As part of the property cycle for leasehold premises, there are various stages that, at times, need to address dilapidations. These may be as a Tenant or as a Landlord.
The GKS teams detailed technical knowledge of dilapidations legislation and procedures to allow us to act for both Landlords and Tenants.
Our expert approach allows GKS to reach a suitable settlement figure at the earliest opportunity. The legal expertise that we have protects our Clients position whilst complying with all obligations pursuant to the Dilapidations Protocol.
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Landlords must deal with dilapidations disputes proactively and fairly to comply with legal obligations pursuant to the Civil Procedure Rules, in order to avoid suffering financial disadvantages. In connection with this, GKS offers the following services to Landlords with regards to this Procedure:
Preparation of Schedules of Dilapidations
A clear record of all breaches of Tenant covenant at Lease end or during the term of the Lease.
A Schedule of Dilapidations is a document prepared in contemplation of litigation pursuant to the Dilapidations Protocol. GKS would prepare the Schedule of Dilapidations, providing clients with full knowledge of their legal obligations should a settlement not be achieved and litigation be required.
To avoid financial disadvantage, Tenants should consider their potential Dilapidations liability well before lease end. A pro-active Tenant can reduce their liability substantially. With this in mind, GKS can offer the following services to Tenants:
Defending Landlord dilapidations claims
GKS provides a robust, accurate, independent service to Tenants faced with Landlord dilapidation claims. GKS has many years of collective experience in handling these claims and mitigating Tenant’s expenditure.
Break clause advice
Tenant break options within Leases are typically more complicated than might be expected. In order to effectively operate a break, a Tenant must liaise closely with their Surveyor and Lawyer. GKS has many years of experience in successfully operating break clauses.
Property management & dilapidations
Property Managers should address dilapidations liabilities to maximise their valued added within any organisation.
Support can be provided when Property Managers are required to arrange for the service of dilapidations schedules [on tenants or sub-tenants] or may have to defend schedules received from landlords/superior Landlords etc.
GKS provide the full range of dilapidations advice and expert witness support
FRS102 Dilapidations Liability Assessments
Financial Reporting Standard 102 (FRS102) was produced by the Accounting Standards Board and includes Dilapidations Liabilities. By working regularly with their accountants and lawyers we understand the Tenant’s obligations to include assessment of the dilapidations in their annual accounts.
Summary of the Obligation
The amount recognised as a provision should be the best estimate of the expenditure required to settle the obligation at the balance sheet date.
The expertise offered by GKS provides accurate quantified assessment setting out the legal and technical basis calculations, based on our Dilapidations experience and an understanding of FRS102.
Accountants and Dilapidations
We offer a specific service to accountants comprising:
- lease-end strategies to mitigate the dilapidations claim;
- FRS102 Liability assessments; and
Corporate acquisitions/disposal liability assessments.
Corporate acquisition & disposal
Dilapidations liabilities should be factored into all acquisitions/disposals of any corporate entity with leasehold property interests to assess the value of the dilapidations. GKS partners with clients and their professional advisors providing a range of services in this area.
GKS can provide a detailed liability report (for the transferor or transferee) of any business, or their legal advisor to provide a realistic interpretation of the lease covenants, along with accurate costings.