Dilapidations/Schedule of Condition
Dilapidation claims can be a source of contention between commercial landlords and their tenants. These disputes can often be settled out of court with careful negotiation. We act for both landlords and tenants who are dealing with dilapidation issues.
Our commercial property solicitors can also help advise on a schedule of condition. This is one of the most effective ways to minimise the risk of a dilapidation dispute. A schedule of condition should be prepared prior to the signing of the lease by a suitably qualified surveyor.
For a free quote, call us on 0191 567 7244 and we’ll be happy to help you.
Schedule of dilapidations
A commercial lease usually requires that the tenant keep the property in a good and substantial state of repair and condition. The tenant is obliged to repair any defects that arise during their tenure.
When a commercial lease draws to a close, it is common practice for a landlord to get a dilapidation schedule. These are typically drafted by building surveyors. They detail the tenant's outstanding repair obligations and the cost of completing the works.
A dilapidation schedule may also be served on a tenant during their tenure, or up to 56 days after the commercial lease has ended.
A tenant may dispute the contents of a dilapidation schedule – either because they do not agree with the cost, or because they do not think they are responsible for the repair.
Schedule of condition – preventing a dilapidation claim
The risk of a dilapidation claim can be minimised with a schedule of condition.
A schedule of condition shows what the property looked like at the start of the lease term. It acts as a record that can be referred to at a later date, should the landlord make a dilapidation claim. It includes extensive photographs and descriptions of any defects or potential issues that were present before the tenant moved in.
A schedule of condition benefits both parties. The tenant won’t have to pay for repairs that were present when they took on the lease. Conversely, the landlord will have proof that certain dilapidations occurred under the tenant’s watch.
A schedule of condition should be drawn up before the commercial lease is signed. Ideally, a schedule of condition will form part of the initial negotiations to be included in the Heads of Terms.
Our commercial property solicitors can advise you on the need for a schedule of condition. We can organise the schedule on your behalf as part of the initial lease agreement process.
Speak to our commercial property solicitors
Our commercial property solicitors act on a fixed fee basis. This starts with a free initial consultation. Contact us to discuss your requirements. Afterwards, we provide a fixed fee quote with no hidden charges.
Get a free, no obligation quote from our commercial conveyancing solicitors. Call us on 0191 567 7244 and we’ll be happy to help you.