WGM’S TOP 10 DILAPIDATION TIPS – OCCUPIERS

Brick industrial building
  • Take advice before you sign the lease in the form of a Pre-Lease Survey. A Pre-Lease Survey will report on the condition of the property and advise on potential liabilities and how to reduce them.
  • Append a Schedule of Condition (SoC) to the lease and look to dilute your repairing and decorative liabilities to ‘no better’ condition than evidenced within the SoC.
  • Undertake regular maintenance so the property does not fall into disrepair. Most leases include a Jervis v Harris Clause which permits the landlord to enter and undertake the works to remedy the breaches if the tenant fails to do so.
  • If you plan on undertaking alterations to the building, ensure you seek the landlord’s permission beforehand and act in accordance with the terms of your lease.
  • Procure a dilapidations liability assessment to understand your potential dilapidations liability and provision accordingly throughout the lease term.
  • Update your dilapidations liability assessment and obtain strategic exit advice 12-18 months prior to lease end or break date.
  • If you have the time and your Chartered Building Surveyor advises to do so, diligently undertake the recommended exit work prior to lease end. Retain copies of the invoices and photos of the work.
  • Appoint a Chartered Building Surveyor to negotiate the residual dilapidations claim on your behalf.
  • Consider specialist diminution advice.
  • Keep up to date with your statutory testing and share the relevant certification with your landlord at lease end.
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