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Dilapidations and Leases:

Schedule of Dilapidations

During or at the end of a lease on commercial buildings, we act for both landlords and tenants in the preparation and costing of Schedules of Dilapidations. Subsequently negotiations with other surveyors is undertaken to reach an equitable settlement between the landlord and tenant regarding their repair obligations contained within the lease.

When acting for landlords our input usually entails:

• Assess and review relevant legal documentation i.e. the lease, any Licence for Alterations or Schedule of Condition.

• Visit premises to undertake a detailed inspection of all accrued disrepair items.

• Take all necessary site measurements i.e. room dimensions, surface areas of walls, floors and ceilings (for pricing purposes).

• Provide a fully costed, itemised Schedule of Dilapidations and duly serve upon the outgoing tenant.

• Negotiate and settle dilapidation claim with the tenant or their surveyor.

When acting for tenants our input usually entails:

• Assess and review relevant legal documentation i.e. the lease, any Licence for Alterations or Schedule of Condition.

• Visit premises to verify the existence, extent and validity of the alleged accrued disrepair items contained within the served Schedule of Dilapidations.

• Based upon visit to premises, formulate initial response to landlord’s surveyor.

• Negotiate and settle dilapidation claim with the landlord or their surveyor.

Schedules of Condition

Prior to agreeing and entering into a lease, whether you are either a landlord or tenant, it is strongly recommended that you commission and agree a Schedule of Condition with the other party. A Schedule of Condition records the condition of the lease premises at or before the lease commencement date. Therefore a Schedule of Condition can limit repair liabilities and avoid lengthy costly disputes with the other party during and at the end of the lease term.

Licence for Alterations

When a tenant wants to alter parts of their leased premises they must obtain permission from their landlord prior to commencing the works. The landlord gives their permission to the tenant by way of granting a Licence for Alteration. Whether acting for the tenant or the landlord, we can specify or assess proposed works, liaise with other parties, and subsequently monitor the works for compliance in accordance with the Licence for Alterations.

Dilapidation Assessment Reports

Prior to tenant’s signing leases/occupying leased premises, it is advisable that a dilapidation assessment is undertaken on the property. This is carried out to identify the likely repair liabilities and costs that would be placed upon the tenant during and at the end of the lease term, in accordance with the proposed lease to be entered into. These assessments can sometimes lead to the prospective tenant choosing alternative premises, which would be less onerous concerning future repair liabilities.

Dilapidation Strategic Advice

When a tenant’s lease is about to expire, or they wish to surrender their lease mid term, we can offer strategic advice on how and what works they should undertake themselves to their property. This advice usually assists the tenant in limiting their repair liability and the costs they have to pay their landlord at the end of the lease term.

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Franks Associates is a Limited Company, trading as Franks Associates Limited. Registered in England and Wales. Company No: 8006647.

Registered Office Address: New Bond House, 124 New Bond Street, London, W1S 1DX.