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A dilapidations surveyor prepares the schedule of dilapidations. He or she records in detail all the repairs for which the tenant is responsible under the terms of the lease.
These can cover a wide range of items, such as the redecoration or reinstatement of the premises. Sometimes, the tenant may have caused damage to the property that requires repair. In other cases, the property may have suffered from a lack of adequate maintenance. Whatever the reasons behind the situation, if the tenant has failed to effect the necessary repairs, the landlord can and should serve a dilapidations claim on the tenant.
When it comes to dilapidations, tenants and landlords have a common goal—to achieve a fair outcome. If your tenant is responsible for alterations and repairs to your property, then you should prepare a Schedule of Dilapidations.
A Schedule of Dilapidations sets forth in clear terms what the tenant must do to “put things right.” Although in many cases, setting forth grievances requires the landlord to adopt a somewhat adversarial position, an effective Schedule of Dilapidations signed by surveyors is not a document that either party can take lightly. Should a tenant choose to take the contrary position and challenge the Schedule of Dilapidations, they may be at a disadvantage without a surveyor.
Before you enter into a new lease, you can get advice from our panel of dilapidations surveyors here in Notting Hill on the implications of the dilapidations clause in the lease.
When you sign a lease, if you later make alterations to the property that you rent, it’s crucial to get a legal document (a Licence to Alter) signed by your landlord that specifies what you can and can not do to the property. Surveyors can help you with that and can also provide you with assistance in resolving disputes over the terms of the lease itself if necessary.
If you are in dispute and it can only be resolved with a judge’s ruling, our panel of surveyors can appear as expert witnesses to help ensure proper conduct is followed.
Typically, a landlord has a chartered surveyor on hand toward the end of a lease. The surveyor’s job is to look closely at the property and to draw up a Schedule of Dilapidations if necessary.
Although the landlord’s surveyor can serve the schedule before the end of the lease, it is good practice to let the tenant know that they have the option to complete the necessary repairs and reinstatements before the end of the lease. Surveyors therefore assist both tenants and landlords with the following:
The Schedule of Dilapidation may include expenses and lost rental income caused by the time lag between when a repair is needed and when it is completed. If the tenant still refuses to comply with the Schedule of Dilapidation, the landlord has the option of filing a Terminal Dilapidations claim.
A dilapidation claim spells out the detail of the landlord’s damages: lost rental income, diminished resale value of the property, or both. Incorporated into the calculation of the value of the loss may be an examination of the period of time involved and the diminished value at the end of the period compared to what the value would have been at the end of the term had the tenant complied.
A Schedule of Dilapidations must conform to certain requirements if a landlord wishes to make a successful claim against a tenant:
If you’re a tenant and facing a Schedule of Dilapidations, your initial response should be one of calm. The first thing to do is to consult your dilapidations surveyor to establish which of the repairs mentioned in the schedule you need to undertake. Your surveyor should also help you assess what the repairs—if any—actually mean in terms of your lease obligations. If you are liable for any of those repairs, make the ones you can easily complete and then re-review the schedule with your landlord.
Should the landlord maintain that you are in violation of the lease and that you have not completed the necessary repair work to return the premises to good order, he may sue you for damages. Your surveyor should be able to assist you in constructing a counterargument and should work with you to limit the landlord’s claim according to the Dilapidations Protocol.
Knowing your responsibilities as a leaseholder is key when it comes to dealing with a Schedule of Dilapidations. Understand what is being asked of you—what level of upkeep or repairs the language currently obligates you to undertake.
Before you sign the lease or agree to its renewal, have a look through the terms to see if anything seems a little unclear or if it looks like you are liable for the full repairs of the premises at lease’s end. If something seems suspect, get in touch with a qualified Chartered Surveyor to discuss it with you.
For a property designated as a Listed Building, greater caution is advised. They frequently suffer from issues such as inoperable windows and incessant roof leaks. They also seem to be particularly prone to dampness and condensation. These problems and others that are bound to arise, are often the inherent fault of the property itself, not you – in short, don’t neglect to ask for a Schedule of Condition.
Keep all records of your property in a secure location and maintain regular upkeep so that your property remains in good condition. You can check on the condition of the property and the diligence of your tenants by conducting regular inspections.
The Full Building Survey report includes the following:
When it comes to the detail that the surveyor will go into concerning defects, repairs, and maintenance, the Homebuyer Survey is fairly standard. Full Building Surveys, however, are more refined and go into more detail about possible and likely defects. Repairs and maintenance are covered in more detail. The Survey cost depends on the age, size, and value of the property.
