1. Understanding the difference

Interim Schedule of Dilapidations

Served during the lease term, while the tenant is still in occupation. Addresses breaches that are happening now and shouldn’t wait until lease end.

Terminal Schedule of Dilapidations

Served shortly before or at lease expiry. The comprehensive claim covering all breaches: repairs, decorations, reinstatement, compliance matters.

Final Schedule of Dilapidations

Served after the lease has ended and the tenant has vacated. Similar to a terminal schedule, but the tenant can no longer do the works — the claim is for compensation only.

Each serves a different purpose and is appropriate in different circumstances.

2. When to use an interim schedule

Interim schedules are appropriate when breaches during the lease term are causing problems that shouldn’t wait:

Ongoing deterioration

The tenant’s failure to maintain is causing the property to deteriorate in ways that will worsen significantly if left until lease end. Water ingress damaging structure. Blocked gutters causing damp. Neglect that compounds.

Serious disrepair

The property is in such poor condition that it’s affecting value, neighbouring properties, or creating safety/compliance issues.

Pattern of neglect

The tenant consistently fails to maintain despite informal requests. A formal schedule documents the position and creates pressure.

Long lease remaining

If there are many years until lease end, waiting isn’t sensible. Problems that exist now will be far worse by expiry.

Evidence preservation

You want to document the current position formally, creating a record that can be referenced later.

What interim schedules typically cover:

  • Repair items — breaches of the repairing covenant
  • Urgent compliance matters
  • Items causing ongoing damage

What interim schedules typically don’t cover:

  • Redecoration (usually only required at lease end or at specified intervals). The exception would be external redecoration items which if not addressed would cause ongoing deterioration, such as decay.
  • Reinstatement of alterations (only required at lease end)
  • Yielding-up matters

3. When to use a terminal schedule

Terminal schedules are the main event — the comprehensive claim served around lease expiry:

Lease approaching expiry

The natural time for a full claim covering everything the tenant should have done but hasn’t.

Covers everything

Repairs, decorations, reinstatement of alterations, compliance matters, cleaning, yielding-up requirements — the complete picture.

Triggers the Protocol process

The Dilapidations Protocol applies, with expected timeframes for response and negotiation.

Typical timing:

Serve 3-6 months before lease expiry (terminal) or within 56 days after expiry (final). Earlier service gives more negotiation time.

4. Can you serve both?

Yes. They’re not mutually exclusive.

A common pattern:

  1. Interim schedule mid-lease — Addressing serious ongoing breaches, prompting action
  2. Terminal schedule at lease end — The comprehensive claim covering everything

The interim schedule doesn’t preclude the terminal claim. It may even strengthen it by showing you raised concerns earlier and the tenant failed to act.

However, don’t use interim schedules as a harassment tool. They should address genuine breaches that warrant formal action during the term.

5. Strategic considerations

Interim schedule advantages:

  • Prompts tenant action before problems worsen
  • Documents the position formally
  • May result in works being done (reducing terminal claim, but also reducing dispute)
  • Shows you’re monitoring and engaged
  • Creates evidence trail

Interim schedule risks:

  • May antagonise tenant relationship
  • Tenant may do minimal/poor works
  • Costs time and money for something that isn’t the main claim
  • Not appropriate for minor breaches
  • Potential to forfeit the lease

Terminal schedule advantages:

  • Comprehensive — covers everything in one claim
  • Clear Protocol process
  • Natural timing at lease end
  • Most claims follow this pattern

Terminal schedule risks:

  • Waiting may allow problems to worsen
  • Less opportunity to prompt mid-lease action
  • All negotiation compressed around lease end

6. What about repairs notices?

If the lease contains a Jervis V Harries clause (landlord’s right for re-entry to complete works), a softer approach mid-term would be to serve a repairs notice.

A Repairs Notice details the repair works required by the tenant within a strict time period as defined by the lease. In the event that the tenant does not comply, the landlord can enter onto the property, complete the works and recover the costs as a debt, rather than damages. This has the added benefit of not risking forfeiture of the lease as would be the case under interim schedule served under a S.146 notice.

7. Practical guidance

Serve an interim schedule if:

  • The property is deteriorating and waiting will make things significantly worse
  • There are years remaining on the lease
  • You’ve raised concerns informally without result
  • Specific breaches need addressing now (water ingress, safety issues)
  • Breaches are significant enough that you are prepared to risk forfeiting the lease.

Wait for a terminal schedule if:

  • Lease expiry is within 18-24 months
  • Breaches are typical wear and tear, not causing ongoing damage
  • The relationship with your tenant is reasonable and you expect normal negotiation
  • Decoration and reinstatement are the main issues (these wait until lease end anyway)

Consider both if:

  • There are immediate serious breaches AND the lease has time to run
  • You want to establish a formal record now AND claim comprehensively at lease end

8. Documentation matters

Whichever route you choose, documentation is essential:

  • Photographs — Before, during, after
  • Written records — All correspondence, formal and informal
  • Inspection records — Dated, detailed, evidenced
  • The schedule itself — Properly prepared, Protocol-compliant

Good records support your claim whether you’re serving interim, terminal, or both.

Key Takeaways

  • Interim schedules address mid-lease breaches that shouldn’t wait
  • Terminal schedules are the comprehensive lease-end claim
  • You can serve both — they’re complementary, not exclusive
  • Interim schedules suit serious, ongoing deterioration with time remaining on the lease
  • Terminal schedules suit most situations where lease end is approaching
  • Repairs Notices are the softer mid-term option when the lease allows and you do not wish to risk forfeiting the lease
  • Document everything — whatever route you take

Need Help?

Whether you need an interim schedule to address current problems or you’re planning for a terminal claim at lease end, we can advise on the right approach for your situation.

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