As
you may know, dilapidations is a term used to refer to damages or defects to a
property which a tenant is generally legally obliged to put right at the end of
their lease. Depending on the terms of the lease, where dilapidations do occur,
it is likely that the tenant has breached various agreements, the most obvious
being the repairing covenant.
If
applicable the landlord may be able to take action to remedy breaches and
dilapidations, dependent on the terms of the lease and whether the lease has
come to an end. Options made to the tenant can include rectifying the
damages themselves, or paying a fee to the landlord, who will make the repairs
and re-charge the tenant the full amount. However, once the term of the lease has
come to an end, the options are restricted to paying damage fees only.
Furthermore,
in some cases, where the tenant is unable to rectify the damages or cover the
fees involved, the landlord may be able to pursue guarantors instead, as they
may also be liable for the breaches.
Dilapidations
could also further impact the ability for a tenant to assign or under let a
lease. If consent is required by the landlord to do so, then they may
reasonably withhold consent where there are breaches to the contract,
until such have been rectified.
Despite
the ability to seek remedy for damages during the term of a lease, it is
typically the case that the issues do not come to light until the end of a
lease, when the tenant is required to leave the property in the same state as it
was before they entered. Unfortunately, however, this is not often
the case and landlords must undertake necessary works to carry out remedial
work. In some instances, tenants may further dispute the damages claimed or
dispute any breaches of their contract, which can leave landlords facing the
sole burden of the costs. Due to these large costs involved, it is important
for all parties involved to have any potential dilapidations at the forefront
of their mind before entering the lease.
At
Ramsdens, our specialist Litigation team regularly
advise landlords and tenants on all aspects of commercial property
leases, including their rights and obligations in respect of covenants and
dilapidations. Whatever the nature of your dispute call Ramsdens
Solicitors for expert advice. Get in touch with us by calling 01484 821 500, or by email at [email protected] to
speak to one of our commercial dispute solicitors.
