Dilapidations assessmentsWhat is a Dilapidations Survey?

A dilapidations survey comprehensively assesses a property’s condition, identifying any repairs or reinstatement required to return the premises to their original state as specified in the lease. The resultant schedule of dilapidations serves as a key document in negotiations between landlords and tenants, influencing the financial settlement at the end of the lease.

Company acquisitions also often require dilapidations assessments to be produced where there is a change in landlord ownership or the leasing structure, resulting in an assignment or sub-letting.

Dilapidations assessments are commonly used to enable a tenant to make an accounting accrual or to help decide whether to stay or move.

The Importance of Dilapidations Surveys & Assessments

When a commercial lease ends, landlords often expect the property to be returned in a condition that meets the terms of the lease. However, over time, wear and tear, alterations, and lack of planned maintenance can lead to significant degradation.

Dilapidations surveys identify these issues, offering a clear picture of the property’s condition and the necessary works to restore it to the agreed standard.

For landlords, a dilapidations survey ensures that the property is returned in a condition that maintains or enhances its value, avoiding costly disputes with tenants.

This survey provides tenants with a clear understanding of their obligations, helping to avoid unexpected expenses and potential legal conflicts. Pre-lease end assessments of dilapidations are commonly used to enable a tenant to make an accounting accrual or to help decide whether to stay or move.

How We Can Help

To ensure the reliability of our assessment, we will adopt a forensic approach, with budget estimates supported by the latest cost information and recent project experience.

What to Expect from a Dilapidations Survey

Depending on its purpose, a dilapidations survey is conducted either towards the end of a lease term or during the lease to ensure compliance with the agreement. The survey includes thoroughly inspecting the property, focusing on various elements such as structural integrity, mechanical systems, internal finishes, and external features.

The goal is to identify any lease agreement breaches related to the property’s condition.

The survey results in a detailed report outlining the necessary repairs, reinstatements, and redecoration to return the property to the condition stipulated in the lease.

Benefits of a Dilapidations Survey

Conducting a dilapidations survey offers several benefits:

  • For landlords, it ensures that the property is returned in a condition that does not diminish its market value, which protects the investment.
  • For tenants, it clarifies the extent of their obligations, provides an opportunity to address issues before the lease ends, and potentially reduces the financial impact of dilapidations claims.

Having a dilapidations survey carried out by our team of experienced professionals offers peace of mind. It ensures that all aspects of the property are thoroughly examined and that the resulting report is accurate and reliable.

This comprehensive approach helps both parties navigate the complex and contentious lease termination process and property handover.

How we work with you

We appreciate that wider business decisions may prompt the requirement for a dilapidations survey, and we always undertake site inspections with tact and discretion. Our dilapidations assessments are presented in a concise report with a ‘strict’ and ‘best case’ financial assessment.

Our report includes a detailed breakdown of the repair, reinstatement and redecoration liabilities, which can be used to support procurement of the works or to apportion budget costs between business interests. Contact us today to learn how we can help you with your dilapidation assessment needs. We cover BristolBath, the South West, Midlands, M4 corridor and Wales.

 

Recent experience

  • Operational helicopter maintenance facility, Cheltenham.
  • Victorian high street premises for national retailer, various locations.
  • Two storey office building for housing association, Swindon.
  • 6 storey office building on FRI lease, Plymouth.

I want to enquire about a dilapidations survey

Please provide us with the following information so that we can start to build a picture of the property and prepare an accurate quote:

  • Property address.
  • Summary of the demise (whole property, single floor etc) or a copy of the lease.
  • Floor plans, if available.

Existing commitments are such that we are not currently negotiating terminal dilapidations schedules.