Top Ten UK Dilapidations Guide 2024

Dilapidation has unique characteristics in the UK and is also subject to enforceable in court. Disputes between landlords and tenants occur due to misunderstandings about property maintenance clauses.

The following ten tips will provide a guideline for simplifying the dilapidation process and terms, helping to reduce disputes between landlords and tenants.

Interim or terminal schedule of dilapidation?

A dilapidation schedule is a list of work that needs to be completed to restore the physical state of the leased property if the tenant did not maintain it properly or failed to observe his obligation.

A dilapidation schedule can be of two types - interim and terminal.

An Interim Schedule is served during the lease duration to inform the tenant of his obligations to maintain the property he had allegedly violated. It is served during the contractual time with the tenant.

The Terminal Schedule is served at the end of the lease term period (possibly 18-36 months). It lists all the necessary repair work the landlord must do that should have been done by the tenant. It is also known as the Final Schedule, implying that the tenant has no right to take any remedial work once the lease ends.

What is the procedure for serving the dilapidation schedule?

A solicitor appointed by the landlord serves the tenant with the schedule of dilapidation, which mentions the property's due repair works and their costs. A professional surveyor carefully surveys the property to prepare the schedule of dilapidation, which the solicitor then serves.

Upon receiving the schedule of dilapidation, the tenant may appoint a professional surveyor to evaluate the validity of the claim made in the schedule. Further negotiations or court proceedings may follow regarding the dispute for disrepair.

How do we avoid failure to observe dilapidation obligation?

If you are a tenant entering into a leased contract, it must mention all the obligations you must observe. So, you need to understand the ‘yielding up’ clause, which clearly defines the process of leaving the leased property or the state of the premise at the time of leaving it.

The tenant's yielding up clause obligation regarding repair, decoration, restoration, and other compliances. A thorough understanding of these clauses will help the tenant observe all the obligations and avoid disputes with the landlord.

Why making a dilapidation provision is essential?

A dilapidation provision refers to creating a fund and saving money to repair the property for potential damage. Tenants should make this provision and pay the landlord for any dilapidation claim at the end of the lease term. A professional surveyor may assist in creating the right amount of provision after conducting the building's survey.

Provision for dilapidation also helps a tenant to reduce the burden of repair at the end of the lease term. 

Is there any authority regulating the dilapidation procedure?

The Royal Institution of Chartered Surveyors (RICS) provides guidelines and frameworks for professional surveyors to follow when determining dilapidation claims. The Guidance Note provided by RICS is considered the standard regarding the dilapidation survey process and others.

However, the Landlord and Tenant Act 1927 provides guidelines regarding dilapidation claims. The Dilapidations Protocol, adopted as a law in England and Wales on 1st January 2012, also provides guidelines regarding dilapidations in England and Wales.

How can Section 18 (1) of the Landlord and Tenant Act 1927 save tenants?

Section 18 (1) of the Landlord and Tenant Act 1927 is effective in making a dilapidation claim. It can save tenants in two possible scenarios. First, a landlord can not make a dilapidation claim that exceeds the total valuation of damages he has caused. Secondly, a landlord can not claim for the damages done by a tenant to the leased property if it is proved in court that the property will be demolished after the leased period ends. Hence, a landlord can not falsely claim damage to the tenants.

How does the Dilapidation Protocol help in resolving disputes between tenants and landlords?

The dilapidation Protocol details the process of serving a Schedule of dilapidations to the tenants. It clearly states the process a landlord should follow while sending a schedule to the tenant. It should include all the breaches of the agreement or the repair work that the landlord considers a violation. The reasonable time for serving a terminal schedule has been decided to be 56 days after the end of the lease term.

The Dilapidation Protocol also clearly describes the tenant's response after receiving the schedule. It suggests the tenant responds to the schedule within a reasonable period, preferably 56 days. It also explains all the necessary steps that can help mitigate disputes between landlords and tenants.

Why surveying is vital before renting a property?

Disagreement about dilapidation claims is the main reason for disputes between tenants and landlords. A professional dilapidation surveyor can help identify damages already done to the property before the start of the lease period.

The surveyor's input shall ensure that the property's condition is clearly stated in the lease agreement or mentions any existing damages for which the tenant is not liable. This will help maintain clarity for both parties about the state of the building and avoid any future disputes.

Which elements in the market influence dilapidation claims?

Different market elements often influence dilapidation claims, such as recession, demand, or any natural emergency like COVID-19. When properties are available in the market in more numbers than the demand, landlords may not negotiate dilapidation claims sternly. However, dilapidation claim negotiation can be complex for tenants if there is a strong demand for properties and not enough is available.

However, tenants should employ a professional surveyor to clarify the liability of dilapidation before the landlord.

Does the tenant need to remove alterations made to the property?

Yes, the property's condition should be as it was when rented from the landlord. If the property is altered for commercial purposes, then the tenant needs to ensure that the site is stripped of all the materials used for the alterations.

The tenant also needs to ensure the site is clean and not disrepair. Leaving the site after repairing all the damages will significantly reduce the chance of disputes between the tenants and the landlord.

Conclusion

The process of dilapidation in the UK is very complex and costly. To avoid future disputes, both parties need to reach a mutual agreement before the start of the lease period. Following the guidelines of a professional dilapidation surveyor is necessary to reduce dilapidation-related work.

Commercial Dilapidation London provides dilapidation services suitable to your leased property.