The Employment Appeal Tribunal (EAT) has found that an Employment Tribunal (ET) erred in law in...
What are dilapidations?
Dilapidations are breaches of a tenant's lease obligations or covenants which can lead to a dilapidations claim. Dilapidations may be damage, disrepair or alterations made to the property that the tenant is liable for rectifying when they vacate the property at the end of the lease term.
When a commercial lease is coming to an end, this is often the trigger for a dispute between landlord and tenant, but a dilapidations claim can be made by the landlord against the tenant during or towards the end of a lease, or after the lease has ended.
The wording of a repairing covenant in a lease will set out the tenant's obligations. If the tenant is not meeting these obligations during the course of the lease, a landlord can serve an interim Schedule of Dilapidations. However if it is served within the last three years of the term of the lease it is known as a terminal schedule. A schedule served at or after the end of a lease is a final schedule of dilapidations.
An interim or terminal schedule specifies both the disrepair alleged by the landlord and the remedial works that the landlord requires the tenant to undertake. A final schedule of dilapidations will also detail the alleged breaches of covenant and details of remedial work required, but the tenant will have no option to carry the works out since its right of occupation will have ended with the lease. In this case, the landlord’s remedy in respect of a final schedule of dilapidations is a claim for damages which will include not only the cost of remedial works, but also loss of rent, service charges, rates, professional fees and VAT for the period during which the property cannot be occupied as a result of the disrepair.
Dilapidations claims can be costly and it is very important to follow the correct process. Our experienced lawyers can help landlords in bringing claims and also assist tenants in defending claims.
Whether you are a landlord or a tenant, if you need advice on dilapidations, contact Charlotte Green on 01827 317071 or cgreen@pickerings-solicitors.com .
