Commercial and Landlord and Tenant - Dilapidations

Commercial landlords will seek to ensure that their property is maintained in a good state of repair and this is best achieved by a well drafted lease containing relevant and effective repairing covenants.

If the tenant fails to maintain the property adequately, then these covenants can be enforced by way of a dilapidations claim at any stage during the last three years of the lease term.

Before involving the courts, the landlord should follow the pre-action protocol which encourages the exchange of early information regarding any claim with the hope of avoiding litigation and if that is not possible to support efficient management of any Court proceedings.

Ultimately, the landlord will seek to quantify a loss that has occurred by the formal diminution of value in the landlord’s reversionary interest and/or an account of actual expenditure, or a combination of both.

There are defences open to a tenant when facing a claim for dilapidations which includes looking at the future intentions of the landlord in respect of the property and consideration of what a 'reasonable landlord' would do.

Sarginsons has significant experience in drafting and negotiating commercial leases to protect a landlord’s interests. For any information regarding this, please contact Ian Cox on: 024 7655 3181.

Additionally, if any tenant requires advice regarding a dilapidation’s claim, please contact Katie Kearns on: 024 7655 3181.