A. NOT NECESSARILY.
Landlords, or more accurately their appointed surveyor, will often include charges in addition to repair works identified at the property. These have included;
VAT, Preparation fees of the schedule, Supervision of works, Solicitors fees to serve the schedule, insurance, business rates and loss of rent.
The landlord may claim loss of rent that cannot be recovered from a new tenant for the period whilst he is carrying out of repairs after lease expiry. The landlord’s theory here being that if the tenant carried out the works then the landlord could potentially lease from day one after the tenant leaves the property.
But most claims for have failed. For a landlords claim to be successful he must be able to demonstrate that the condition of the property and state of disrepair directly led to the loss of rent from the next tenant. The landlord would also have to prove the next letting was immediately awaiting occupation. And in this market proving both these requirements is very unlikely although property with a very demand, such as major high street stores, will have a stronger case.
The true cost of works plus other losses must be a natural and foreseeable consequence of the breach. The landlord can only recover monetary loss.
As usual the RPS advice is twofold.
1; You should start considering your dilapidations strategy (and your long term property needs) 18 months in advance.
2; Read the lease. This is the arbiter and should set out how dilapidations & repairs are to managed and when any landlords dilapidations schedule may be issued. Sometimes even after the lease has expired!
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