Tag Archives: dilapidations meaning

Preventive Advice Saves Top Insurance Broker Future ££££££ in Potential Dilapidations Claim. Dilapidations North West.

imagehttp://www.killeninsurance.co.uk

“For the first time in my career I have bought my own insurance business. A very stressful and challenging time not just buying the business, there was a Landlord to deal with concerning taking over the existing premises. From the moment I asked Andy to assist me, he provided me with amazing support and advice! The premises are 2 cottages joined as one, so not huge place. Andy’s report consisted of 99 pages and 300 photographs. The Landlord accepted Andy’s report over the one he had obtained from his Surveyor. Andy will have saved me in excess of £30,000 in dilapidation costs when it’s the time to hand the premises back.
If you want a person who cares about their clients and provides a service which goes above and beyond! There is nowhere else to go!!!”

Curtis Dowman Managing Director,

 

 

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Dilapidations Lancashire- Are you an ostrich?

Ignorant of what is in your lease?

A client rang me recently and his 10 year lease ends July 2010.He admitted he had no idea what his lease required of him in terms of repairs decoration and reinstatement!
Seemples- RTF******L  –   read the lease and plan backwards. Do not expect the Landlord to trigger you into action with a Schedule of works. Take control , extract head from sand and address your liabilities while you can. It is so easy to get wrapped up in your business that repairs and decorations to the building can seem  a gross inconvenience. There is a natural reluctance to budgeting for repairs and decorations to a building you do not own. However neglect to attend to those responsibilities and it could be very costly.
If you cannot work out a strategy to minimise your exposure to claim you know where to come.

WOW (Words of Wisdom)

Ignorance is not bliss when it comes to commercial lease liabilities.

Any Tenant of a commercial premises under the covenants of a typical ordinary lease will be expected to keep the premises in good repair and regularly decorated. You must repair and decorate as the lease specifies.There is usually a restriction on alterations without permission. So if you add or takeaway something you will be liable to reinstate and make good.

Do not file the lease away in the cabinet. Get it out and check what it says, preferably in good time before lease end .

You generally have no rights to hang over at lease end to sort matters out unless of course you want to carry on paying rent! The Landlord may not agree to your hanging over anyway.


Dilapidations Lancashire -Another satisfied client

‘Not just a good surveyor, but meticulous in detail, and energetic in prompting dilatory advisors on the ‘other side’ into activity. Also, excellent in the finishing details. Well worthy of praise and recommendation.

Thankyou.’

Norman Green. Kirkby Lonsdale

Dilapidations Lancashire- Landlords and Tenants do not get floored by claims or losses at lease end!

Dilapidations Lancashire,dilapidations expert

A constant source of arguement between Landlord and Tenant (and their Surveyors )at lease end is about carpets and other floor coverings. Do they fall under the Repairing covenant? Are they loose or fixed . Are they glue fixed or on gripper rods? Who put them in?

When is a carpet in repair any way?  If you walk across a carpet lots of  times it will inevitably wear. Put desks and furnitute on top of carpet and it will indent. Sunlight streaming in through windows will cause fading. Spill coffee tea ink toner etc and it will become soiled. Walk in with dirty shoes and you will get grimy footpath trails associated with personnel traffic through the premises.

Ok so the tenant tries cleaning the carpets. They may be cleaner but what about the fade patches and uneven wear associated with wheely chairs and foot tapping staff at desk positions?

At the outset of the lease consider the issue of floor coverings and set down precisely how carpets and floor coverings are to be dealt with at lease end.

Landlords if you want all floor coverings renewed at lease end expressely say so at the outset and record in the lease.  Specify the type and quality.Do not hope the repairing covenant will cover. Why should you provide new coverings and let someone abuse them- the floor coverings are a diminishing assest anyway.  Fact- they will soil and wear and fade. Period.

Tenants if you do not want to renew floor coverings at the lease end or pay for them expressely say so at the outset and record in the lease. Do not take premises with pre-existing shag (ged) carpets and floor finishes and sign up to repair covenant to keep in repair because you can not keep in repair a worn or faded carpet or sheet vinyl floor.. You will inevitably face claim for new floor coverings.

Both parties to the lease should carefully determine at the outset their respective positions and expectations about future liabilities for floor coverings and expressely agree and record how they will be dealt with at lease end – include a specific paragraph in the lease. -something like  ‘the Tenant will at before lease end renew all carpets and vinyl floor coverings or pay to the landlord the costs of the same at lease end.’ or ‘the tenant will have all carpets and other floor coverings cleaned in last 3 months before lease end or pay to the landlord the costs of the same at lease end but will be under no obligation to replace any floor coverings.’

dilapidations lancashire, dilapidations expert

WOW ( words of wisdom)

Landlords and Tenants should determine how floor finishes will be dealt with at lease end and agree liabilities and expressely set out in lease.

