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Strategic Dilapidations Report

Example Synopsis

We understand that you have a public house on a lease that ends very shortly and you wish to understand your Dilapidations claim and minimise your Dilapidations costs.  We have viewed the property and looked at a selection of documents including:

1.      The lease

2.      Interim Dilapidations Schedule priced and not priced

There are various ways to solve a Dilapidations claim: 

1.0)   Carry out all the work that you consider you are liable for under         the lease

2.0)   One off monetary payment

One off monetary payment in Full and Final Settlement which would end future Surveyor and Solicitor costs and a potential insurance and rental payment charges claims from the landlord.

3.0)   Item by item settlement

An item by item settlement of the Dilapidations.  The benefit of this course of action is that you get a true value.  The disadvantage of a Dilapidations settlement is that fees run up.  With most leases you are paying for the fees of your professionals (Chartered Surveyor and possibly Solicitor) as well as fees for the landlord’s professionals.

First things first

You have very little time left before the end of the lease.  We would recommend that you:

1.      Immediately look at removing any of your own stored items

2.      Instigate redecoration - although in theory you could argue that some of the redecoration is not possible due to the problems caused by landlord’s liabilities, we feel it would put you in the best position to carry out redecorations before the end of the lease.

3.      Communicate with the brewery/property owner to discuss the possibility of an extension of the lease.

We go into this in much more detail within the rest of the report. 

Specific comment on the Dilapidations Schedule served

The Dilapidations Schedule served is an Interim Schedule and as such can be added to and amended.  This is normally done when the occupiers have left the property and the only solution is a monetary (money payment) solution. 

From our discussions with you it would appear that the brewers/property owners have carried out work and have accepted in the past that the condition of the property has affected things that strictly speaking would be your liability however how this is seen from a Dilapidations point of view may be completely different.