What are dilapidations?
Dilapidations are breaches of a tenant’s lease obligations relating to the condition of the property. Most commercial leases require tenants to repair, maintain, decorate, and reinstate the premises. When they fail to do so — or when the property’s condition at lease end doesn’t match what the lease requires — the landlord has a claim.
The claim is documented in a Schedule of Dilapidations: a formal, item-by-item list of breaches with associated costs. This is served on the tenant (or their surveyor), triggering a negotiation process that results in either a financial settlement or the tenant completing the required works. If one of your leases is approaching its end, bring us in early — a well-prepared schedule recovers more than a rushed one.
Types of schedules
Interim Schedule of Dilapidations
Served during the lease term. These are appropriate when the tenant’s failure to maintain the property is causing ongoing damage or deterioration that shouldn’t wait until lease end. They’re typically limited to essential repairs — not decoration or reinstatement.
Terminal Schedule of Dilapidations
Served shortly before or at lease expiry. This is the comprehensive claim covering all breaches: repairs, decorations, reinstatement of alterations, and compliance matters.
Final Schedule of Dilapidations
Served after the lease has ended. Similar to a terminal schedule, but with an important difference: the tenant no longer has the right to carry out the works. The claim is for compensation only.
Who needs this service?
You should instruct us if:
- Your tenant’s lease is approaching expiry
- A tenant is exercising a break clause
- You’ve received vacant possession and need to pursue a claim
- You want to serve an interim schedule during the lease
- A claim has stalled and you need expert input to progress it
- Your tenant is going into administration
We act for landlords of all sizes, from single-property owners to institutional investors with national portfolios.
When to instruct us
Ideally: 12-18 months before lease expiry
At minimum: before the lease ends
At latest: within 6 years of lease end
What we do
- 01
Lease review
We analyse the lease to understand exactly what the tenant is obligated to do. Repairing covenants, decoration requirements, reinstatement obligations, compliance provisions — the lease defines your entitlements. We also review any ancillary documents: licences for alterations, side letters, schedules of condition.
- 02
Inspection
We inspect the property in detail, assessing condition against the lease requirements. Every breach is documented with photographs and descriptions.
- 03
Schedule preparation
We prepare a formal Schedule of Dilapidations compliant with the Dilapidations Protocol. This sets out:
- Each breach of the lease
- The clause breached
- The works required to remedy it
- The cost of those works (except for interim schedules)
The schedule is a legal document. Professional preparation matters.
- 04
Quantification
We support each item with appropriate cost evidence — whether from cost databases, contractor quotations, or our own assessment. Vague or unsupported figures get challenged; properly evidenced costs are harder to dispute.
- 05
Service
We serve the schedule on the tenant or their surveyor in accordance with the Protocol.
- 06
Negotiation
The tenant (or their surveyor) will respond, challenging items they consider invalid or inflated. We handle this negotiation on your behalf — item by item, working through the Scott Schedule response process toward an agreed position.
- 07
Settlement
Most claims settle through negotiation between surveyors. We work toward the best achievable outcome for you. If settlement can’t be reached, we advise on alternatives: mediation, expert determination, or court.
What you get
- Professional Schedule of Dilapidations — Protocol-compliant, properly evidenced
- Strategic advice — On timing, approach, and likely outcomes
- Quantified claim — With supporting cost evidence
- Negotiation — We handle the back-and-forth with the tenant’s surveyor
- Settlement support — Guidance through to resolution
- Clear communication — You know where you stand throughout
Understanding the limitations
Dilapidations claims aren’t unlimited. As a landlord, you need to understand the caps that apply:
Diminution (Section 18)
Section 18 of the Landlord and Tenant Act 1927 caps your claim at the diminution in the property’s value caused by the tenant’s breaches. If the repair breaches reduce the property’s value by £50,000, your claim for repairs can’t exceed £50,000 — even if the works would cost £100,000.
This typically matters when repair costs are high relative to property value, or when the property is being sold or re-let regardless of condition.
Supersession
If you’re planning to demolish the building, redevelop it, or carry out works that would remove the defects anyway, your claim may be reduced or extinguished. Courts won’t allow landlords to recover costs for works they were never going to do.
This doesn’t mean you can’t claim if you have future plans — but those plans affect the claim value and need to be navigated carefully.
Why professional preparation matters
Tenants (and their surveyors) scrutinise dilapidations claims looking for weaknesses:
- Items that aren’t actually lease breaches
- Costs that are inflated or unsupported
- Works that would result in betterment
- Claims affected by diminution or supersession
A poorly prepared schedule invites challenge. A professionally prepared schedule — properly referenced to lease clauses, supported by evidence, realistic on costs — is much harder to pick apart.
The difference between a strong claim and a weak one can be tens of thousands of pounds in settlement.
What happens if you don’t pursue a claim?
- You don’t recover your entitlement — The tenant walks away without paying for breaches
- The property requires works at your cost — Repairs, decoration, reinstatement you should have been compensated for
- You set a precedent — Future tenants learn you don’t pursue claims
Dilapidations exist because tenants have obligations. There’s nothing aggressive about expecting them to be met.
Related services
At lease start:
- Schedules of Condition for Landlords — The baseline evidence that supports your claim at lease end
Mid-lease enforcement:
- Interim Schedules for Landlords — Address breaches during the lease term, before the terminal claim under a Section 146 notice
- Repairs Notices for Landlords — A softer approach than a formal Section 146 notice, without risking forfeiture
If defects need investigation:
- Building Pathology & Defect Analysis — When complex defects require technical investigation
If you’re carrying out works:
- Contract Administration — If you’re doing the works yourself rather than taking compensation, we can manage the process
FAQs
When should I serve my claim?
Earlier engagement (12-18 months before) allows better planning.
What if the tenant disputes my claim?
That’s expected. The tenant’s surveyor will respond with their position, and we negotiate toward an agreed settlement. Most claims settle through this process.
Can I claim if I’m going to redevelop?
Your claim may be limited by supersession, but it depends on the specifics. We can advise on what’s recoverable given your plans.
What’s the difference between Terminal and Final schedules?
A Terminal Schedule is served before or at lease end, giving the tenant the option to do the works. A Final Schedule is served after the lease ends — the tenant can only pay compensation at that point.
How long does the process take?
From instruction to settlement, typically 3-6 months for straightforward claims. Complex or disputed claims can take longer.
What if we can’t settle?
Most claims settle through negotiation. If not, options include mediation, expert determination, or court. We advise on the best route for your situation.