Leave nothing to interpretation in years down the line. Save ££££££ in claims or losses.

 

Dilapidations Lancashire- What is dilapidation?

 What’s all this dilapidation about?

Dilapidation is a term meaning in general a falling into decay, but more particularly used in the plural ( dilapidations)in English Law for:

 the disrepair for which a tenant is usually liable when he has agreed to give up the landlord’s premises in good repair.

For the next pub quiz:

Dilapidation is derived from the Latin for scattering the stones (Lapis) of a building.

WOW (words of wisdom)

Avoid being on the receiving end of  dilapidations claim. Understand your lease liabilities, take control ,repair and redecorate and be prepared to remove and make good any alterations you have made.( before lease end)

Footnote:

di·lap·i·date  (d-lp-dt)

tr. & intr.v. di·lap·i·dat·ed, di·lap·i·dat·ing, di·lap·i·dates 1. To bring or fall into a state of partial ruin, decay, or disrepair.

2. Archaic To squander; waste.


 

[Latin dlapidre, dlapidt-, to demolish, destroy : d-, dis-, apart; see dis- + lapidre, to throw stones (from lapis, lapid-, stone).]

Dilapidated-the Temple of Apollo Dydima Turkey
Dilapidated-the Temple of Apollo Didym Turkey,but no Tenant to pick up the tab!

Dilapidations Lancashire.Landlords-protect your position (Dilapidations Claim)

dilapidations,the practical surveyor,building surveying

Tenants often sign up to leases of premises and never have any contact from their landlords except to receive rent and insurance demands or participate in rent reviews.

How many Landlords conduct periodic inspections during the Lease to make sure their Tenants are complying with their obligations to repair and decorate.

Properly drafted leases usually oblige the Tenant to keep the premises in repair and to decorate periodically. So why let the Tenant get in arrears in respect of repairs and decorations. 

Redecoration particulary externally is  preventative maintenance and stops corrosion or wet rot decay developing to the point where replacements are necessary.

Electrical installations should be periodically inspected , tested and certified.( Usually every 5 years in the case of older installations). Gas installations should be annually inspected and tested and certified. How many Landlords ask to see these during the currency of the lease?

No usually what happens is the condition of the premises is not on the Landlord’s agenda until lease end. Then a Surveyor is sent in and lo and behold the premises have years of backlog maintenance and repairs outstanding. Decorations have been neglected for years .The cumulative costs of these arrears can be eye watering to a Tenant. In times of economic downturn the solvency of the Tenant can be questionable.

Landlords check your leases and more than likely there will be provision for the Landlord to gain access for periodic inspections to review the state of repair and decoration of the premises. If the Tenant is in default of obligations serve an interim repairs and decorations notice requiring the Tenant to take corrective action.

Try to ensure the final inspection is about 12 months before lease end so a Notice can be served and the Tenant has adequate time to sort matters out. The Landlord’s requirements for any reinstatement matters can be spelt out to the Tenant who then cannot rely on defence of insufficient notice.

The need for weighty dilapidations claim ( and ensuing dispute) will be much reduced. The risks of the Tenant going belly up and leaving the Landlord to pick up the tab is limited to a maximum of 12 months neglect

So to recap Landlords protect your position by:

  1. Periodic check inspections of the premises during the currency of the lease
  2. Use Repair and Decorations Notices to make sure the Tenant does not store up arrears
  3. Arrange for last periodic inspection to coincide with last 12 months of the lease term
  4. Arrange for terminal schedule of dilapidations to be served on the Tenant in last 3 months of the lease term.

This should protect your position.

A bespoke drafted lease at the outset is helpful and I shall discuss this in some future post.

 

WOW ( words of wisdom):

Never let out so much of the rope you are holding as you are prepared to lose.

avoid repair and decorations arrears
avoid repair and decorations arrears

Dilapidations Lancashire .Practise safe sex? Well practise safe leasing! (Avoiding dilapidations claim.)

Dilapidations,dilapidations claim,dilapidations schedule

Sexual health self-assessment

Ok ladies and gentlemen take this short test to find out whether your sex life is putting your health at risk. How much do you really know about safe sex practices?

What ?I thought this was about surveying !!!

I apologise for the hook but I have your attention and the analogy is true. 

Lease and wealth self-assessment for the tenant.

Take this short test to find out whether your lease is putting your wealth at risk. How much do you really know about safe leasing  practices?

