Dilapidation surveys assess the condition of a commercial property to determine if the tenant has met their lease obligations regarding any required repairs, maintenance or reinstatement works.
As an essential part of the leasing process, the information collected through a dilapidation survey ensures expectations about any obligations about how the property should be maintained are clearly defined.
The survey findings can also be used to create subsequent reports at various points during the lease period. This makes dilapidation surveys valuable for both parties, including to reduce legal issues and costs.
Based in the North West, Anderton Gables is a leading provider of dilapidation surveying and reporting in the UK.
Our building surveyors conduct a range of dilapidation services on behalf of commercial landlords and tenants.
Dilapidations Surveys
James Batey
Head of Building Surveying
Richard Chandler Senior Associate Director
Paul Magill
Associate Director
Download our guide & process to Dilapidations
For both Landlords and Tenants/Occupiers
What Is A Dilapidations Survey?
During a commercial dilapidations survey, a property will be thoroughly inspected to assess its condition.
Based on the findings and overall purpose of the survey, subsequent reports can be put together to ensure that the property is maintained in accordance with the lease terms.
Conducting dilapidations surveys at regular intervals creates reference points for the condition of the building. It helps determine required maintenance works and costs, outlines any breaches of the lease and also protects tenants from being held for damages that were pre-existing.
Depending on the timing and purpose of the survey, we can arrange one of the following dilapidation survey types on your behalf:
Pre-lease: Schedule of Condition Survey
During the lease: Interim Schedule of Dilapidations Survey
Before lease expiry: Terminal Dilapidations Survey
Post-lease: Final Dilapidations Survey
Unsure which dilapidations survey type is the right fit for your needs as a commercial landlord or tenant?
When you work with us, our surveyors can provide you with tailored advice. Crucially, we’ll keep you informed throughout your lease period about the surveying and reporting that would be of benefit to protect your commercial interests.
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How Do Dilapidations Surveys Work As A Landlord Or Tenant?
The dilapidations process can look very different depending on whether you are a landlord or tenant.
However, something that a dilapidation survey can achieve for both parties is to outline any obligations. The survey findings can be used to inform any negotiations and ultimately ensure a fair outcome is reached.
For Tenants
Tenants can use dilapidation surveys to plan for any costs they may be liable for as part of their lease exit strategy. For instance, any reinstatement works outlined in the lease. Furthermore, tenants can also use dilapidation surveys and reports to ensure they are not subject to excessive or unfair claims by their landlord. Sometimes, this is classed as supersession and is when a tenant is expected to pay for remedial works despite the landlord planning to demolish the building or undertake substantial renovations. Therefore, a dilapidations survey can help tenants avoid unfair repair costs, ensure fair negotiations and provide legal protection in a multitude of scenarios.
For Landlords
As the owner of the property, landlords have an inclination to ensure their asset is well maintained by the tenant so that the property is returned to them in a lettable condition. If there is a breach in the lease obligations, the landlord can schedule a condition report to ensure they are fairly compensated to restore the property. A dilapidation report can also benefit landlords by revealing information about the condition of their asset at any given time. This information can then be used to inform their overall investment strategy.
2. On-Site Inspection
Our surveyor will visit your commercial property to assess its physical condition. Depending on the type of building, additional specialists or equipment may also be required.
For example, to inspect an industrial roof a cherry picker can be used to provide a clear vantage point. Any such particulars will be discussed with you in advance during the survey preparations so that you’ll know what to expect.
Every building is different. However, a typical dilapidation survey checklist can involve inspecting the following aspects of the building:
Walls, floors, and ceilings for structural damage
Windows, doors and roofing for defects
Mechanical and electrical systems (HVAC, lighting, plumbing)
Decorative finishes to check if redecoration is needed
Alterations made by the tenant, which may require reinstatement
Throughout, your surveyor will take detailed notes of the condition of each building aspect along with photographs to support their evidence.
Pre-Survey Preparation
Before we visit your location to carry out the survey, we first need to ascertain the purpose of the survey.
We will also take the opportunity to review any existing lease agreements, including aspects relating to the obligations to repair, redecorate or reinstate the building.
