Dilapidations refer to the items of disrepair covered in the repairing covenants of a commercial lease.
Our Commercial Property Solicitors advise both landlords and tenants on all legal matters relating to dilapidations.
When instructing us, you can be confident that you will receive the legal advice you need from one of the most highly-regarded Commercial Law teams in Coventry and Warwickshire.
We are a diverse, multi-lingual law firm that uses best-in-class technology to provide clients with streamlined, modern, and highly effective commercial property law advice and representation. Our years of experience in commercial property law means we have a robust reputation for excellence with the UK’s best Barristers and Queen’s Counsel, Estate Agents, Independent Financial Advisers, Surveyors, and Lenders who can bring additional support to our Commercial Property Department if needed.
Below are some of the most common questions we receive regarding dilapidations.
Where are the covenants relating to dilapidations contained?
The covenants relating to dilapidations are normally found in the lease. Relevant covenants include:
- A repairing covenant.
- A decorating covenant
- A covenant to comply with statute
- A covenant to yield up and any related responsibilities that specify the condition in which the tenant is required to leave the premises at the end of the term.
- Reinstatement requirements that relate to alterations carried out by the tenant.
Further obligations may be found in a supplement document, for example, a licence for alteration or a deed of variation.
What are the remedies available to the landlord for breach of a repairing covenant?
The remedies available to a landlord will be dictated by the terms of the commercial lease agreement. Available remedies can include:
- Damages – during the term of the lease, claiming damages for breach of repairing covenants is limited by statute. Therefore, in practical terms, it is only available after the commercial tenancy ends.
- Forfeiture – most commercial leases contain an express right for the landlord to peaceably re-enter the property. This gives a landlord the right to forfeiture; however, the right can only be exercised if the landlord has served a Section 146 Notice on the tenant, which specifies the details of the breach, a requirement for the breach to be remedied, and a demand for monetary compensation. It is important for landlords to remember that tenants must be given a reasonable time to remedy the breach.
- Jervis v Harris clauses – most commercial leases contain a clause permitting the landlord to enter the premises and carry out repairs and recover the related costs of doing so from the tenant.
- Specific performance – the Courts have ruled that in rare cases, specific performance is an appropriate remedy.
What is a ‘yield up’ clause?
To ensure a landlord is not left with a property in disrepair at the end of a tenancy, most commercial leases contain a ‘yield up’ clause. The clause clarifies what is expected of a tenant as regards repairs, decoration, and removal of alterations and signage at the end of the term. If the tenant breaches the express yield up clause, the landlord may claim damages in the form of loss of rent whilst repairs are carried out.
Why choose us?
Whether your commercial lease concerns warehousing, retail, manufacturing, or office space, disputes over dilapidations are often stressful for everyone involved; however, with the right professional advice, this does not have to be the case. Our Commercial Property Solicitors will look carefully at the terms of the agreement and advise on whether a breach of repair covenants has occurred and the remedies that are available. Our team understands how busy our commercial property clients are and therefore work to speed to resolve issues as swiftly as possible.
We are proud of our personal service to all our clients, and where possible, we are always available by phone and will respond to your email within 24 hours. As a full-service law firm, we can also provide advice on other commercial matters such as contracts and dispute resolution.
We will leave no stone unturned when handling commercial property transactions and disputes. Each member of our team has the experience and resources available to ensure that every aspect of a lease agreement including dilapidations, that requires attention will be spotted, brought to the fore, and managed. Our commercial landlord and tenant clients trust us to provide the commercially-astute advice required to protect their interests.
Our Solicitors are businesspeople themselves; therefore, we understand that every decision must encompass commercial reality. We receive most of our instructions via word of mouth recommendations because business owners in Coventry and Warwickshire are confident that we have the knowledge and dedication required to ensure any issues regarding dilapidations are resolved quickly, confidentially, and in a way that ensures our clients’ best interests are protected.
We are focused on results and achieving them in the swiftest, most cost-effective way possible. Our Commercial Property Solicitors will take care of your legal concerns so you can concentrate on your organisation’s future growth and prosperity.
To talk to us about dilapidations, please contact us using the form below.
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Depending upon the complexity we are able to offer fixed fees in some cases. In other cases our solicitors charge the following hourly rate:
- Partner/Member SolicitorHourly rate of £250 + VAT
- Senior Solicitor or Head of Dept: (PQE 8yr+)Hourly rate of £225 + VAT
- Assistant Solicitor/Fee Earner (PQE 3/7yr)Hourly rate of £200 + VAT
- Newly Qualified Fee Earner (PQE 1/3yr)Hourly rate of £170 + VAT
- Paralegals/TraineesHourly rate of £120 + VAT
- Support ParalegalsHourly rate of £100 + VAT