Dilapidations

We specialise in landlord dilapidation roles. No lease or property is the same, we tailor our service to each individual role setting us apart from other consultancies.

Dilapidations

Our Dilapidation Process

Our dilapidation framework has been developed through thousands of hours of experience, our processes identify the right mix of skills to ensure success.

We have it covered. Managed by leading RICS dilapidation specialists we continually review our practises with our legal partners.

Our Project Process

Our Project framework has been developed through collaboration with our partners and clients, applying a value centric process.

Unsure how to get the right result? We have it covered. Managed by experienced project managers we work hard to get you the result needed to meet budget time and quality.

Every case turns on its own facts

Every case turns on its own facts

Commercial Dilapidations are all about timing and preparation, whether you are a landlord or a tenant. We have the skill to advise you on all commercial dilapidation matters, small or large, from interim claims to liability assessments.

All commercial leases will require the tenant to keep the property in a good condition and to carry out any repairs needed under the terms of the lease. Commercial Dilapidations refer to the damages or defects to the property as a result of the tenant breaching the terms of the lease. 

In most cases, the landlord has the right to make a dilapidation claim, where they will essentially list the properties deterioration and ask the tenant to make the repairs or pay to have them fixed. This can happen at any time during the lease, or indeed at the end of the lease, so it is important to consider dilapidations before signing a commercial lease.

Before entering into a commercial lease, it is important that both the landlord and the tenant understand the terms of the lease in relation to dilapidations (e.g. interior decoration or structural maintenance) and, if needed, the terms are negotiated to better suit the tenant or landlord. This will mean that there can be no misunderstandings from the outset.

At the end of a commercial lease, the landlord is entitled to claim for the cost of the repairs that the tenant did not carry out and the loss of rent for the period of time needed to get the repairs fixed. This can result in a hefty bill, particularly if the tenant is liable for structural repairs as well as the decoration of the interior. Therefore, it is important that the tenant understands their dilapidations liability and that the landlord is comfortable that the tenant is able to afford any repairs to the property for the duration of the lease.

We are genuine experts and second to none

Vantage Building Consultancy are passionate about office, warehouse and retail dilapidations, providing the best service possible to our clients. We chair RICS events, contribute to dilapidation regulations and publications and help educate our clients and peers on how we can be better dilapidation practitioners.

“JT Ross value candid advice and that is what Vantage have provided us in the UK. Where problems existed, they found solutions and met our timescales plus budgets be it for projects or dilapidation roles. We recommend Vantage.”

Andrew Ross, UK Managing Partner
JT Ross

“Prologis promote collaborative working and exploring the best solutions with our customers. Applying this to dilapidations is not easy. Vantage are aligned with our values; consequently their approach has led to swift and pragmatic solutions for both us and our customers.”

Stuart Davies, Real Estate & Customer Experience Lead, VP
Prologis UK Limited

“Good help is hard to find and it’s a competitive marketplace so you have to react quickly. The team at Vantage showed the importance of listening first and have had a number of successful roles with our clients as a result.”

Craig Hudson, Equity Partner
Curson Sowerby Partners

“Vantage support Aegon property funds nationwide and have been reliable, applying solution focused strategies they have successfully settled a variety of dilapidation roles and at the same time maintained our aim of positive landlord/ tenant relationships.”

Jim Hartley, Head of UK Asset Management
Aegon, Europe

“Working with Vantage has always been a proactive process. I’ve found them to be very responsive and have the knowledge and staff to provide quality and accurate Insurance Reinstatement Valuations for our clients.“

Huw Thomas, Managing Director
Huw Thomas Commercial

"We have worked with Vantage for several years on dilapidation and project roles with success. The market is competitive, Vantage understand this and their innovative approach has seen us jointly achieve good results."

John Boyle, Chief Financial Officer
Ann Summers

"We enjoy working with the team at Vantage, together we have managed a number of complex roles to good effect. The quality of their work was excellent.”

Charles Sherrat-Davies, Director and Co-founder
Asset Management UK

“JT Ross value candid advice and that is what Vantage have provided us in the UK. Where problems existed, they found solutions and met our timescales plus budgets be it for projects or dilapidation roles. We recommend Vantage.”

Andrew Ross, UK Managing Partner
JT Ross

“Prologis promote collaborative working and exploring the best solutions with our customers. Applying this to dilapidations is not easy. Vantage are aligned with our values; consequently their approach has led to swift and pragmatic solutions for both us and our customers.”

Stuart Davies, Real Estate & Customer Experience Lead, VP
Prologis UK Limited

“Good help is hard to find and it’s a competitive marketplace so you have to react quickly. The team at Vantage showed the importance of listening first and have had a number of successful roles with our clients as a result.”

Craig Hudson, Equity Partner
Curson Sowerby Partners

“Vantage support Aegon property funds nationwide and have been reliable, applying solution focused strategies they have successfully settled a variety of dilapidation roles and at the same time maintained our aim of positive landlord/ tenant relationships.”

Jim Hartley, Head of UK Asset Management
Aegon, Europe

“Working with Vantage has always been a proactive process. I’ve found them to be very responsive and have the knowledge and staff to provide quality and accurate Insurance Reinstatement Valuations for our clients.“

Huw Thomas, Managing Director
Huw Thomas Commercial

"We have worked with Vantage for several years on dilapidation and project roles with success. The market is competitive, Vantage understand this and their innovative approach has seen us jointly achieve good results."

