DILAPIDATIONS

Not all lessees are aware of their lease end repair and redecoration liabilities. As a result an expensive shock can await their lease end, and thus the amount one client allowed to repair their warehouse, of £20,000, was 20 times too small.

Or the hairdresser who thought they could hand over the keys and retire, suddenly faced a settlement figure of £40,000.

A Schedule of Condition correctly linked into the lease can limit the end dilapidations claim. One such client was saved a cost close to the cost of rebuilding the small industrial unit.

Freeholders do not always receive a repaired building, or the cost of the necessary work, at the end of a lease, because there have been occasions when the lessee has not been able to afford, or have the assets to cover, the cost of the repairs required because of a long term neglect of the building.

Interim schedules can be useful reminders to both parties of the state of the building and their respective liabilities.

On one mixed use site the lessee is responsible for roof repairs, but on an adjacent roof the lessor has to carry out the work and recover 75% of the cost.

Please contact us to discuss any points or services we can provide.