Dilapidations Claims

Dilapidations Claims
An often overlooked liability in a tenant’s lease is the cost of dilapidations. Most leases will have a repairing obligations clause which will require the tenant to put the building back into an agreed state during the lease term or when the lease is terminated or expires. 
Claims by landlords against tenants often run into tens of thousands of pounds and tenants are sometimes shocked by the scale of a claim, particularly when they think they have left the building(s) in good condition, or where the building was in poor condition at the start of the lease. 
In the current climate, landlords are looking to recover as much as they can from tenants and a robust, carefully agreed defence is required if tenants are going to avoid excessive claims.  Budgets should be prepared well in advance of lease expiry. 
Trilogie CRE has an outstanding record of reducing tenants’ dilapidations liabilities, in some cases achieving savings of 50% or more in the amount claimed. 
Under FRS 12, accruals have to be made in the Accounts in respect of  onerous provisions associated with non-operational or surplus properties through an assessment of liabilities.  This is a task that Trilogie undertakes. 
If your lease is within 12 months of its expiry or termination, or you are otherwise concerned about your potential liabilities, talk to Trilogie – we will help you put together the best possible defence.
Contact Jeremy Firth  T.  01628 811277E.