Project
Dilapidations Liability Assessment
The landlord and tenant were entering into negotiations for a new lease and the landlord needed to quantify the tenant dilapidations that had accrued at the end of the current lease term, to factor this into the negotiations.
Challenges
- The tenant dilapidations liability needed to accurately reflect the scenario that the lease would renew and items such as reinstatement of tenants alterations would not be relevant.
- The client also wished to know what the tenant liability may be if the lease renewal negotiations failed.
Solution
Careful review of the lease documents and detailed site inspection ensured that the dilapidations liability for each scenario was properly assessed. Over estimation of the dilapidations in the context of the lease renewal may have jeopardised the negotiations
To provide a tailored service the client, we assessed the scenario whereby the tenant did not renew their lease, and in addition advised upon the timescales to complete the dilapidations work prior to placing the property on the market.
