Dilapidations Established over 50 years ago, Watts has always been at the forefront of building surveying, and dilapidations has been one of our core service provisions during our long history. Today our dilapidations surveyors work for both Landlords and Tenants and have even been subject to joint appointment where we are trusted by both parties.

Our surveyors have helped set the standards, having served on the RICS Dilapidations Steering Group, and have provided numerous talks on dilapidations (and other subjects) for the RICS. We have handled individual claims from a few thousand to over £3m., successfully taking a number of cases to court.

Our approach

We understand that every dilapidations claim is different, partly because rarely do two leases contain the same provisions, but also because the condition of the property and the intention for the property at lease end can differ significantly. Our service provision is tailored to the case, not off the peg, which is why Marks & Spencer (as Tenant) and Grosvenor Estates (as Landlord) considered it was appropriate to appoint us as a joint surveyor to assess a fair level of dilapidations in connection with the old John Lewis building in Liverpool.

Working with Landlords such as The Co-operative Group and Tenants like TUi, our surveyors are used to dealing with all manner of properties, from modern industrial units, to converted aircraft hangers, listed buildings, and even the odd former WWII prisoner of war camp.

Fully conversant with the RICS Dilapidations guidance note (7th edition) and CPR Part 35, and experienced in mediations and court representation, our surveyors provide unbiased advice at all stages of a dilapidations claim, and are always mindful of the client’s commercial position. Whilst no dilapidations case should go to court, we give the client the best chance of success if they do.

Watts are able to offer

Proven, independent advice to blue chip clients

Experienced dilapidations specialists

Competitive fee scales tailored to the client’s requirements

A network of offices conversant with the different legislation for England, Scotland and Northern Ireland

Lease and strategy advice including dilapidations and FRS102 assessment

Recent Commissions

Project: Undisclosed Client: Undisclosed Service: Defence of £2,5m dilapidations claimDescription: When one of our longstanding clients vacated one of their sites, they were presented with a £2,5m claim from the Landlord. Working closely with the client’s legal team and Section 18.1 valuers, Watts gave the client clear advice as to the correct level of settlement. Following commencement of legal proceedings, our strategy resulted in a successful settlement of the case at the anticipated level below £500k.

Project: Little Hulton, Greater Manchester Client: Shop Direct Home Shopping Service: Defence of £1,1m dilapidations claim Description: Watts were instructed by Shop Direct to advise as to lease end strategy (with a view to possibly renewing their lease) and defend a £1m+ claim received from the Landlord, which could have derailed the client’s ability to negotiate. Working closely with the client’s estates team and our project division, we undertook a number of key works that significantly reduced the impact of the Landlord’s schedule. The client went on to negotiate a new lease on more favourable terms.

Project: Units P1 8-11, Heywood Distribution CentreClient: Eurosimm Ltd Service: Lease end strategy and dilapidations defence Description: Watts were instructed by Eurosimm Ltd in connection with their lease end strategy. Preparing the Schedule of Condition for their new site, Watts also advised Eurosimm as to their dilapidations liability and how to mitigate the same. Our advice helped Eurosimm successfully relocate at minimum cost.

Project: Southgate 1 Client: The Emerson GroupService: Preparation of lease end strategy and terminal schedule of dilapidations, resulting in a settlement of over £500k. Description: The Tenant had not occupied the property for a number of years and Emerson feared that a S18.1 argument would be used to avoid paying for potentially costly dilapidations. Watts pioneered the use of a repairs notice within the last six months of the lease to enable the Landlord to enter the premises and undertake key repair works, and allowing the client to recover the dilapidations cost.

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