Dilapidations - Tenants

Warehouse Docks

Dilapidations Mitigation & Lease Exit for Tenants

Acting for both landlords and tenants, we provide proactive, result-driven strategies on how best to manage dilapidations issues, both during a lease (interim dilapidations) and in relation to a lease at expiry (terminal dilapidations). This includes advice regarding lease break options which may be conditional on repair, reinstatement, decoration and other lease obligations being compliant. Businesses which are not represented have the potential to be exposed to substantial claims.

As tenant, for accounting purposes it may be required to have an estimate of potential dilapidations liability three to four years before the end of a lease and it is often sensible to be prepared sooner rather than later. We can provide such estimates in most formats required.

Budworth Hardcastle can advise you on how best to mitigate your liabilities as a tenant; reviewing the lease versus the physical property, managing specification, tendering and implementation of repairs, and/or handling negotiations. We can also advise on technical validity of the claim and aspects such as “suppression”, which may, where a landlord proposes certain future works, reduce the dilapidations claim.

Likewise, we can advise on the implications of dilapidations Protocol and legislation including Section 18 of the Landlord and Tenant Act 1927. Usually the cap to any claim for dilapidations is limited by the “diminution in the landlord’s reversion” and a landlord cannot claim a cost of works which is more than the actual loss that would be suffered taking into account market letting conditions, nature of the building and surrounds. When necessary, our in-house RICS Registered Valuers can provide Section 18 Valuations or Diminution Valuations to assist both landlords and tenants.

While it cannot be guaranteed on every occasion, we have regularly negotiated savings for tenants in excess of 50% of the original landlord dilapidation claim. We have also successfully organised relevant repair works in order to minimise dilapidation claims and associated claims for loss of rent etc. Our results speak for themselves and we would be happy to discuss your specific situation and potential strategy with you.

Howes Percival Northampton

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Key Contacts

Steve Banks

Steven Banks
BSc (Hons) MRICS

Director, Chartered Surveyor

Telephone: 01604 604070
Mobile: 07717 701768

Nicholas Galloway

Nicholas Galloway BSc (Hons) MRICS

Director, Chartered Surveyor

Telephone: 01604 604070
Mobile: 07795 412323

Peter Wareing

Peter Wareing BSc (Hons) MRICS

Chartered Building Surveyor

Telephone: 01604 604070
Mobile: 07957 902581

James Barker

James Barker
BSc (Hons)

Building Surveyor

Telephone: 01604 604070
Mobile: 07494 426609

John Burditt

John Burditt
BSc (Hons) MRICS

Chartered Building Surveyor

Telephone: 01604 604070
Mobile: 07917 767076

Will Howells

William Howells BSc (Hons) MRICS

Chartered Building Surveyor

Telephone: 01604 604070
Mobile: 07494 426606

team member

Julie Metcalfe

PA to the Building Consultancy

Telephone: 01604 604070

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Since 1994