Or, if we are instructed to carry out inspection based on an existing lease, we will review the Schedule of Condition which was prepared at the start of the lease.
What Happens During A Dilapidations Survey?
When you work with us here at Anderton Gables, your building surveyor will shape the approach to your dilapidation survey based on your objectives as a landlord or tenant. The process can vary depending on the purpose and timing of the survey, but generally involves the following steps to ensure a fair and accurate evaluation of the building condition.
3. Schedule of Dilapidations Report
Based on the findings of the survey, the surveyor will then compile a report to satisfy the objectives of the party which requested the survey. This is known as a Schedule of Dilapidations Report (SoD).
A dilapidations report will detail the improvements or repairs that need to be made based on the conditions of the lease. Each of the recommended actions will be accompanied by the estimated repair costs.
Once completed, the report can then be issued to the tenant including to use as part of any negotiations. The tenant can also challenge any excessive or unfair claims and can conduct their own counter-survey to dispute costs, including to argue supersession.
4. Resolution & Final Steps
With any negotiations complete, a settlement can then be reached. Tenants can either choose to carry out any necessary repairs or pay a financial settlement to the landlord.
When Is A Dilapidations Survey Needed?
Dilapidations surveys can be invaluable at various points throughout a commercial lease.
As a tenant, instructing a surveyor to conduct a Schedule of Condition Survey before moving into the building can protect your interests. That’s because it will give you a full picture of the condition of the building and can offer protection from being held responsible for pre-existing damages at the end of the lease.
During the lease, an Interim Dilapidations Survey can be used to monitor the condition of the building. Crucially, it provides an opportunity for preventive maintenance and can also work to reduce the cost of potential works by identifying issues early. Tenants may also wish to schedule an interim survey to ensure compliance and ultimately reduce the potential for large dilapidation claims at the end of their lease.
It’s also possible to conduct a dilapidations survey towards the end of a lease and once a lease has ended. The purpose would be for either party to settle any outstanding issues based on the lease obligations for the property to undergo repairs, reinstatement or redecoration works.
How Do Dilapidation Surveys Work Alongside Our Other Services?
Anderton Gables conducts dilapidation surveying and reporting as part of our vast data capture and measurement services.
We can arrange a dilapidation survey as a stand-alone service, or combine it with our other specialisms depending on the needs of your business or organisation.
When you get in touch about your project, our surveyors can explain additional survey types or services that would be of most benefit based on your requirements.
Why Are Dilapidations Surveys Important?
Dilapidations provide an professional assessment of the condition of a building at specific intervals during a lease period. With this information, both landlords and tenants can remain informed about any maintenance expectations. All of which can work to reduce the potential for disputes, manage costs and protect the value of the property.
Should either the landlord or tenant raise a dispute (a dilapidations claim), a dilapidations report can be referenced to determine the next steps. For instance, if a tenant is liable for remedial works based on a lack of maintenance, or there is a need to reinstate any building features as agreed.
Beyond settling disputes, obtaining information about the condition of a commercial building can be valuable in lots of other ways. For landlords in particular, understanding if any major repair or general maintenance works are needed can help protect the long term value of the building. This information can also be used to inform any investment decisions.
Why Choose Anderton Gables For Dilapidations Surveys In Lancashire, Merseyside Or Greater Manchester?
At Anderton Gables, we recognise the importance of dilapidations surveys when wanting to protect your commercial interests as a landlord, or to reduce any liabilities as a tenant.
Our dilapidation surveys are carried out by our highly experienced and RICS-regulated building surveyors.
Based on the purpose of the dilapidations survey, we diligently shape our approach so that your objectives can be met. If subsequent reporting is also required, we can also produce this on your behalf.
Having represented both landlords and tenants, this also provides us with the unrivalled ability to negotiate to ensure the correct outcome is achieved. Ultimately, we can provide accurate answers that seek to reduce unnecessary costs and delays.
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Benefits Of Dilapidations Surveys
Dilapidations surveys are conducted by expert building surveyors. Their methodical approach can reveal a wealth of information to protect the interests of landlords and tenants alike.
Based on the commercial clients we serve across the North West of the UK, these are some of the top benefits that dilapidations surveys can provide:
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Commercial property is a valuable asset. But given the volatile retail market, it is also true that commercial property can be subject to value fluctuations. By relying on the expertise of a surveyor, landlords and investors can remain informed about the condition of their property.
