Questions & Research when responding to a Dilapidations Claim

Questions to ask a landlords surveyors when a Dilapidations Claim is received:

1.      Is it the landlords intention to undertake all of the works noted in the SofD?

2.      How has the Schedule of Dilapidations been costed? (Tendered, estimated?)

3.      Will the landlord be tendering the works & when?

4.      Are the premises being marketed and can they provide a copy of the particulars?

5.      Has S.18/ Diminution Valuation been considered?

6.      Has a planning application been submitted?

7.      Has the landlord found a new tenant and if so what are the new agreed terms?

8.      Does the landlord intend to sell the premises?

9.      Is the Landlord registered for VAT?

10.   Do they evidence of the alleged alterations (ie. Licence to Alter)

11. Request copies of any tenders, tender analysis.

12. Request photographic evidence of the alleged breaches of covenant.

Background Research in preparing a response to a Dilapidations Claim:

1.       Who is the Landlord?

2.       Is the building being sold?

3.       Are the premises being marketed?

4.       Get a copy of the marketing particulars. Review and consider if tenant alterations are being used to benefit marketing (eg, air conditioning, partitioning, mezzanine floor etc)

5.       Check local planning portal. Any planning applications?

6.       Use Google Street view History function (Use to prove if something existed prior to lease commencement)

7.       Office – View other floors in the building. Are they vacant? Has the landlord made improvements? (E.g. New lighting, ceilings, HVAC)

8.       Industrial – View other units on the estate. Are they vacant? Has the landlord made improvements? (New roof, cladding, shutter doors, lighting)

9.       Retail – View other units the landlord owns. Do they undertake the works?

10.   Ensure you fully understand the alterations that have been made to the premises and when? Has the correct notice been served in relation to reinstatement of alterations?

11.   Was there a previous lease with Landlord & Tenant?

12.   Does the existing lease refer to the previous lease?

By asking the correct questions and undertaking research prior to responding to a dilapidations claim can assist in understanding the landlords real intentions and in reducing dilapidations costs.

In addition, knowing when to push and respond to a claim and when to hold back and wait for the landlord to prove any alleged loss is key in reducing a dilapidations claim.