In a market were asset values are not rising significantly it is all the more important to pay attention to costs associated with occupancy such as maintenance during the term and the state of repair at the end of the term. Whilst the obligations are often set out in a lease, the interpretation of those obligations is often subject to complex legal case law.
Hampton Jones provides Interim or Terminal schedules of Dilapidations, depending on the situation. An Interim Schedule of Dilapidations is often prepared and presented to a Tenant when a Landlord is concerned over the lack of maintenance being carried out and wishes to ensure the property is well maintained during the lease term, mitigating potential problems with excessive deferred maintenance being present at lease termination. A Terminal Schedule of Dilapidations is normally prepared within the last six months of a lease term and will also include an assessment of the reinstatement obligations in regard to alterations carried out during the term.
In practice we also find Dilapidation Assessments are also requested by Tenants and some Landlords where a party is seeking to understand financial implications associated with make good responsibilities. These reports are either used to set aside an accounting provision for the expenditure or to assist with negotiations of a new or extended lease term.
All our schedules are prepared further to a comprehensive review of the legal agreements and reference to statutory and case law, and includes;
full interpretation of the lease obligations so that each party understands their legal responsibilities
all items of disrepair, reinstatement and re-painting, referenced to the appropriate lease covenants
quantities and costs for the remedial works (where appropriate)
statement of claim including all heads of claim such as loss of rent, professional fees etc (where appropriate)
Hampton Jones will also assist with the negotiation of settlements. Our methodology and strategy ensures an amicable settlement whilst maintaining positive Lessor/Lessee relations.