Top 5 Questions We Get About Schedules of Dilapidations
Schedules of Dilapidations can feel complex, whether you’re a landlord protecting an asset or a tenant approaching lease expiry. At Bressummer A.R.K, these are some of the most common questions we’re asked by property owners, asset managers, and occupiers.
In this blog, we answer the five questions we hear most often, helping you understand your obligations, manage risk and cost, and avoid unnecessary disputes.
What is a Schedule of Dilapidations?
A Schedule of Dilapidations is a formal report that sets out a tenant’s obligations to repair, maintain, and reinstate a commercial property under the terms of their lease. It identifies any breaches, details the required remedial works, and provides an estimated cost. For landlords, it supports recovery of losses. For tenants, it clearly sets out potential liabilities.
There are two main types of dilapidation schedules which are served depending on the length of time remaining on the lease.
Firstly; an ‘interim’ schedule which, as the name suggests, is more appropriate to serve in the middle of the lease term or before the lease is nearing expiry.
Secondly; and more commonly seen, a ‘terminal’ schedule which is served towards the end of the lease term (usually within the last year) or after the lease has expired.
These two types of schedules fundamentally set out breaches of lease covenants and suggested remedial action for the Tenant to take but the main difference is that the terminal schedule will have estimates of costs associated to these in the ‘Scott schedule’ which forms the basis of the Quantified Demand and overall claim.
When should a Schedule of Dilapidations be served or dealt with?
A Schedule of Dilapidations is usually issued towards the end of a lease. A terminal schedule is typically served within six months before or after lease expiry, although we generally recommend issuing it before the lease ends. Doing so allows landlords and tenants to discuss the required works early, gives tenants the opportunity to complete them, and helps reduce void periods and disputes at lease end.
While landlords are not legally required to serve a schedule, and tenants can rely on their lease or seek professional advice, presenting a schedule helps clarify expectations and considers the property’s future use.
An interim schedule may also be served during the lease term if there are concerns about maintenance, property condition, or a tenant’s ability to fund necessary works. If a tenant fails to act, a landlord may issue a repair notice under the lease. If this is ignored, and following principles established in Harris v Jarvis, the landlord may be entitled to enter the property and carry out the works themselves. This approach should always be carefully balanced against its impact on tenant relations and ongoing business operations.
We advise both landlords and tenants on timing, strategy, and implications, ensuring obligations are clear while risks and costs are managed effectively.
How much can a landlord claim for dilapidations?
A landlord can claim for losses directly arising from a tenant’s failure to comply with their lease obligations. This can include repair, decoration, and reinstatement works, as well as professional fees. Any claim must reflect the tenant’s actual or estimated liability and take account of the landlord’s intentions for the property, such as refurbishment, redevelopment, or demolition, so that the claim does not exceed the loss suffered.
If a tenant does not carry out the required works, a landlord may seek settlement based on estimated losses. Where negotiations stall, it is often sensible for the landlord to undertake the works themselves to crystallise the loss and present a final, quantified schedule.
Landlords may also seek to recover consequential losses, such as lost rent, insurance, rates, or utilities during the works. These claims can be harder to substantiate unless the property remained vacant as a direct result of the tenant’s non-compliance. Importantly, a landlord cannot profit from dilapidations; any claim must reflect loss only.
Costs should be supported by evidence, using up-to-date published data, recent tender returns for comparable works, or, where necessary, by specifying and tendering the works to establish current market rates.
Can a tenant challenge or negotiate a dilapidations claim?
Yes. An initial dilapidations claim reflects the landlord’s, or their surveyor’s, interpretation of the lease and is often based on estimated costs. Tenants are entitled to challenge liability, the scope of works, the standard of repair required, and the costs claimed.
Where a Schedule of Condition is attached to the lease, it may limit a tenant’s liability, although this is sometimes overlooked in claims. Tenants may also choose to carry out the works themselves or obtain competitive quotations, provided the works comply with the lease.
If there are questions around the landlord’s intentions, such as planned improvements, redevelopment, or demolition, or if market conditions affect the property’s value, a Section 18 valuation can form part of the tenant’s defence. This limits the claim to the reduction in value between the repaired and unrepaired states.
Engaging a surveyor with dilapidations expertise can help verify liabilities, negotiate costs, and ensure any settlement is reasonable and fair.
How long does the dilapidations process take and when is it settled?
The length of the dilapidations process depends on the complexity of the lease, the condition of the property, and whether the parties agree on liability and cost. Negotiations can be prolonged where disputes arise.
Under the Pre-Action Protocol for Dilapidations Claims, tenants typically have 56 days to respond to a landlord’s claim before formal legal proceedings may begin. This framework encourages early exchange of information and negotiation, often allowing matters to be resolved without court action.
Our team has extensive experience managing dilapidations claims for both landlords and tenants and aims to resolve matters efficiently and pragmatically. Where required, we also assist with settlement agreements and structured payment terms to ensure outcomes are clear and commercially sensible.
Summary
Dilapidations do not need to be daunting. With early planning, clear communication, and professional advice, landlords and tenants can manage risk, control costs, and avoid unnecessary disputes. If you are approaching lease expiry or dealing with a dilapidations claim, the chartered building surveyors at Bressummer A.R.K can provide expert guidance to ensure the process is handled efficiently and fairly.
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