Put simply, dilapidations are end of commercial tenancy landlord versus tenant disputes. More often than not, related to the breach of a tenants repairing obligations of a commercial property lease. Dilapidations typically include any reinstatement or repair works and redecoration that have not been completed by a tenant, usually at the end of their agreed lease period, and which constitute a breach of the terms of that lease.
Typically when a tenant fails to comply with their repairing and reinstatement obligations at the end of their lease the landlord is entitled to claim damages from the tenant responsible in the form of dilapidations. Dilapidations claims are usually based on the cost of the repairs and reinstatement works that the tenant should legally have completed prior to vacating the premises, plus any loss of rent for the period needed to complete those works. However, there is a statutory cap on the size of the landlords claim. Under Section 18(1) of the Landlord and Tenant Act 1927 the size of the landlords claim for damages is limited to the diminution in value to the landlord’s reversion caused by the tenants breaches of their lease.