As a commercial landlord, you may concern over the condition of a property. You may also have concerns over any alterations that the tenant has made without permission. If you are, you’re able to make an ‘interim’ dilapidations claim on the tenant, which lists the issues and informs the tenant that they need to make repairs or remove any alterations.
What happens if the tenant doesn’t do the works?
Dilapidations claims can often be a complicated process, and it’s common that a tenant won’t agree to immediately undertake all the works you’ve asked for. They also have the right to find their own surveyor to look at the claim for them, who may disagree with you (or your surveyor) or ask for further information.
Depending on the terms of your lease, there are several options available if the tenant isn’t co-operating.
Forfeiture
Many leases have clause that allows you to end the lease if the tenant doesn’t comply with its terms. However, it often isn’t that simple. Many leases are covered by the Leasehold Property Repairs Act 1938, which gives them the right to dispute your forfeiture notice. If they do, you’ll need to prove that the issues with the property fall under under certain criteria. These criteria include issues such as any disrepair having an effect on the property’s value, or the work being required to comply with an Act of Parliament.
Leases under the Leasehold Property Repairs Act 1938 must have a term of seven years or longer, with at least three years left on the lease.
Re-entry
Many leases contain a clause which allows the landlord to re-enter the property themselves to carry out repair works. This is commonly known as a ‘Jervis v Harris’ clause and provides a landlord with an alternative option if they do not wish to evict the tenant. The costs for the repair works can then be recovered from the tenant as a debt.
Jervis v Harris clauses must be used carefully. If the landlord doesn’t serve notices in the correct way, they can breach lease clauses of their own related to ‘quiet enjoyment’, or can risk trespassing on the property. It is always best to seek legal advice if considering use of a re-entry clause.
Specific performance
If neither of the above options are available, the landlord can take the tenant to court and ask them to grant specific performance. This gives the landlord rights provided by the court to either enforce the terms of their lease, or to forfeit it. This option is usually only required if the lease doesn’t contain any options for forfeiture or re-entry.
Interim dilapidations can be complicated
If you are a landlord with concern over the condition of a property and the lease isn’t due to end, it is essential that you find a dilapidations surveyor to advise you on the best course of action. This will involve an inspection by the surveyor to produce a schedule of dilapidations, and a negotiation with the tenant to agree a solution.
If you need further advice on dilapidations or would like to book a survey, feel free to get in touch.