John Boyle, Chief Financial Officer
Ann Summers

"We enjoy working with the team at Vantage, together we have managed a number of complex roles to good effect. The quality of their work was excellent.”

Charles Sherrat-Davies, Director and Co-founder
Asset Management UK

FAQs

What are Schedules of Condition (SOC)?
Schedules of Condition (SOC) are factual records of the condition of a property, normally prepared for legal or contractual reasons. Schedules of Condition can be prepared for either residential or commercial buildings. Schedules of Condition create a complete record of the condition of the property on a particular date that can be used as a benchmark against which its condition can be assessed in the future and any changes identified. Schedules of Condition may be prepared under the instruction of a landlord, a tenant, an employer, a contractor, or a neighbour. Appointing an independent expert to prepare a schedule of condition gives unparcelled weight if there are subsequent claims or negotiations. It may be beneficial to seek the agreement of the other party that the schedule is a fair reflection of the condition of the property when it is prepared. It is important to recognise that identifying a change in the condition of a property does not necessarily attribute blame for that change. Schedules of Condition (SOC) are a useful tool for landlords and tenants, but this depends on the information contained. All too often roofs are missed, boilers not tested, photographs poorly ordered, descriptions too generic, causing the Schedule of Condition to be unfit for its purpose. Whether a landlord or a tenant, Vantage Building Consultancy understands the commercial application of a Schedule of Condition and our template can be adapted to suit bespoke needs. Our focus is on meeting our client’s brief so you can be assured that once instructed we have your best interests in mind at all times.
What is the PLA Dilapidation Protocol?
Dilapidations is an essential litigious process and the vast case law in the UK meant that on 1 January 2012 the Dilapidations Protocol was introduced and adopted as a formal pre-action protocol under the Civil Procedure Rules to reduce disputes. The Dilapidations Protocol, a pre-action protocol by the Property Litigation Association, relating to dilapidations claims for damages against tenants at the termination of a tenancy, was first published in 2002, with the aim of preventing landlords exaggerating claims and to lead the way for early settlements without involvement of the courts. The second edition, issued in 2006, aimed to reduce costs by recommending diminution valuations, were considered just before the issue of proceedings. The third edition, issued in May 2008, required the landlord’s surveyor to sign an endorsement confirming, amongst other things, they had followed the protocol. From 2008 to 2011 the PLA and the Royal Institution of Chartered Surveyors (RICS) worked with the Civil Justice Council to refine the wording of the Protocol ready for its adoption. A positive tool? Yes, but also one used to beat others with, the protocol should be used and not abused as many do.
What is a Section 18 (Diminution) Valuation?
A Section 18 (1) Valuation provides a statutory cap for damages, by calculating the difference by which the value of the landlord’s interest has been reduced on account of the breaches of lease covenant. This is otherwise known as the ‘diminution in value’ of the landlord’s interest. Where a building is in disrepair at the end of the term, Section 18 (1) of the Landlord and Tenant Act, 1927, limits the landlord’s claim for damages for breach of a repairing covenant. Other breaches are covered by Common Law Principles usually related to a landlord’s loss as referenced by diminution in value. There are two parts to section 18 (1): The first limits the claim to the amount that the value of the landlord’s reversion is diminished by breaches of the covenant to repair. The landlord cannot recover more than it has cost, in terms of the loss caused to the value of the property. This is the diminution in the property’s reversionary value, caused by the disrepair. The second part states that no damages are recoverable, if it can be shown that on expiration of the lease the premises would be demolished or altered to the extent that would render valueless the repairs in question. In order to calculate the diminution, two valuations are required: firstly to compare the property’s value in poor repair; and secondly to look at the value the property would have achieved in the open market if it had been maintained by the tenant. The second valuation is a hypothetical assessment, as the premises would not currently be in repair. It must consider all potential uses for the premises, as it may be more valuable as a redevelopment site or for an alternative purpose. It must also take into account the extent that an alternative or change of use would affect individual elements of the schedule. For instance repairs, to the external areas may still need to be carried out. The Protocol states that the landlord’s claim must include a summary of the landlord’s intentions. Post-termination events are admissible as a means of assessing the diminution in value of the reversion at the end of the term. If the courts are unable to act on the facts presented, then the requirements of a hypothetical purchaser and transaction will be assessed.
What is Dowding and Reynolds?
This book is a leading authority in its field, providing comprehensive coverage of the legal principles relating to dilapidations, both residential and commercial, together with all the practical aspects pertaining to dilapidations claims. It offers a comprehensive, one-stop reference, assisting the reader with dilapidations issues and in determining of the best course of action. It discusses the legal principles clearly and accompanies this with worked examples showing how they apply in practice. It also includes precedents, forms, statutes and extensive case referencing. The book is now largely recognised by the courts and the professions as the leading work on dilapidations, and it is referred to, and quoted from, in many cases.
What did the case of Sunlife v Tiger teach us?
The case is a useful reminder that landlords and tenants must consider liabilities for dilapidations at the end of the lease in a proportionate and realistic manner, and not stick steadfast to the principle that the cost of carrying out repairs will equate to the level of the claim. It reinforces the commitment of the Judiciary to focus heavily on both the cost of repairs and valuation issues when assessing such claims.
Case study

Dilapidation Negotiation and Project Management

Dilapidation negotiation and project management of landlord works to key regional warehouse asset.

Dilapidations and Project Management
Case Study

Dilapidations and Project Management

Dilapidations & Project Management (Offices)

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