Commercial Property Dilapidations

The term dilapidations typically refer to damage or defects to a commercial property resulting from a breach of the tenant's lease repairing covenants.

In most commercial leases, the tenant is required to carry out certain repairs and keep the property in good order. If your commercial property has suffered damage or disrepair due to a breach of a lease agreement by a tenant, it may be possible to claim the cost of undertaking any necessary repairs.

At Wembley Solicitors, our commercial lease Solicitors have the specialist legal expertise and experience to resolve your dilapidations matter and bring a successful claim for any losses.

If you are a commercial landlord, we will ensure your lease agreement dilapidations clause gives your business the legal and financial protection it needs.

Likewise, if you are a tenant, we can negotiate the terms of a commercial lease dilapidations clause before you 'sign on the dotted line', explain your obligations, and assist with any repairing covenant dispute.

For legal advice on dilapidations and disrepair obligations, speak to our commercial dispute solicitors on 020 3417 3700 or fill in the online enquiry form.

No matter where your commercial property is, our property solicitors provide commercial property dilapidation related services throughout England and Wales.

Table of Contents

1. What are commercial property dilapidations?
2. What types of issues are included in dilapidations?
3. What is section 18 dilapidations?
4. What is the Schedule of Dilapidations?
5. Dilapidations clauses in commercial leases
6. Dilapidation claims solicitors
7. Why choose Wembley Solicitors?
8. Need legal advice & assistance?

What are commercial property dilapidations?

Commercial property dilapidations refer to the condition or state of disrepair of a leased commercial property at the end of the lease term. When a tenant rents a commercial property, they are often responsible for maintaining and returning the property in a certain condition as outlined in the lease agreement. This includes keeping the property in good repair, making necessary repairs, and complying with any specific maintenance obligations mentioned in the lease.

At the end of the lease term, the landlord may carry out a dilapidations survey to assess the condition of the property. This survey helps identify any repairs or reinstatement work required to restore the property to its original state or the condition specified in the lease agreement. The cost of these works is usually the responsibility of the tenant, as outlined in the lease's dilapidations clause.

What types of issues are included in dilapidations?

Dilapidations can include a range of issues, such as:

1. Physical damage: This involves any physical damage or deterioration to the property, such as broken windows, damaged flooring, leaking roofs, cracked walls, or malfunctioning fixtures.
2. Wear and tear: Over time, normal wear and tear can occur, including worn-out carpets, faded paintwork, or scuffed surfaces.
3. Failure to repair: If the tenant fails to address necessary repairs during the lease term, such as fixing plumbing leaks, electrical issues, or structural problems, it can lead to dilapidations.
4. Alterations and reinstatement: If the tenant made alterations or additions to the property, such as installing partitions or modifying the layout, the lease agreement may require them to reinstate the property to its original condition at the end of the lease. Failure to do so would result in dilapidations.
5. Compliance issues: Dilapidations can also arise if the tenant fails to comply with statutory obligations, such as maintaining fire safety equipment, ensuring proper ventilation, or adhering to health and safety regulations.

What is section 18 dilapidations?

Section 18 dilapidations, also known as Section 18 of the Landlord and Tenant Act 1927, is a legal provision in the UK that impacts dilapidations claims between landlords and tenants. It outlines the rights and obligations of both parties concerning the repair and maintenance of leased properties.

Under Section 18, if a landlord wishes to claim damages from a tenant for dilapidations at the end of a lease, they must serve a written notice on the tenant specifying the disrepair issues and the estimated cost of the repairs. This notice is commonly referred to as a "Section 18 Notice."

Once the Section 18 Notice is served, the tenant has the opportunity to respond and either admit or deny liability for the dilapidations claimed. If the tenant admits liability, they can negotiate with the landlord for a settlement regarding the repairs and associated costs. If the tenant denies liability, the matter may proceed to court, where the court will determine the appropriate course of action.

What is the Schedule of Dilapidations?

A Schedule of Dilapidations, commonly referred to as a dilapidations schedule, is a document that outlines the disrepair or breaches of lease obligations identified in a commercial property. It is typically prepared by the landlord or their surveyor and serves as a formal record of the dilapidation claim against the tenant.

Dilapidations clauses in commercial leases

Dilapidations clauses in commercial leases are contractual provisions that outline the rights, obligations, and procedures related to dilapidations between landlords and tenants. These clauses define the responsibilities of the tenant regarding the condition and maintenance of the leased property during and at the end of the lease term.

Here are some common elements found in dilapidations clauses in commercial leases in the UK:

• Repair and maintenance obligations
• Reinstatement obligations
• Schedule of condition
• Dilapidations survey
• Remedial works and costs
• Negotiation and settlement
• Arbitration or litigation

Dilapidation claims solicitors

Our team of property litigation solicitors in Wembley, London has years of experience dealing with dilapidation claims.

We can advise on all aspects of commercial property lease dilapidations, including:

• Drafting and negotiating a dilapidations clause
• Drafting a Schedule of Conditions
• Advise on breaches of repairing covenants
• Explaining the legal remedies available in the event of a breach of a repairing covenant
• Dilapidations disputes
• Bringing a dilapidation claim
• Explaining the other implications of dilapidations on your commercial lease, e.g. rent reviews, bringing the lease to an end, and renewing the lease

Why choose Wembley Solicitors?

• We have extensive knowledge and experience in dealing with commercial property dilapidation claims.
• Our commercial property solicitors charge an affordable fee without blowing your budget and with no hidden costs.
• We provide professional legal advice and assistance at every step and keep you updated as your matter progresses.
• We provide legal services remotely throughout England and Wales. You do not need to physically attend our office.
• We have a team of qualified and accredited solicitors.
• We are authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you are in safe hands.

We provide legal advice and services to both landlords and tenants. Call our commercial property solicitor today at 020 3417 3700 for more information about our services.