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“Fairhurst Estates expertise in negotiating dilapidations claims
has long been recognised by our existing and now a growing number of
new clients. |
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| Dilapidations |
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‘Dilapidations’. A word often misspelt and more often misunderstood, but comes sharply into focus when a landlord serves a schedule at the termination of a lease requiring the property to be returned in accordance with the lease terms, i.e. in full repair and decorated. |
The Schedule is Served
When a schedule is received, whether during or at the end of the lease term, enlist the help and advice of a professional surveyor who has a track record in negotiating and resolving dilapidations. Whilst a cost, by way of fees, will be incurred these may well be offset by reductions that can be made against the original claim.
Dilapidation claims are not a simple matter of accepting the conclusions reached in the schedule and then either undertaking the works as described or settling by way of monetary compensation. The claim must be reviewed to ascertain whether or not it is fair, whether the costs are realistic and whether the lease terms have been interpreted correctly. |
| In a majority of instances this is often the fi rst time that the lease will have been read, despite the fact that the lease will have been signed and in force for a number of years, but because it has been part of the legal process ‘a head in the sand ‘mentality is adopted. |
Protecting your Position
Having made a decision to enter into a lease ensure that you do not sign any documentation until you fully understand what you are signing, as invariably you will be responsible for keeping the property in good repair and condition as well as being decorated during and at the end of the lease. Hidden in the terms will be a requirement that you will have to pick up all costs incurred as a result of your non-compliance with the lease terms at any time during the period that the lease exists.
To help preserve your position with regard to repair and condition, ensure that a record of the present state of repair and decoration is prepared, by way of a written report and photographs, which is then attached to the lease, and ensuring that the repair clause refers to the attached report. |
Tyre and Exhaust Workshop in Slough.
Acting as retained agents for National Tyres & Autocare the original claim was £128,470.00. It was discovered that the landlord had several buildings on the site. Following our research it became apparent that the landlord was considering long term redevelopment of the whole site. Our approach was to argue that the workshop should be put back into a marketable condition for short term lettings rather than carry out all the repair obligations under the terms of the lease. This was accepted and the lesser claim of £58,100.00 refl ected the works that were agreed.
“Once again FEL have delivered significant cost savings to our business and we are delighted with the results.”
Tony Neill - Chief Executive, National Tyres & Autocare |
| For further information visit www.fairhurst-estates.co.uk/dilapidations.asp |
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