The analysis they undertake is a visual inspection. This means that, for the most part, the building components that can be seen will be looked at and assessed in accordance with the surveyor’s remit. The Home Survey Report will show you the visible defects and then go on to discuss the kinds of partially hidden or totally hidden defects that the surveyor thinks you should be aware of. It will also try to clarify what kinds of repair work need to be done and the nature of the repairs. The survey is effectively a way to consider “defects” and their potential impact on the building.
A Building Survey Report contains the most important information for understanding the condition of a property. The surveyors that undertake the work follow a set procedure. The first part of the report contains a general overview of the property and its surroundings. The second part details the major and minor problems with the property’s components, inside and out. These problems range from serious structural defects to issues with doors or windows that don’t close properly, and everything in between. The report is written in clear English, complemented by diagrams and photographs. If any of the problems found are what a surveyor might consider important, that’s what the report indicates—using clear and unambiguous language.
Surveyors usually use a tick box to indicate methods of repair when drafting a building survey report. They are also required to comment on the timescale of any repairs. A condition rating is typically included: what needs to be addressed immediately, what is in the process of deteriorating but is in reasonable condition, and what has not deteriorated at all.
A building surveyor is responsible for a variety of checks and tests during a building inspection. These could be checks or tests for damp and woodworm, or they could be visual inspections of the building’s structure. In building surveying, there are visual inspections of roofs – checking for tiles and slates (if applicable) and also checking for leadwork (if applicable) and looking at the junctions between roof and wall. If the wall structure has brick in it, the surveyor will visually check for any “spalling” (brick breaking apart visibly) and any bulging (brick failing to hold its place visibly), for example.
If defects need fixing immediately, then the options recommended for this survey specify what to repair and give some idea of how long the problem has existed. For the most part, this survey describes recommended repair approaches that are standard in the industry and that do not require excessive expenditure. Future maintenance is also discussed, including what to expect when the problem being surveyed is not repaired and what to expect with repairs that are made but with questionable methodology.
Your surveyor will explain some of the legal aspects of purchasing the building, covering—in as much or as little detail as you desire, and their implications, but this is subject to your solicitor verifying.
You might consider having a separate market valuation done to determine whether the property’s asking price is warranted. You’ll also need a reinstatement cost valuation for insurance reasons.
Written into the lease agreement should be the expectation of periodic inspections. These inspections can be done by the owner or management staff with the permission of the tenant. If any problems crop up during the inspections, the tenant should be informed directly and without delay. If something needs fixing, the request for that fix should be made in writing as soon as possible.
If the problem leads to permanent harm to the property, then the landlord’s ability to get a new lease or to obtain financing when he needs it could be at stake. In that case, it makes sense to tell one’s surveyor to get busy and prepare an Interim Schedule of Dilapidation that will give the landlord some leverage to secure prompt repairs.
In addition to the Interim Schedule of Dilapidation, which can be served at any time, there is the Terminal Schedule of Dilapidation. The timeframe for issuing this schedule is within the last 18 months of the lease. The schedule is designed to protect and preserve the value of the Landlord’s property but precludes depreciation in the value due to the relevant breaches.
Repair obligations may fall on either tenant or landlord and may include such things as fixing broken items and replacing worn-out fixtures and fittings. Knowing who is responsible at the outset of the lease can avoid disputes later on. A tenant should also understand the condition of the property at the time of move-in. If the tenant does not know, then the tenant risks being accused of causing damage when he or she has not done so.
Should the lessee fail to carry out repairs or corrective action, they will be in breach of the rental contract under section 146 of the Law of Property Act 1925.
A Schedule of Dilapidations is a legal document that serves to enforce a lease. It helps ensure that a tenant follows the rules of the lease and returns the property to the landlord in good condition. Our panel of surveyors are happy to protect the interests of both landlords and tenants by drawing up a Schedule of Condition or a Schedule of Dilapidations, whichever best suits the needs of the leaseholders involved. To discuss your specific situation and determine which document might work best for you, call our professional team today.
Looking for a Chartered Surveyor? If you are buying a property, contact us for a building survey. Our panel of CIOB, RPSA and RICS surveyors will help you with the Level 2 or Level 3 property survey you need in Notting Hill. We can also assist you in Red Book Valuations, Party Wall Awards and other services. Reach out to us today for building surveyors, valuers and party wall surveyors in London!
