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Strategic Dilapidations Report

Quality of Lease Example

We have seen a signed copy of the lease and we would advise that we found the main liabilities that we feel you have are:

Repairs

Redecoration

Reinstatement - alterations

Statutory Regulations

Yield Up – the term used for how you have to give the property back which may be different to the lease terms.

Within your lease these various elements are referred to.  For the record, we believe the main clauses are as follows:

Repair

Items 4.1- 4.1.6

Including the Not Obligated to Section

Redecoration

Items 4.2 & 4.3

Every three years during the term, 3 months immediately preceding the end of the lease so this is why the painting needs to be done.  It does actually say that the landlord needs to approve. 

Items 4.4, 4.5, 4.6, 4.7

Relates to general tidying of the property including cleaning windows.

Reinstatement

Item 5

Alterations and Additions to the property

Yield up clause (known as end of lease in this instance)

Item 6.

This is a clause over and above those that are required throughout the lease and there may be additional items.

Item 6.1

Refers to good repair and redecoration condition in accordance with the tenants obligations.

Item 6.2     

Relates to clearing of anything that is considered to be the tenant’s fixtures and fittings.

Item 6.3

Rent clause act which means you will be paying rent if the property isn’t yielded up in the correct condition

Item 6.4

What is known in the Dilapidations industry as a supercession clause which means that if work is being carried out anyhow at the end of the lease you don’t need to carry it out so you do need to include request to the landlord asking them to confirm they are not going to carry out alterations and extensions. 

Item 6.5

Sell on clause for tenant’s fixtures and fittings

Item 6.6

Contracts of employment

Main items identified from Interim Dilapidations

We would refer to the Appendices document in the lease reference page one to page nine.