FAQs

At Robertson Simpson Ltd our role is to ensure both parties receive advice and support to help protect themselves from the outset.

The questions below provide an insight into dilapidations, including the key questions every landlord and tenants should be aware of.

For answers to any of these questions or to discuss your situation, without obligation, please contact a member of our team.

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What are dilapidations claim?

Dilapidations deals with the repair, decoration, reinstatement & statutory obligations within leases.

Dilapidations becomes an issue for a tenant at lease expiry or break clause (and occasionally during a lease) where the tenant is in breach of the repair, decoration, reinstatement, or statutory covenants.

We therefore provide advice to clients on how best to deal with dilapidations.

How likely am I to experience a claim for dilapidations?

  • Almost all commercial tenants accept a dilapidations liability from day 1
  • Your accountants should be accruing for this in your budgets
  • Although you may not be aware of it, it will be part of your landlords budgeted income for the property

Do you work for landlords and tenants?

  • We represent both landlords and tenants both separately and together
  • We also represent both parties and help them reach amicable positions in an exchange.
More

Landlords

  • Insert dilapidations claims into lease agreements

Tenants

  • Insert dilapidations claims into lease agreements

Commercial Tenants

As a commercial tenant, misunderstanding your dilapidations obligations can bring:

  • The commercial risks of breaching lease terms
  • Inability to execute a lease break if you fall foul of often onerous conditions
  • Financial uncertainty of not accruing money to pay for a dilapidation claim
  • Breach of UK accounting standards
  • Failure to take advantage of dilapidations tax free elements
  • ‘Unexpected bill’ at the end of a lease (usually a critical time for a business)
  • Higher repair and reinstatement costs than otherwise necessary.

Key questions for Tenants

Do you fully understand what dilapidations are?
Are you expecting a bill for dilapidations at end of your current lease?
Are you accounting for dilapidations as per UK accountancy standards?
Do you fully understand the obligations and liabilities under the terms of your lease regarding repair, reinstatement, and decorations?
Do you have a lease break, or are you looking to execute a break?
Are you in the last two years of your lease?
Are you looking to repair, alter or improve your property?

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Key questions for Landlords

Do you know that under a lease a tenant is usually required to undertake repair, reinstatement, statutory compliance, and decoration works?
Are you aware that the responsibility for fulfilling these obligations continues throughout the term of the lease, not just at lease expiry?
Are you ensuring that the tenant is maintaining the demised premise correctly and in accordance with your lease obligations?
Is your property in need of urgent repair, and is the current condition affecting its capital value?
Are your fees for a surveyor acting on your behalf the responsibility of the Tenant?

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