Dilapidation / Condition Report
When tenants come to the end of a lease on a commercial property, there may be a hefty leaving fee coming their way in the form of a dilapidations claim.
Dilapidations issues commonly arise when a tenant fails to comply with the contractual obligations they agreed to when signing their lease. The complexity of buildings and their installed services, coupled with the difficulty in interpreting leases, has resulted in countless disputes and court cases, which can make the business of determining exactly what liability exists a demanding one.
Two dilapidation reports are normally commissioned; one on behalf of the Landlord and one on behalf of the Tennant. Both reports are carried out by independent building consultants like us at Steve Elphick Associates Ltd. The reports supply information regarding the condition of a property and/or its building services at a given time. The records of any existing damage. The current state of any particular aspect of the property that is in dispute with associated costs to rectify the problems.
When tenants come to the end of a lease on a commercial property, there may be a hefty leaving fee coming their way in the form of a dilapidations claim.
Dilapidations issues commonly arise when a tenant fails to comply with the contractual obligations they agreed to when signing their lease. The complexity of buildings and their installed services, coupled with the difficulty in interpreting leases, has resulted in countless disputes and court cases, which can make the business of determining exactly what liability exists a demanding one.
Two dilapidation reports are normally commissioned; one on behalf of the Landlord and one on behalf of the Tennant. Both reports are carried out by independent building consultants like us at Steve Elphick Associates Ltd. The reports supply information regarding the condition of a property and/or its building services at a given time. The records of any existing damage. The current state of any particular aspect of the property that is in dispute with associated costs to rectify the problems.
- We recommend that a precondition dilapidation report is carried out 12 months before the end of the current lease period. This enables any work needing to be carried out, can be done economically before the end of the lease.
Acquisition Surveys
Have you found a commercial property to lease or invest in?
This can be a big undertaking for a potential buyer or investor, which will almost certainly have some hidden costs and long-term liabilities, which you will be responsible for. This is especially true when talking about building services that degrade over time.
Before any paperwork is signed, you need to understand what you're investing in. One essential step to alleviate stress and understand your future obligations and financial risk is to get a pre-acquisition survey on the property's structure and the installed building services.
Acquisition surveys are one of the best ways to get critical information on the state of a property and its installed services, with all present and potential problems being highlighted. The survey can provide estimates on life cycle costs and running repair obligations. It can also provide advice on potential refurbishments or improvements that you may want to make once you take on the building. They have the potential to pay for themselves many times over or save you from making a big mistake.
This information can be essential in helping you negotiate a better deal before you sign. It can also help you put a long-term plan in place to mitigate your liability at the end of a lease.
Surveys you should have done:
Structural Building Survey
This looks at the structure of the building such as the walls, floors, and roof.
Building Services Survey
This looks at the installed services used to condition the space, such as lighting, heating, ventilation, etc. Building services are expensive and normally installed to a budget and operational needs of the time. They are also expensive to maintain and may have had minimal maintenance carried out. This can result in many of these services being in poor condition or not appropriate for the needs of your business.
Steve Elphick Associates Ltd can provide you with professional and independent advice on the commercial property you are interested in. Don’t cut corners when it comes to evaluating a property. Having as much knowledge as possible about a building ensures you have a good understanding of what the future holds for it and confidence in your investment.
Have you found a commercial property to lease or invest in?
This can be a big undertaking for a potential buyer or investor, which will almost certainly have some hidden costs and long-term liabilities, which you will be responsible for. This is especially true when talking about building services that degrade over time.
Before any paperwork is signed, you need to understand what you're investing in. One essential step to alleviate stress and understand your future obligations and financial risk is to get a pre-acquisition survey on the property's structure and the installed building services.
Acquisition surveys are one of the best ways to get critical information on the state of a property and its installed services, with all present and potential problems being highlighted. The survey can provide estimates on life cycle costs and running repair obligations. It can also provide advice on potential refurbishments or improvements that you may want to make once you take on the building. They have the potential to pay for themselves many times over or save you from making a big mistake.
This information can be essential in helping you negotiate a better deal before you sign. It can also help you put a long-term plan in place to mitigate your liability at the end of a lease.
Surveys you should have done:
Structural Building Survey
This looks at the structure of the building such as the walls, floors, and roof.
Building Services Survey
This looks at the installed services used to condition the space, such as lighting, heating, ventilation, etc. Building services are expensive and normally installed to a budget and operational needs of the time. They are also expensive to maintain and may have had minimal maintenance carried out. This can result in many of these services being in poor condition or not appropriate for the needs of your business.
Steve Elphick Associates Ltd can provide you with professional and independent advice on the commercial property you are interested in. Don’t cut corners when it comes to evaluating a property. Having as much knowledge as possible about a building ensures you have a good understanding of what the future holds for it and confidence in your investment.