Dilapidations & Commercial Tenants - A Masterclass

Introduction

There is an all-too-familiar pattern in relation to the repair of commercial premises: at the end of the lease the tenant pays for not repairing the property; but the landlord may spend that payment on just about anything else but repair. If it is spent on the property at all, it will probably go to removing the tenant’s fit-out, which could often have been used by a new tenant. It is often an inefficient structure for maintenance and repair.

But change is in the air. Ever-shorter lease terms, and greater flexibility as to change of use, both point to more limited repair liability. Concern over climate change calls into question familiar approaches to repair, as well as bringing more onerous regulation. Conventional lease provisions may be challenged by these developments.

It is striking how often dilapidations disputes can be traced back to what was done or not done at the time the lease was granted. Due diligence prior to signing the lease is one issue, but problems may arise from inadequacy of schedules of condition, lease drafting issues, and licences to alter.

At the same time, dilapidations under an expired lease cast a shadow into the future, too. When dealing with a new letting, or a sale, how does that impact the calculation of an outstanding dilapidations claim, and should the new transaction be structured accordingly? What if a sitting sub-tenant intends to renew their lease?

This in-person course considers current law and practice critically, by reference to practical scenarios. The presenter is an expert and author on the topic of dilapidations.

What You Will Learn

This course will cover the following:

• Anticipating issues before grant of the lease
• Limiting obligations in short-term leases
• Sustainability and dilapidations
• Providing for alterations, tenant’s fixtures and reinstatement
• Issues arising from sub-leases
• How the new lease affects the old dilapidations claim
• Dispute resolution clauses