A claim in dilapidations covers a tenant’s obligations to repair and redecorate the property. Generally claims are brought at the end of the tenant’s lease and will also require a tenant to re-instate any alterations that it has made. Following the expiry of the Lease the landlord will be entitled to bring a claim for compensation for the tenant’s failure to comply with its obligations.
The extent of the obligations will be governed by the terms of the Lease. However, a landlord’s claim will be limited to its actual loss. Whilst the costs of the repairs provides a useful starting point (especially where the landlord has or can show that it intends to undertake the repairs), this will not represent the true loss where the landlord intends to demolish the premises or is able to sell/re-let the property without the need for undertaking the repairs.
In addition to the costs of the repairs a tenant may find that it is facing a claim by the landlord for the rent and associated costs that it would have received during the period which it has to put the property in repair.
In the current market there has been an increase in disputed dilapidations claims as landlords strive to ensure that their properties are in the best condition to attract new tenants.
For Landlords
Consideration must be given to the terms of the Lease, the extent of the tenant’s repairing obligations, whether any notices are required to be served to trigger the tenant’s obligations and whether it is your preference for the work to be carried out by the tenant or payment made in lieu.
The experienced solicitors at SA Law will guide you through necessary decisions to ensure that you are fully compensated for any losses suffered.
For Tenants
You should take early advice to ascertain whether your best option is to carry out the work before the end of the term or to negotiate payment for any breach following the termination of the Lease. It is important to remember that the following the expiry of the lease you will not be entitled to access to the property to undertake any repairs.
SA Law solicitors provide strategic advice to ensure that your liability is minimised. We will ensure that you are not making payment for losses which the landlord has not suffered and are only making payment for sums due under the Lease.
Contact Us
For further information or to discuss a particular matter or situation in more detail, please contact the Head of Property Litigation and Partner of SA Law; Lynsey Newman on 01727 798096 or by email at lynsey.newman@salaw.com.