Quantified demand for dilapidations - Revision history

Editor at 09:44, 21 December 2021

2021-12-21T09:44:37Z

← Older revision		Revision as of 09:44, 21 December 2021
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	The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.		The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Alternative dispute resolution.		* Alternative dispute resolution.
Line 44:		Line 44:
	* Dilapidations protocol.		* Dilapidations protocol.
	* Lease Negotiations - Tenants Checklist.		* Lease Negotiations - Tenants Checklist.
		+	* Licence for Alterations for Apartment.
	* Rent-free period.		* Rent-free period.
	* Rent in administration.		* Rent in administration.

Designing Buildings at 06:45, 16 October 2020

2020-10-16T06:45:20Z

← Older revision		Revision as of 06:45, 16 October 2020
Line 36:		Line 36:
	The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.		The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Alternative dispute resolution.		* Alternative dispute resolution.
Line 54:		Line 52:
	* Supersession.		* Supersession.

−	=== External references ===	+	= External references =

	* RICS, A clear, impartial guide to Dilapidations For use in England and Wales. November 2013.		* RICS, A clear, impartial guide to Dilapidations For use in England and Wales. November 2013.
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	* Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].		* Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].

−	[[Category:Property_law]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Property_law]]

Designing Buildings at 14:21, 2 March 2017

2017-03-02T14:21:47Z

← Older revision		Revision as of 14:21, 2 March 2017
Line 1:		Line 1:
−
	Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repairs that are required by the lease. Further work may also be required at the end of a lease to reinstate alterations that have been made to the property by the tenant.		Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repairs that are required by the lease. Further work may also be required at the end of a lease to reinstate alterations that have been made to the property by the tenant.

Line 5:		Line 4:

	The quantified demand might include:		The quantified demand might include:
−	*The cost of the repair works.	+
−	*The loss of value to the property.	+	* The cost of the repair works.
−	*Holding costs.	+	* The loss of value to the property.
−	*Loss of rent and service charge.	+	* Holding costs.
−	*Rates.	+	* Loss of rent and service charge.
−	*Insurance.	+	* Rates.
−	*Security.	+	* Insurance.
−	*Utilities.	+	* Security.
−	*Cleaning.	+	* Utilities.
−	*Finance costs.	+	* Cleaning.
−	*Fees.	+	* Finance costs.
−	*Consequential losses such as professional fees, legal fees, the cost of administration of the repair work and VAT. The legal basis for consequential losses should be set out.	+	* Fees.
		+	* Consequential losses such as professional fees, legal fees, the cost of administration of the repair work and VAT. The legal basis for consequential losses should be set out.

	However, the landlord cannot profit from this claim, so if for example they do not intent to reinstate the property (perhaps if the property is to be demolished or refurbished), this must be taken into account.		However, the landlord cannot profit from this claim, so if for example they do not intent to reinstate the property (perhaps if the property is to be demolished or refurbished), this must be taken into account.
Line 27:		Line 27:

	The protocol suggests that the quantified demand should:		The protocol suggests that the quantified demand should:
−	*Set out clearly all aspects of the dispute, and set out and substantiate the monetary sum sought as damages in respect of the breaches detailed in the schedule as well as any other items of loss for which damages are sought.	+
−	*Set out whether VAT applies.	+	* Set out clearly all aspects of the dispute, and set out and substantiate the monetary sum sought as damages in respect of the breaches detailed in the schedule as well as any other items of loss for which damages are sought.
−	*Specify a date (being a reasonable time) by which the tenant should respond. This will usually be within 56 days after sending the quantified demand.	+	* Set out whether VAT applies.
−	*Where the monetary sum sought is based on the cost of works, it should be fully quantified and substantiated by either an invoice or a detailed estimate.	+	* Specify a date (being a reasonable time) by which the tenant should respond. This will usually be within 56 days after sending the quantified demand.
−	*If the quantified demand includes any other losses, they must be set out in detail, substantiated and fully quantified. The landlord should explain the legal basis for the recovery of losses, e.g. whether they are sought as part of the damages claim or under some express or implied provision of the lease.	+	* Where the monetary sum sought is based on the cost of works, it should be fully quantified and substantiated by either an invoice or a detailed estimate.
		+	* If the quantified demand includes any other losses, they must be set out in detail, substantiated and fully quantified. The landlord should explain the legal basis for the recovery of losses, e.g. whether they are sought as part of the damages claim or under some express or implied provision of the lease.