Should any maintenance works or repairs be required, dilapidations surveys can ensure any issues are promptly addressed. When new tenants move into the building, providing accurate information about its condition and maintenance needs can also look to reduce potential disputes. Accurate building condition reporting can also be used to inform rental valuations.
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A major advantage of dilapidation surveys is that they don’t just have to happen at the end of the lease, as they can also be conducted at specific periods during a lease. By doing so, landlords can encourage timely maintenance of issues to reduce the potential for greater costs down the line. If a landlord has any concerns about the upkeep of a building during the lease, then conducting a survey and producing a report gives the tenant a chance to remedy any issues at the earliest opportunity.
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Landlords can also use dilapidation surveying and reporting to create a preventive maintenance schedule. This can also help ensure the building continues to receive the necessary care and attention, including based on any aspects which may be more susceptible to damage or deterioration. Overall, preventive maintenance is essential for maintaining the value of the property over the longer term.
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Landlords and developers often seek out the term ‘dilapidation survey construction’ to understand their legal requirements as building owners. As surveyors, we are best positioned to advise you to ensure any building you own meets all appliance requirements for health and safety. Should any breaches be identified, we can then advise on the next steps to remedy any issues. Likewise, since building regulations are subject to change over time, undertaking regular dilapidation surveys can help avoid any nasty surprises which can result in unexpected costs or legal action down the line.
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Commercial tenants can also greatly benefit from the advice of a surveyor throughout their lease period. In particular, when a tenant conducts their own dilapidation well before the lease expiry, this provides ample opportunity to assess the scope of work that may be required along with any costs. Overall, dilapidation surveys and reports help tenants develop an exit strategy including budgeting for any upcoming repairs.
Also, in the event that potential claims brought against tenants by their landlords are not considered to be justified (i.e. if the landlord plans to demolish the building), a surveyor can also assist tenants through the supersession process. This ensures tenants are not made to pay for works which are unnecessary.
Dilapidation Survey Case Studies
Take a look at some recent dilapidation surveys we’ve carried out across the North West region in the UK.
Dilapidation Survey UK FAQs
Have a question about getting a dilapidation survey? We’ve answered some of the most popular queries below.
For anything else or to arrange a consultation please contact our team in Liverpool, Manchester or Preston today on 0161 696 3119.
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In the property leasing process, a Schedule of Dilapidations acts as a key document to ensure that tenants understand their obligations. It also provides peace of mind for landlords to be able to protect their investment.
A building surveyor will prepare a Schedule of Dilapidations on behalf of the landlord. The report will detail the condition of the building, including recording the condition prior to new tenants moving in or out. The aim is to determine any potential breaches of covenants, and ultimately to ensure that the building is handed back to the landlord in the agreed condition.
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At Anderton Gables, we believe in a proactive approach when it comes to dilapidations surveys. Simply put, the sooner you arrange a survey, the better position you’ll be in to avoid unnecessary costs regardless of whether you are the landlord or tenant.
As a landlord, we can conduct a Schedule of Condition at the start of the lease and an interim dilapidations survey during the lease. Additional surveys including terminal and final dilapidation surveys can also be arranged.
For commercial tenants, we can conduct a Dilapidations Liability Assessment (DLA) 12 months prior to the end of the lease. Doing so enables you to create a bespoke exit strategy, including in a way that avoids unexpected costs or hurdles. -
Typically, the landlord is the party who would arrange a dilapidations survey. This is often when a commercial lease is nearing its end and there is a desire to assess the condition of the property before the current tenant vacates.
Additionally, a landlord can arrange for a survey to be carried out at any time during the lease, including if there are concerns relating to the upkeep of the building.
However, a tenant can also choose to hire a surveyor to address any issues and reduce potential liabilities. Furthermore, a tenant may also wish to involve a surveyor to challenge any claims they feel have been exaggerated.
If you are a commercial landlord or tenant, our surveyors can provide you with specialist advice on all matters relating to dilapidations.
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The UK average cost for dilapidations surveys ranges between £200 and £400.
