1. Disputes are expected
Very few dilapidations claims settle at the initial figure. Tenants have professional advice too, and their surveyors will:
- Challenge items they don’t think are lease breaches
- Reduce costs they consider inflated
- Raise defences (Schedule of Condition, fair wear and tear, supersession)
- Argue Section 18 diminution
This isn’t unreasonable obstruction. It’s the normal process. Your initial claim is your opening position. Their response is theirs. Negotiation follows.
2. Understanding the response
Your tenant’s counter-schedule should set out their position on each item:
Accepted items
Some items may be accepted in full or with minor adjustments. These are effectively agreed.
Quantum disputes
Tenant accepts the breach but disputes the cost. Maybe they think £5,000 for redecoration is reasonable, not £8,000.
Liability disputes
Tenant argues the item isn’t a breach at all:
- Not their obligation under the lease
- Covered by Schedule of Condition
- Fair wear and tear
- Already remedied before they left
Defence arguments
Broader arguments that reduce or eliminate liability:
- Supersession (your plans make the works pointless)
- Section 18 cap (your property value isn’t diminished by this amount)
- Betterment (you’re claiming for improvement, not repair)
3. Assessing the response
Work with your surveyor to evaluate the tenant’s position:
Are their points valid?
Sometimes tenants raise legitimate points. If your schedule overclaimed in places, accept the valid challenges and focus on what’s genuinely recoverable.
Where are they wrong?
Identify items where the tenant’s response is weak:
- Misreading the lease
- Ignoring evidence
- Applying defences incorrectly
- Making assertions without support
These are the items to push back on.
What’s negotiable?
Some disputes are about degree, not principle. Both parties agree redecoration is needed; they disagree on the specification or cost. These often split down the middle.
4. The negotiation process
Without prejudice discussions
Most negotiation happens on a “without prejudice” basis — meaning it can’t be used against you in court if matters escalate. This allows frank discussion of settlement positions.
Scott Schedule exchanges
The surveyors exchange updated schedules showing each item, both parties’ positions, and any movement. This narrows the issues systematically.
Meetings and calls
Direct discussion between surveyors often resolves issues that look intractable on paper.
Incremental progress
Settlement rarely happens in one leap. Expect gradual movement: items drop off, costs adjust, defences are partially accepted. The gap narrows over multiple exchanges.
5. Common sticking points
Schedule of Condition disputes
If a Schedule of Condition exists, its interpretation often causes disputes:
- Does it cover this item?
- What condition does the photo actually show?
- Has the tenant’s use caused deterioration beyond the schedule?
These require careful analysis of the schedule against the claimed items.
Supersession arguments
If you’re planning redevelopment, refurbishment, or have already re-let without doing the claimed works, expect supersession challenges. Be prepared to demonstrate that works would have been done but for the tenant’s breaches.
Section 18 valuations
If the tenant argues the diminution cap, you may need a formal diminution valuation from a valuer. This adds cost and complexity but may be necessary for high-value disputes.
Quantum disagreements
Cost disputes often come down to specification. Is a full re-roofing claim justified when patch repairs would suffice? Is the decoration specification appropriate or gold-plated?
6. When to hold firm
Maintain your position when:
- Your schedule item is properly evidenced
- The lease clearly supports your claim
- Costs are realistic and defensible
- The tenant’s response is weak or unsupported
Don’t concede valid claims just to settle quickly.
7. When to compromise
Consider movement when:
- The tenant raises valid points
- Your original claim is overstated in places
- Costs can be justified at a lower level
- Compromise achieves acceptable settlement now vs. uncertain litigation later
Settlement requires both parties to move. Being realistic isn’t weakness; it’s commercial sense.
8. If negotiation stalls
When the gap remains unbridgeable:
Mediation
A neutral mediator facilitates settlement discussions. Often effective for disputes where both parties want resolution but can’t bridge the gap themselves.
Expert determination
Some leases provide for disputes to be determined by an expert (often a surveyor or RICS-appointed person). The determination is binding.
Litigation
Court proceedings are the ultimate resolution but should be a last resort:
- Expensive (legal costs can be substantial)
- Uncertain (judges don’t always agree with surveyors)
- Slow (months or years to resolution)
- Public (court judgments are public record)
- Winner doesn’t always recover costs
Most landlords and tenants are better served by negotiated settlement.
9. Strengthening your position
Throughout negotiation:
Maintain professionalism — Adversarial approaches damage settlement prospects.
Keep evidence ready — Photographs, documents, records that support your position.
Get formal valuations if needed — Particularly for supersession or Section 18 arguments.
Consider your commercial position — What’s settlement worth vs. the cost and risk of litigation?
Trust professional advice — Your surveyor has done this before; their judgment on achievable outcomes is valuable.
10. Practical outcomes
Most disputed claims settle in a range:
- Simple disputes: Tenant’s response might achieve 10-30% reduction from your claim
- Significant disputes: Settlement might be 40-60% of claimed figure
- Major defences (strong supersession, clear Schedule of Condition): Settlement could be much lower
The outcome depends on the strength of positions, the evidence available, and the commercial circumstances of both parties.
Key Takeaways
- Disputes are normal — Your claim was an opening position; negotiation follows
- Evaluate responses honestly — Valid challenges should be accepted
- Push back on weak points — Maintain positions that are properly evidenced
- Negotiate professionally — Settlement requires both parties to move
- Consider alternatives to litigation — Mediation, expert determination
- Settlement is usually better — For both parties, than court
Need Help?
If your dilapidations claim is being disputed and you need help navigating the negotiation, we can help. We’re experienced in dilapidations negotiation and achieving reasonable settlements.
Related Services:
- Dilapidations for Landlords — Pursuing your claim
- Schedules of Condition for Landlords — Getting the baseline right
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