Dilapidations for Tenants

Tenants generally seek to minimise / mitigate property running and relocation / closure costs. Business lease clauses relating to repair liabilities or reinstatement obligations at the end of a lease are often not fully appreciated when premises are being acquired. Pre-lease survey and advice from Gemstock prior to signing up to new leases can help tenants understand the terms they are potentially signing up to and sometimes our advice is to seek to renegotiate terms and / or limit future repair liability by way of a Schedule of Condition. At the very least pre-lease survey will identify the building construction and likely repair liabilities and methods to mitigate deterioration during the lease term and hence reduce running costs.

Are the defects the responsibility of the landlord or the tenant? Gemstock surveyors are experienced and well placed to investigate and report on specific defects or issues of particular concern.

Legal Documentation Appraisal, in the context of dilapidations advice for tenants, involves a thorough review and evaluation of existing legal documents to advise the tenant as to their dilapidation liabilities. Legal documentation appraisal prior to an intended property lease involves review of draft lease documents and liaison with the tenant and their legal advisor to suggest changes.

Lease breaks are a complicated area of dilapidations and ideally one or even two years advance planning is necessary in some situations in order to plan for and exercise a tenant lease break. Gemstock are experienced at working with the tenants legal advisor to help advise and implement strategies to exercise a tenant lease break.

Lease breaks are a complicated area of dilapidations and ideally one or even two years advance planning is necessary in some situations in order to plan for and exercise a tenant lease break. Gemstock are experienced at working with the tenants legal advisor to help advise and implement strategies to exercise a tenant lease break.

Estimating the cost of works requires a systematic approach, involving detailed assessment, accurate calculations, and thorough documentation. Gemstock can help develop reliable cost estimates for various property projects.

If you are the tenant then the likelihood is that you will need help to defend or mitigate the landlord’s schedule of dilapidations claim and Gemstock are specialists in this area. Gemstock leverage our expertise in understanding the precise terms of your lease and related documents, with our knowledge of building construction, building contracts, defects, remedies, construction costs, property values, and case law to help mitigate tenants end of lease liabilities. Occasionally if you are the tenant then you may have an undertenant and if so, Gemstock can help you by preparing a Schedule of Dilapidations to pass some or possibly all of the landlords claim onto the undertenant, thus substantially mitigating or eliminating tenant liability to the landlord.

Gemstock have a good track record in being able to negotiate landlords claims down to mitigate tenantsettlements, especially in the context of dilapidations disputes, and requires a strategic approach and effective communication skills.

A Schedule of Condition (sometimes known as a Condition Survey) is particularly useful to serve as a reference point to assess any changes or damage that occur over time particularly if dealing with a lease of a dated property. An appropriately prepared Schedule of Condition undertaken before signing up to a lease can be an effective method to limit tenants end-of-lease liabilities. Gemstock are experienced in undertaking a Schedule of Condition. A Schedule of Condition is also useful and recommended if the tenancy is changing hands through company merger or acquisition or assignment.

Dilapidation Surveys are inspections conducted to assess the condition of a property, specifically to identify any disrepair, damage, or breaches of lease obligations by the tenant. These surveys are useful at any stage in the lease term, particularly in the run up to the end of the lease term.

Interpreting lease clauses accurately is essential for understanding your obligations and rights regarding property dilapidations. By thoroughly reading the lease, consulting with experts, and seeking clarification when necessary, you can ensure compliance and avoid potential disputes. Proper interpretation helps both landlords and tenants manage their responsibilities effectively and maintain a positive leasing relationship.

Lease surrenders can also be a complicated area with regard to dilapidations. Gemstock are experienced at working with the tenants legal advisor to help advise and implement strategies to exercise a tenant lease surrender.

Budgeting for dilapidations liabilities requires careful planning, thorough assessment, and proactive management to ensure compliance with lease obligations and minimise financial impact. By following certain steps and seeking professional advice from Gemstock, tenants can effectively manage dilapidations liabilities.

Gemstock are experienced in overseeing dilapidation and related works which requires planning, clear communication, diligent contract administration, and adherence to legal and regulatory requirements.

Damages recoverable for breach of a covenant to repair are capped by S.18(1) of the Landlord and Tenant Act 1927: Damages for a breach of a covenant or agreement to keep or put premises in repair during the currency of a lease, or to leave or put premises in repair at the termination of a lease, whether such covenant or agreement is expressed or implied, and whether general or specific, shall in no case exceed the amount (if any) by which the value of the reversion (whether immediate or not) in the premises is diminished owing to the breach of such covenant or agreement as aforesaid; and in particular no damage shall be recovered for a breach of any such covenant or agreement to leave or put premises in repair at the termination of a lease, if it is shown that the premises, in whatever state of repair they might be, would at or shortly after the termination of the tenancy have been or be pulled down, or such structural alterations made therein as would render valueless the repairs covered by the covenant or agreement. Gemstock are skilled in utilising S.18(1) arguments to mitigate claims that tenants receive from landlords.

As an expert witness, Gemstock’s specialists require not only technical expertise but also an understanding of legal procedures, courtroom etiquette, and ethical responsibilities. Our experts play a critical role in helping courts and associates understand complex technical issues, contributing to the fair and just resolution of disputes based on evidence and expert opinion.