Toward the end of the lease (dilapidations)

Pay your fair share – but no more: get a Schedule of dilapidations

At the end of the lease the Landlord will likely require the Tenant to carry out work in accordance with the lease.  This is referred to as a ‘dilapidations’ claim.  A claim must be made in the form of a Schedule of dilapidations and must be prepared in accordance with the Property Litigation Association’s protocol.  This requires the early exchange of information and the schedule to be prepared in a specific way, to make the negotiations easier between the Landlord’s surveyor and the Tenant’s surveyor.  The aim of the protocol is to resolve dispute with minimum cost and without the need for proceedings.

Accompanying the Schedule should be a Claim which should include: what the Landlord is claiming as damages including a detailed estimate of the work; the Landlord’s VAT status; any other claims such as professional fees, loss of rent, etc.

The Tenant will also need to take advice at this time.  The Code of Practice for Commercial Leases advises in section 18 that Tenants should take the advice of a property professional about their obligations, near the end of the lease and also immediately upon receiving a Schedule of dilapidations.

For more information view  A Code of Practice for commercial leases.

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