	The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.		The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.
Line 38:		Line 39:

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Alternative dispute resolution.	+
−	*Betterment.	+	* Alternative dispute resolution.
−	*Break clauses in leases.	+	* Betterment.
−	*Dilapidations.	+	* Break clauses in leases.
−	*Dilapidations protocol.	+	* Dilapidations.
−	*Lease Negotiations - Tenants Checklist.	+	* Dilapidations protocol.
−	*Rent-free period.	+	* Lease Negotiations - Tenants Checklist.
−	*Rent in administration.	+	* Rent-free period.
−	*Rent review.	+	* Rent in administration.
−	*Sample retail lease.	+	* Rent review.
−	*Schedule of dilapidations.	+	* Sample retail lease.
−	*Scott schedule.	+	* Schedule of dilapidations.
−	*Supersession.	+	* Scott schedule.
		+	* Supersession.

	=== External references ===		=== External references ===
−	*RICS, ~~[http://www.rics.org/Global/RICS-Dliapidations-consumer-guide.pdf~~ A clear, impartial guide to Dilapidations For use in England and Wales]. November 2013.	+
−	*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy.	+	* RICS, A clear, impartial guide to Dilapidations For use in England and Wales. November 2013.
−	*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].	+	* Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy.
		+	* Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].

	[[Category:Property_law]]		[[Category:Property_law]]
−	~~[[Category:Contracts_/_payment_/_payment]]~~

Designing Buildings: moved Quantified demand to Quantified demand for dilapidations

2014-10-06T06:46:57Z

moved Quantified demand to Quantified demand for dilapidations

← Older revision

Revision as of 06:46, 6 October 2014

Designing Buildings at 07:07, 11 May 2014

2014-05-11T07:07:55Z

← Older revision		Revision as of 07:07, 11 May 2014
Line 47:		Line 47:
	*Rent in administration.		*Rent in administration.
	*Rent review.		*Rent review.
		+	*Sample retail lease.
	*Schedule of dilapidations.		*Schedule of dilapidations.
	*Scott schedule.		*Scott schedule.
−	*~~Sample retail lease~~.	+	*Supersession.

	=== External references ===		=== External references ===

Designing Buildings at 09:57, 9 May 2014

2014-05-09T09:57:23Z

← Older revision		Revision as of 09:57, 9 May 2014
Line 42:		Line 42:
	*Break clauses in leases.		*Break clauses in leases.
	*Dilapidations.		*Dilapidations.
		+	*Dilapidations protocol.
	*Lease Negotiations - Tenants Checklist.		*Lease Negotiations - Tenants Checklist.
	*Rent-free period.		*Rent-free period.
Line 47:		Line 48:
	*Rent review.		*Rent review.
	*Schedule of dilapidations.		*Schedule of dilapidations.
		+	*Scott schedule.
	*Sample retail lease.		*Sample retail lease.

Designing Buildings at 10:20, 8 May 2014

2014-05-08T10:20:04Z

← Older revision		Revision as of 10:20, 8 May 2014
Line 1:		Line 1:
−

	Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repairs that are required by the lease. Further work may also be required at the end of a lease to reinstate alterations that have been made to the property by the tenant.		Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repairs that are required by the lease. Further work may also be required at the end of a lease to reinstate alterations that have been made to the property by the tenant.
Line 5:		Line 4:
	If the required works are not carried out, the landlord may issue a schedule of dilapidations, or a notice to reinstate. If dilapidations works are not carried out by the end of the lease, the landlord may claim damages from the tenant (a terminal dilapidations claim). This may take the form of a ‘quantified demand’ prepared by the landlord or their surveyor setting out details of the landlord’s losses as a result of the dilapidations.		If the required works are not carried out, the landlord may issue a schedule of dilapidations, or a notice to reinstate. If dilapidations works are not carried out by the end of the lease, the landlord may claim damages from the tenant (a terminal dilapidations claim). This may take the form of a ‘quantified demand’ prepared by the landlord or their surveyor setting out details of the landlord’s losses as a result of the dilapidations.

−	~~Other than the cost of the~~ cost of the works ~~themselves, or the~~ loss of value to the property~~, the quantified demand might include:~~	+	The quantified demand might include:
		+	*The cost of the repair works.
		+	*The loss of value to the property.
	*Holding costs.		*Holding costs.
	*Loss of rent and service charge.		*Loss of rent and service charge.
	*Rates.		*Rates.
−	*Insurance	+	*Insurance.
−	*Security	+	*Security.
−	*Utilities	+	*Utilities.
	*Cleaning.		*Cleaning.
	*Finance costs.		*Finance costs.
Line 17:		Line 18:
	*Consequential losses such as professional fees, legal fees, the cost of administration of the repair work and VAT. The legal basis for consequential losses should be set out.		*Consequential losses such as professional fees, legal fees, the cost of administration of the repair work and VAT. The legal basis for consequential losses should be set out.

−	However, the landlord cannot profit from this claim, so if for example they do not intent to reinstate the property (perhaps if the property is to be demolished or refurbished ~~anyway~~), this must be taken into account.	+	However, the landlord cannot profit from this claim, so if for example they do not intent to reinstate the property (perhaps if the property is to be demolished or refurbished), this must be taken into account.

	There may be a period of negotiation between the tenant and landlord in an attempt to agree a settlement figure. If the negotiation process fails then alternative dispute resolution or court proceedings may be necessary.		There may be a period of negotiation between the tenant and landlord in an attempt to agree a settlement figure. If the negotiation process fails then alternative dispute resolution or court proceedings may be necessary.

−	Valuation of the landlord’s losses can be complex, and so both parties may wish to appoint a surveyors to offer advice and prepare appropriate documentation. Further specialist advice may be necessary for complex components or aspects of a property, such as building services plant. Court proceedings may also involve expert witnesses.	+	Valuation of the landlord’s losses can be complex, and so both parties may wish to appoint a surveyors to offer advice and prepare appropriate documentation. Further specialist advice may be necessary for complex components or aspects of the property, such as building services plant. Court proceedings may also involve expert witnesses.

−	A ‘[http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy’ (the 'Dilapidations Protocol') is available from the Ministry of Justice. This describes the conduct the court expects the parties to follow before commencing proceedings, setting out a process and timetable for the exchange of information, and establishing standards for the content and quality of schedules of dilapidations and quantified demands.	+	A ‘[http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy’ (the Dilapidations Protocol) is available from the Ministry of Justice. This describes the conduct the court expects the parties to follow before commencing proceedings, setting out a process and timetable for the exchange of information, and establishing standards for the content and quality of schedules of dilapidations and quantified demands.

−	The protocol suggests that the quantified demand should~~, amongst other things~~:	+	The protocol suggests that the quantified demand should:
	*Set out clearly all aspects of the dispute, and set out and substantiate the monetary sum sought as damages in respect of the breaches detailed in the schedule as well as any other items of loss for which damages are sought.		*Set out clearly all aspects of the dispute, and set out and substantiate the monetary sum sought as damages in respect of the breaches detailed in the schedule as well as any other items of loss for which damages are sought.
	*Set out whether VAT applies.		*Set out whether VAT applies.
Line 31:		Line 32:
	*Where the monetary sum sought is based on the cost of works, it should be fully quantified and substantiated by either an invoice or a detailed estimate.		*Where the monetary sum sought is based on the cost of works, it should be fully quantified and substantiated by either an invoice or a detailed estimate.
	*If the quantified demand includes any other losses, they must be set out in detail, substantiated and fully quantified. The landlord should explain the legal basis for the recovery of losses, e.g. whether they are sought as part of the damages claim or under some express or implied provision of the lease.		*If the quantified demand includes any other losses, they must be set out in detail, substantiated and fully quantified. The landlord should explain the legal basis for the recovery of losses, e.g. whether they are sought as part of the damages claim or under some express or implied provision of the lease.
−	*The figures set out in the quantified demand should be restricted to the landlord’s likely loss. This is not necessarily the same as the cost of works to remedy the breaches.
−	*The quantified demand should not include items of work that are likely to be superseded by the landlord's intentions for the property.

