Wherever a leasehold interest exists so might a claim for dilapidations. Put simply a dilapidations claim is a liability, which arises from failing to comply with the lease obligations to put or keep premises in a certain state of repair and redecoration and to return them to the landlord in this condition at the end of the lease, usually with any tenant's alterations or additions removed.

The intention of the law and practice relating to dilapidations is to retain the value of the landlord's investment by maintaining the income stream and keeping void periods to a minimum. It also exists to protect tenants from false claims.

The extent of the dilapidations liability is dependent upon the nature of the repair, re-decoration, reinstatement, and yielding up clauses in the lease, on the effects of relevant statutes (primarily the Law of Property Act 1925 Sections 141 to 147, and the Landlord and Tenant Act 1927 Sections 18 & 19), together with the landlord's intentions for the building and state of the property market at the time the lease comes to an end.

The landlord's dilapidations claim is normally prepared by his surveyor who produces a priced schedule of defects and a statement of the landlord's loss, which is served on the tenant by the landlord's solicitor.

The tenant may then respond to the claim in various ways e.g. by challenging its validity, carrying out the repairs, or making a payment to the landlord in compensation of the losses he has incurred as a result of the failure to repair. In the case of the latter, this payment may include, rent, rates, and service charges, incurred by the landlord whilst the building is being put back into repair.

It will be appreciated from the above brief summary that "dilapidations" is a complex subject, which requires knowledge of repair and maintenance, building costs, valuations, and dilapidations law. It is also the case that no two dilapidations matters are ever exactly the same, and each case must be considered on its own merits and with a strong focus on the landlord's true loss.

Orpwood Associates are used to acting on dilapidations matters for both landlords and tenants on commercial, industrial, and residential premises, and in complying with the Property Litigation Association's "Dilapidations Protocol".

When acting for landlords we can:

• Prepare and serve Notices of Repair.
• Provide a preliminary assessment of the existence and likely size of a claim and advise on the appropriate strategy for its execution.
• Prepare a priced schedule of defects and statement of claim.
• Negotiate the settlement of the claim with the tenant's surveyor.

When acting for tenants we can:

• Carry out a preliminary assessment of the potential dilapidations liability of a leasehold interest prior to its acquisition.
• Provide an opinion on whether proposed repairing and reinstatement obligations are reasonable or unduly onerous.
• Limit the tenants repairing obligations by preparing a written and photographic schedule of condition and agreeing this with the landlord's surveyor.
• Challenging and negotiating the settlement of the landlord's dilapidations claim, and/or alternatively arranging for the carrying out of relevant repairs.