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Dilapidations Disputes

Dilapidations refer to maintenance, repair, and reinstatement obligations that a tenant may be required to fulfil under a commercial lease before leaving the property.

Mark Oakley

Partner – Solicitor

Property Litigation

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Dispute Resolution Specialists

Property Law Experts

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The terms of the lease are the starting point when dealing with dilapidation matters. The lease should stipulate the condition that the property needs to be kept in and the obligations of the landlord and tenant.

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Dilapidation Disputes Procedure

In the event that a tenant fails to comply with its repairing covenants, the landlord is entitled to bring a claim for damages.
If the lease has ended, the parties must follow the Pre Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy (“the Dilapidations Protocol”)
The Dilapidations Protocol emphasises communication and negotiation to avoid court action.
The first step under the Dilapidations Protocol is for a landlord to formally serve a schedule of dilapidations on the tenant, which includes the projected sum of damages.
The tenant will respond to this schedule, and the parties will attempt to reach a settlement by utilising Alternative Dispute Resolution. If all of the pre-action methods are unsuccessful, parties can take unresolved disputes to court.
The starting position for the measure of damages is the cost of repairing the property to put it in the condition stipulated in the lease. This applies only to a repairing covenant, not to decorating or positive covenants at the end of the lease. Depending on what the lease says this means the amount of damages can vary greatly.
In assessing the level of damages, the court will consider whether the landlord intends actually to carry out the work. If this is not the case, the damages awarded may be reduced.
The landlord can claim for lost rent during the time that repairs are being carried out.

How We Can Help

We can assist in interpreting the terms of the lease to determine exactly what your obligations are. This can be done when the lease begins to avoid disputes in the future and so that you can take actions during the course of the lease to meet your obligations.
During the lease, we can advise on the obligations that must be followed.
Repairs can be carried out after the lease has ended, but reminding the tenants during the lease of their obligations may avoid a dispute later. Landlords can claim for lost rent during repairs.
A surveyor is required to produce a report which will guide the court in calculating damages.
If a dispute has arisen during the lease, or you discover damage after the lease has ended, we can act for you and guide you through the dispute process.
If you are a tenant being faced with a claim for damages for dilapidations, we can act for you and seek to resolve the dispute in your best interests.

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Judge & Priestley Property Litigation team has ‘real talent and ability’: the ‘calm, unflappable’ Mark Oakley ‘inspires confidence’ and is ‘excellent on leasehold issues’

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