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DILAPIDATIONS

DILAPIDATIONS. SURVEYOR’S VIEW. WHAT IS DILAPIDATIONS?. BREACH OF REPAIRING COVENANT BREACH OF DECORATING COVENANT FAILURE TO REINSTATE FAILURE TO COMPLY WITH STATUTORY REQUIREMENTS. COVENANTS TO REPAIR. FULL REPAIRING INTERNAL REPAIRING PLUS SERVICE CHARGE / RECHARGE

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DILAPIDATIONS

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  1. DILAPIDATIONS SURVEYOR’S VIEW

  2. WHAT IS DILAPIDATIONS? • BREACH OF REPAIRING COVENANT • BREACH OF DECORATING COVENANT • FAILURE TO REINSTATE • FAILURE TO COMPLY WITH STATUTORY REQUIREMENTS

  3. COVENANTS TO REPAIR • FULL REPAIRING • INTERNAL REPAIRING PLUS SERVICE CHARGE / RECHARGE • PURE INTERNAL REPAIRING

  4. COVENANTS TO DECORATE • USUALLY EVERY 3 OR 5 YEARS • LAST YEAR OR 6 MONTHS • STANDARD SPECIFIED IN THE LEASE

  5. REINSTATEMENT • ALTERATIONS • PARTITIONING • MEZZANINE FLOORS • ALTERATIONS TO SERVICES

  6. STATUTORY REQUIREMENTS • CONTROL OF ASBESTOS IN THE WORKPLACE REGULATIONS • FIRE ALARM • ELECTRICAL CERTIFICATES • GAS • O & M MANUALS

  7. SCHEDULES OF DILAPIDATIONS • NOTICES OF DISREPAIR • INTERIM SCHEDULES • TERMINAL SCHEDULES

  8. SCHEDULES OF CONDITION • Property in poor condition at start • Not reinstate to any better condition at end of lease • Only as good as the schedule • Not the entire answer

  9. TERMINAL SCHEDULES • The lease and other documents • Inspection • Preparation of the Schedule • Lease covenants • Alleged breaches of covenant and remedial actions split between the 4 types of breach • Estimated cost of remedying the breaches • Ancillary Heads of Claim

  10. NEGOTIATION AND SETTLEMENT • OPTIONS • Do the Work • Negotiate and settle the claim • Court or Mediation if unable to settle • DILAPIDATIONS PROTOCOL • SCOTT SCHEDULE

  11. LIMIT OF LIABILITY • SUPERCESSION • Demolition • Alteration • Refurbishment • Improvement

  12. SECTION 18 LANDLORD AND TENANT ACT 1927 • Landlords loss limited to diminution in the value of the freehold reversion. • How is diminution assessed? • In repair / out of repair valuations.

  13. SUMMARY • IF YOU ARE A TENANT • Consider a Schedule of Condition • Don’t overlook your repairing obligations during the lease • Obtain landlord’s approval for alterations • EMPLOY A SURVEYOR! • IF YOU ARE A LANDLORD • Make sure you enforce lease covenants and avoid difficulties with incoming tenants • Adhere to the protocol • EMPLOY A SURVEYOR!

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