Diminution valuations for building surveyors

Abstract

This article arises out of a paper given at the RICS Dilapidations Conference 2012, updated to reflect recent case law. It considers damages for breach of the repairing obligations under a lease. Their assessment requires careful consideration of the cost of works, and the diminution in the value of the landlord's reversionary interest, if any. Notwithstanding this point, it is the author's experience that the interrelation of the two are not always understood by building surveyors when advising their clients at the outset of a dilapidations dispute. The author calls on his experience of dealing with diminution valuations to help the building surveying team to a better understanding of the valuation process and the role of the valuer. This includes an explanation of why establishing the cost of remedying the breaches is important at the outset. Guidance is also given on how the building surveying team can assist the valuer and ensure more accurate assessment of the value of the landlord's reversionary interest.