, Wales, Ireland and Isle of Man, legislation limits damages to the lower of the cost of remedial works, or the impact (if any) the disrepair has on the property’s value. This is also known as the Section 18 Diminution in Value “statutory cap” and is usually far less.
This can only accurately be assessed by a different discipline of chartered surveyor, namely by a Chartered Valuation Surveyor (CVS), or ‘Valuer’. It is vital to have 2 surveyors on board:
- One to assess repair costs (CBS) and
- One to assess if the impact on the property’s value is less (CVS).
As the only dilapidations consultancy that always has both types of surveyor available, we can guarantee the lowest possible dilapidations settlement figures for tenants.
Protect Yourself With A Schedule Of Condition
Increasingly tenants leasing a property for the first time aim to limit their exposure to a large dilapidations claim by attaching a Schedule of Condition to the lease.
This should be a descriptive report referencing detailed photographs recording the precise condition of the property at the start of the tenancy. The repairing (and decorating) covenants then make it clear that the tenant must maintain the property in a no better (or worse) condition than at the start of the lease.
We can help to protect you by preparing a Schedule of Condition for you, on any property type, anywhere in the UK & Ireland. When the lease ends, with full knowledge of the property and armed with the Schedule, we are in the strongest possible position to negotiate the best outcome for you in any dilapidations claim.
TAX BONUS For Tenants
Did you know that under Financial Reporting Standard (FRS) 102 (previously FRS 12), companies may be able to reduce their Corporation Tax liability by including future dilapidations in their accounts?
Our expert Chartered Surveyors carry out dilapidations liability assessments on commercial and leisure properties for businesses that can then be used for their tax calculations. This is not only a welcome boost to cash flow but allows for sensible advance planning to ensure that the business has funds available at lease expiry/break with no hidden surprises.
Get in touch for a free, no-obligation discussion and see if we can help your bottom line.
Our network of chartered building surveyors can provide pre-dilapidations assessments, usually at least a year before the lease expires, to help the business budget ahead of the end of the lease.
They will then negotiate to a minimum possible Cost of Works assessment so as to enable our chartered valuation surveyors (valuers) to assess to what extent the statutory cap applies.
Examples Of Tenants We’ve Helped
Their building surveyor negotiated the works cost down to less than half, and then their valuation surveyor managed to negotiate it lower still.
Whether knowingly or unknowingly, landlords often infringe tenants’ rights. Without proper protection, you may find yourself being forced to part with money that you aren’t liable to pay.
Our qualified chartered surveyors will provide sound, knowledgeable, and reliable tenant lease advice along with vital services which will safeguard you against the bloated and unnecessary repair, redecorations, and reinstatement charges. We are unique in the fact that we offer both types of chartered surveyor required for a comprehensive tenant dilapidations service.
Other Commercial Property Matters We Can Help You With
Our chartered surveyors with Dilapsolutions and our other niche sister brands within this privately-owned group advise on all aspects of commercial property occupation and ownership, including: