Schedule of Dilapidations- FRI lease

[inform]

our tenants FRI lease is coming to an end and he wishes to renew it. The premises is in a state of disrepair as he hasn't done any repairs or maintened the property in accordance with his lease obligations including the electrical installations which is not up to iee standard. We are having a schedule of delapidation done and need to know how do we serve notice on him using the schedule. Does it have to be in a prescribed format and do we need a solicitor to serve a notice or is it just a matter of writing to him and asking him to get the work done as outlined in the schedule. If he refuses to undertake the work, will we be able to use this in order to opose his request for renewal when we issue him with the section 25 noticein due course. Any advice would help and thank you so much

[Editor]

It would be usual to engage a chartered surveyor to prepare a schedule of dilapidations some months before the end of the tenancy. This would be prepared in the light of the lease terms (agreed tenant's repairing obligations) the original schedule of condition with photographs if possible, details of existing repairs carried out through service charges etc, and landlord's future intentions - in this case, to offer a new tenancy on the same basis.
The schedule should be served in good time (you do not need a solicitor to do this) allowing say 2 months for the tenants to respond, to be followed by negotiations on the works.
The tenant's response should gauge your approach on whether or not to oppose renewal, and a poor response would obviously help your case.
If the tenancy ends, then your repairs become somewhat simplified as it's easier when you are in control and your case for damages is simply based on the works you carry out yourself.
An experienced surveyor is going to be important here as the surveyor can tie everything together - repairs and renewal etc.

[SteveP]

Dilapidations is a complex area of law and the experts are chartered surveyors.

Even FRI terms vary, the exact wording of the repairing covenants can significantly alter the tenants obligations, as can any licences granted by the landlord.

You really must obtain advice from a surveyor who has seen the lease, but I have advised clients in the past not to serve a formal schedule where they have a good relationship with the tenant and wish to extend the lease or renew on similar terms.

Consider this. You can serve notice long after the lease ends if you wish. So lets suppose the tenant is unaware (as sadly they often are if they are small businessmen) just how onerous the terms are. By serving a full formal schedule you will be telling him just how onerius they are, and may make him less likely to renew. Much disrepair may be of no concern to you at this stage. If it is disrepair that isn't going to cause the property to deteriorate further then so long as the tenant remains responsible for it when he finally leaves, then so what.

My advice to clients is generally don't worry about the law...you are paying me to do that...just tell me what you want to achieve. You need to be discussing what you want to achieve with your surveyor rather than the law.