As you might expect, the cost will depend on a number of factors, including the type of dilapidations survey required.
When you contact us here at Anderton Gables, we can provide you with a tailored quotation based on the scope of your project.
Good to know: Landlords should note that the cost of undertaking a dilapidations survey is usually recoverable from the tenant.
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A dilapidations survey report will provide a comprehensive overview of the condition of a commercial property. The report which is referred to as a Schedule of Dilapidations will outline any breaches in the tenant’s lease obligations. A site dilapidation report will state any applicable repairs, maintenance or reinstatement works required.
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Supersession relates to Section 18 of the Landlord and Tenant Act 1927. It is a term used in dilapidations when a surveyor determines no damages or remedial works are necessary.
Often, this is due to reasons such as the building being obsolete or where there are plans to redevelop.
For tenants, supersession is important to know about as it can result in reduced liability if there is proof the landlord plans to demolish or significantly alter the property.
Supersession can be an essential tool in dilapidation settlements, especially where tenants need to challenge excessive claims made by the landlord. That’s because evidence of supersession means the landlord’s future plans have made certain dilapidation claims unnecessary.
Are you a commercial tenant based in the Greater Manchester area? If you think a dilapidation claim made against you could be classed as supersession, enlist our expert surveyors here at Anderton Gables. We can make a determination to guide you through the next steps and crucially ensure you are not liable for remedial works to which are not justifiable. -
Both interim and terminal dilapidation surveys are ways that landlords can determine the condition of their asset. Crucially, both survey types also give tenants an opportunity for tenants to fulfil their responsibilities. However, the main differences relate to the timing of the surveys and their overall purpose.
Interim dilapidation surveys are conducted during the lease team. The purpose is to ensure the tenant is maintaining the property in line with their obligations. Should the landlord be concerned about the condition of the property, an interim survey gives the ideal opportunity to address any issues and reduce the potential repair costs. Any repairs required following an interim survey would be issued as part of an Interim Schedule of Dilapidations.
Terminal dilapidation surveys happen towards the end of the lease. They outline the condition of the property and determine the repairs or reinstatements the tenant will need to undertake before they vacate the property.
Unsure whether you require an interim or terminal dilapidation survey? Our surveyors here at Anderton Gables can provide you with tailored advice. -
No, it is not the case that a dilapidations survey should accompany every commercial property lease. However, having a building dilapidation report is usually strongly advised.
In some instances, such as short term leases or for fully managed properties which have regular maintenance inspections, a dilapidations survey isn’t always warranted. Likewise, a dilapidations survey may be unnecessary if the tenant and landlord have another agreement in place or the property is generally very well maintained.
It is important to seek advice specific to your particular case. That’s because forgoing a dilapidation survey where it would be of benefit can put both parties at risk of financial or legal issues.
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At Anderton Gables, we specialise in all areas of dilapidation reports. Typically, dilapidation surveying and reporting are required on behalf of our commercial property clients (i.e. buildings such as shops or warehouses). However, it may also be the case that you are a landlord of residential property in the North West and need our expertise.
If it is deemed a tenant has neglected a property and the damage is beyond the expected ‘wear and tear’, we may be able to compile a residential dilapidation report.
To be able to meet your dilapidation report requirements, it is essential to contact us at the earliest opportunity to arrange a residential dilapidation report.
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Building surveyors can provide an independent opinion regarding the condition of commercial property.
Depending on whether they are acting on behalf of a landlord or tenant, surveyors can be brought in to give advice, act as expert witnesses or assist in dispute resolution.
Based on which side the surveyor is called to represent, the process can look like so:As a landlord, surveyors conduct the survey, prepare the Schedule of Dilapidations, advise on legal compliance and support negotiations.
As a tenant, a surveyor can assess the validity of any claims made in a dilapidation survey report. They can provide expert advice, conduct a counter Condition Survey and recommend any repair strategies.
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Anderton Gables - Enquire About Our Dilapidation Surveys
Anderton Gables is based in the North West of the UK with offices in Liverpool, Manchester and Preston.
To arrange a dilapidation survey as a commercial property owner or tenant please get in touch with our team.
Alternatively, give us a call on 0161 696 3119 to find out more.