Dilapidations – The Best of Intentions

The majority of our work comes from building surveyors and lawyers. Understandably, as either or both tend to be the first port of call for the owner or tenant at lease end.

Our intention fits with our reputation for giving clear and honest advice as to what extent, and why, a Section 18 (Diminution) Valuation will assist their case. Whilst occasions are generally few where the impact is likely limited, we say so. We are plenty busy, so no need to create work.

Speaking of “intentions”, an anomaly in the Protocol makes it even harder for building surveyors to advise clients on the merits or otherwise of obtaining a DV. The Protocol directs building surveyors to declare/enquire (as the case may be) into the “landlord’s intentions”. Rarely, if ever, do owners comprehensively (or honestly) detail, even to their own advisors.

Fortunately, the law helpfully detaches the Valuer from this artificiality, instead requiring the assumption of sale to a so-called “Hypothetical Purchaser” (HP). It is therefore for the valuer to then advise, informed by transacting experience, the extent to which the open market would modernise/alter/repurpose the particular property, thus making for far more likely supersession than is currently apparent (or admitted).

Almost all vacated commercial and leisure properties require works other than dilapidations to best enable/adapt to modern demand and expectations, which works snuff out or supersede, works which the tenant’s building surveyor must price to remedy.

So in reality, no matter how much the actual landlord, or their building surveyor, might protest to the contrary, what matters at law is which path the HP would likely follow.

Hence, good diminution valuations are so effective, and building surveyors are not the right discipline to advise on whether one will assist. Just as the valuer is not the correct surveyor to ask about appropriate remedies and costings.

But many building surveyors are stuck for a reliable specialist diminution valuer to ask. 

Well now you know. Along with the myriad building surveyors across the UK & ROI who regularly come to us to confidentially discuss a case, without commitment or obligation, please just ask.

Our intentions are sound – here to help you decide on the merits of the case at hand.

For more information or advice on dilapidations and diminution valuations, please email paul@radius-consulting.com for specialist advice.