	The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.		The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.
Line 51:		Line 50:

	=== External references ===		=== External references ===
−	*RICS, [http://www.rics.org/Global/RICS-Dliapidations-consumer-guide.pdf A clear, impartial guide to Dilapidations For use in England and Wales]. November 2013	+	*RICS, [http://www.rics.org/Global/RICS-Dliapidations-consumer-guide.pdf A clear, impartial guide to Dilapidations For use in England and Wales]. November 2013.
	*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy.		*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy.
	*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].		*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].

Designing Buildings: Created page with " Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repai..."

2014-05-08T10:14:42Z

Created page with " Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repai..."

New page

Dilapidations are breaches of leases due to the condition of the property being leased. This may result from mistreatment of the property or poor or absent maintenance or repairs that are required by the lease. Further work may also be required at the end of a lease to reinstate alterations that have been made to the property by the tenant.

If the required works are not carried out, the landlord may issue a schedule of dilapidations, or a notice to reinstate. If dilapidations works are not carried out by the end of the lease, the landlord may claim damages from the tenant (a terminal dilapidations claim). This may take the form of a ‘quantified demand’ prepared by the landlord or their surveyor setting out details of the landlord’s losses as a result of the dilapidations.

Other than the cost of the cost of the works themselves, or the loss of value to the property, the quantified demand might include:
*Holding costs.
*Loss of rent and service charge.
*Rates.
*Insurance
*Security
*Utilities
*Cleaning.
*Finance costs.
*Fees.
*Consequential losses such as professional fees, legal fees, the cost of administration of the repair work and VAT. The legal basis for consequential losses should be set out.

However, the landlord cannot profit from this claim, so if for example they do not intent to reinstate the property (perhaps if the property is to be demolished or refurbished anyway), this must be taken into account.

There may be a period of negotiation between the tenant and landlord in an attempt to agree a settlement figure. If the negotiation process fails then alternative dispute resolution or court proceedings may be necessary.

Valuation of the landlord’s losses can be complex, and so both parties may wish to appoint a surveyors to offer advice and prepare appropriate documentation. Further specialist advice may be necessary for complex components or aspects of a property, such as building services plant. Court proceedings may also involve expert witnesses.

A ‘[http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy’ (the 'Dilapidations Protocol') is available from the Ministry of Justice. This describes the conduct the court expects the parties to follow before commencing proceedings, setting out a process and timetable for the exchange of information, and establishing standards for the content and quality of schedules of dilapidations and quantified demands.

The protocol suggests that the quantified demand should, amongst other things:
*Set out clearly all aspects of the dispute, and set out and substantiate the monetary sum sought as damages in respect of the breaches detailed in the schedule as well as any other items of loss for which damages are sought.
*Set out whether VAT applies.
*Specify a date (being a reasonable time) by which the tenant should respond. This will usually be within 56 days after sending the quantified demand.
*Where the monetary sum sought is based on the cost of works, it should be fully quantified and substantiated by either an invoice or a detailed estimate.
*If the quantified demand includes any other losses, they must be set out in detail, substantiated and fully quantified. The landlord should explain the legal basis for the recovery of losses, e.g. whether they are sought as part of the damages claim or under some express or implied provision of the lease.
*The figures set out in the quantified demand should be restricted to the landlord’s likely loss. This is not necessarily the same as the cost of works to remedy the breaches.
*The quantified demand should not include items of work that are likely to be superseded by the landlord's intentions for the property.

The quantified demand will generally be separate from the schedule of dilapidations but may be bound into the same document.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Alternative dispute resolution.
*Betterment.
*Break clauses in leases.
*Dilapidations.
*Lease Negotiations - Tenants Checklist.
*Rent-free period.
*Rent in administration.
*Rent review.
*Schedule of dilapidations.
*Sample retail lease.

=== External references ===
*RICS, [http://www.rics.org/Global/RICS-Dliapidations-consumer-guide.pdf A clear, impartial guide to Dilapidations For use in England and Wales]. November 2013
*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/pre-action-protocol-for-claims-for-damages-in-relation-to-the-physical-state-of-commercial-property-at-termination-of-a-tenancy-the-dilapidations-protocol Pre-Action Protocol] for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy.
*Ministry of Justice, [http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_hou Pre-Action Protocol for Housing Disrepair].

[[Category:Property_law]]
[[Category:Contracts_/_payment_/_payment]]