AG have a dedicated team of dilapidations specialist’s providing proactive advice to ensure our clients achieve their objectives.
For Who & Where
All dilapidations instructions at AG are handled by a senior member of our Commercial Building Surveying team.
We understand the challenges faced by occupiers in fulfilling their Leasehold obligations whilst focusing on their core business whether that is in retail, office, industrial, or other such commercial property type. We also empathise with the frustration and possible impact of a potentially large unforeseen cost arising at the end of a Lease.
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Our aim is to work closely with our clients to guide them through the process, either from the beginning or at any stage during the Lease should our services become of value.
Our dilapidations services for Tenants include;
- Schedules of Condition and Pre-Lease Assessments prior to entering into a Lease so that you are fully aware of your liabilities
- Negotiating amendments to Lease terms to mitigate future liabilities at Lease commencement
- Assessment of Dilapidations liability for budgeting purposes and as required under the accounting regulations, IFRS 16
- Interim and terminal dilapidations defence
- Negotiation of financial settlement or scope of works at lease end
- Strategic advice and implementation
- Break clause advice and guidance on compliance works
- Portfolio dilapidations provision management
- Tactical defence strategies such as the implementation of Section 18(1) advice
We have a proven track record acting for Tenants and some of our current clients include the following;
- Travis Perkins
- Bet Fred
“My role is to provide commercially aware advice and apply the tactics to minimise your potential dilapidations liability. We can help get you in and help get you out.”
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What our clients say…
“AG have been providing us with dilapidation’s advice for over 3 years. The advice is always professional and has assisted in making significant cost savings against budget. All of the team are friendly, approachable and always act with the client’s best interests. I would have no hesitation in recommending them to others.”
A schedule of dilapidations is a document prepared by a Chartered Building Surveyor acting on behalf of a commercial landlord, which is then served on a tenant. A schedule can be served during or after the lease term has ended. Most commonly, it will be served within the last 12 months of the lease term and will include breaches of the tenant’s obligations.
In most cases, no. We certainly would not recommend paying the landlord’s claim in full before first obtaining advice from a Chartered Building Surveyor with a strong dilapidations background. There are various factors that need to be considered when assessing and preparing a dilapidations claim.
By appointing a Chartered Building Surveyor with and experience of defending tenants. There are various techniques to defending a claim from common law principles to controlling costs before lease end. Our in-house dilapidation experts will provide strategic, commercial advice to defend your position.
AG’s 4 top tips:
- Take advice prior to signing the lease in the form of a Pre-Lease Survey which can be prepared by a Chartered Building Surveyor.
- Commission a Schedule of Condition before the lease to limit your repairing & decorative liabilities.
- Assess your dilapidations liability 12-18 months prior to lease end and adopt a bespoke exit strategy with your Chartered Building Surveyor.
- Appoint a Chartered Building Surveyor to negotiate the dilapidations claim on your behalf.
The landlord’s preparation and service fees are often recoverable under the terms of the lease – but not always. They are also often restricted to meeting certain criteria such as timescales. A Chartered Building Surveyor can advise further in this regard and it will often be factored into the overall dilapidations claim. A Tenant can also be obliged to pay the landlord’s negotiation fees subject to the circumstances and drafting of the lease. Again, a Chartered Building Surveyor can advise in this regard too.
Most commercial leases include an express provision to redecorate at intervals during, and, at the end of the term. However, this can be restricted by a number of factors from the landlord’s intentions for the building to the drafting of the redecoration clause within the lease.
Potentially, yes. However, the Pre-Action Protocol encourages the early and full exchange of information with the aim to avoid litigation. It also promotes the use of Alternative Dispute Resolution (ADR) before a claim becomes litigious and takes the view that court should be a last resort. Notwithstanding, many a dilapidations claim has ended in the courts – expensive! Our dilapidations experts are experienced in ADR methods and have even defended clients in the court room.