1.OK you have just lined up a hot sexy date. ( Found some attractive premises to rent)

1. Have you any idea what the risks are and just what nasty STDs you can catch? (Have you any idea what your lease requires you to do in respect of repairs, decorations and reinstatement. )

2. Did anyone explain to you just exactly what you might be exposing yourself to?

3. Ok you are just about to jump into bed ( sign a lease)with a complete stranger the mistress or toyboy( The Landlord).You think this is going to be free of liabilities once the coupling is done( lease term). Are you sure you are not going to catch something nasty and unexpected as a result? A LTD! (Lease Transmitted Disaster)

4.The mistress or toyboy (Landlord) can be very seductive and entice you into that bed with all sorts of charming and alluring behaviour and promises ( rent free period )

5. Bang the deed is done. The lease is signed.( less than 30 seconds)You have had unprotected exposure. ( You have signed to the lease and you are contractually bound by seemingly innocuous clauses in a bewildering legal document). Have you done this?

6.The LTD might not show for years but when it does it was all because you engaged in  fumbled hurried unprotected leasing. Don’t you just feel stupid? (Your wealth is going to be seriously affected.)

OK.  STOP NOW!! Do not become another victim of ignorance. Practise safe leasing and take precautions.

As an expert dilapidations surveyor I have worked for some of  the largest and most successful businesses and commercial property managers in the NorthWest. ( Iotech Group Ltd,  Stax plc,  James Hall & Co Spar Stores).

I have acted for the same and many similar businesses where they are Tenants of commercial properties. Leading NorthWest Solicitor practices regularly refer their clients to me.

I have provided expert defence to end of long lease claims against Tenants of up to £1.3 million ( subsequently agreed in the case 0f the £1.3m claim at £650000.)

I have undertaken  dilapidations surveys on behalf of my clients for the past two decades. I understand exactly where Tenants can be most vulnerable to claims at the end of a lease.

I am by experience both a poacher ( for Tenant) and a game keeper.( for Landlord)

If you have neglected to deal with you repair and decorations liabilities, unfortunately the only defence you have available to you at the end of a lease is to engage an  Dilapidations Expert like me and hope that the landlord is not going to be too agressive . ( Hopefully the Landlord has also engaged an  inexperienced dilapidations  surveyor to act for it if you are lucky)

This is damage limitation only: far better not to have put yourself in that situation in the first place.

OK .What is involved in practising safe leasing?

  1. Employ the best specialist Commercial Property Lawyer you can afford( I mean seriously experienced and not the sadly all to often generalist solicitor regurgitating or cut and pasting old leases-come on guys who really gives credibility to  ‘ye shall whitewash distemper  marble and paint’)
  2. Employ the best specialist Dilapidations Building Surveyor you can afford to carry out a pre-lease inspection of the premises and prepare a comprehensive Ingoing Tenant’s Schedule of Condition.This will be in written photographic ( including elevated birds eye ) and increasingly HD Video format and preferably a combination of all three. ( It is if I carry it out.)
  3. Ask your Dilapidations Surveyor to give you an executive summary and advice as to just what are the major issues as to current repair and decorative liabilities and liabilities to be addressed  at lease end.
  4. Negotiate with the Landlord for the Landlord to correct existing defects or give rent free period monetary equivalent for you to keep ( and to put) and the premises in good tenantable repair. But do not then forget to sort matters out.
  5. Or if the Landlord will nor put hand in pocket to repair ( despite possible healthy cash injection from previous sucker tenant) seek to agree to limit your liabilities to repair and surrender the premises at end of lease in no better or worse condition than an agreed attached Ingoing Tenant’s Schedule of Condition. (And it better be very comprehensive! The landlord can seek to attack you with the ferocity of a rabid pitbull.)
  6. Maintain  repair and decorate during the lease term and certainly well before lease end. It far cheaper for you to commission these works. If you have altered the premises or added to the same without landlord’s consent reinstate the premises. Why give yourself a problem and the Landlord a chance to go for that handy cash injection?
  7. Engage a Dilapidations Surveyor to examine the lease and check over the premises and see where you might be exposed to claims for repairs and decorations and plan backwards from date of the end of the lease and implement a programme of remedial works.

I am an Expert Dilapidations Surveyor with over 25 years experience.  If you need help contact me.

I have recently provided safe leasing precautions by preparing a comprehensive schedule of condition of the whole of a multi-hectare site with significant and complex industrial buildings. ( Multiple written schedules, 8 CDRoms of Photos and 2 hours HD  DVD Video).

No LTDs for that Tenant!!! ( provided of course they reasonably maintain and decorate to prevent deterioration from recorded condition)

WOW (words of wisdom)

Simple isn’t it?

The prescription:  Take sensible precautions and enjoy safe leasing to your heart’s content.