Dilapidations

Dilapidation claims can be a daunting process for the inexperienced causing worry and frustration leading to exhaustive and combative attitudes that often delays settlement and prolongs the claim needlessly.

Our ambition is to provide independent pragmatic and commercial advice to our clients whilst managing expectations of likely outcomes that are based on nearly 3 decades of professional expertise.

Contact Us

Schedules of Dilapidations

A dilapidation survey, or “schedule of dilapidations”, is a detailed assessment of a commercial property’s condition at the end of a lease to identify breaches of the lease agreement regarding the property’s condition.

Types of dilapidation schedules

There are three main types of dilapidation schedules which surveyors prepare. 

  • An Interim Schedule:  Issued during the lease to inform the tenant of immediate repair needs and to ensure compliance. This is usually accompanied by a repair notice providing 3 months to address the breaches highlighted.
  • Terminal Schedule: Issued in the final years of the lease to identify specific disrepair issues requiring resolution.
  • Final Schedule: Issued after the lease expires, covering remedial works and potential claims for costs.

Who prepares and issues the schedule?

Landlords typically issue the schedule based on an assessment by a chartered building surveyor who inspects the condition of the property to compare against their lease obligations.  However, they can be issued by their appointed surveyor and/or solicitor, where strict compliance with the lease terms are necessary.

What’s included in a schedule of dilapidations?

A Schedule of Dilapidations (SoD) format typically includes a detailed list of breaches and remedies to address repair and condition issues, referencing relevant lease clauses, estimated costs, and deadlines for completion. It serves as a formal demand from the landlord to the tenant regarding breaches of lease covenants related to property condition. The format can vary, but generally includes these key elements: 

A clear identification of the property, including address and any relevant lease details.

Specific clauses from the lease agreement that outline the tenant’s repair, maintenance, and decoration obligations are referenced for each item.

A detailed description of each disrepair or breach of covenant, including the specific area affected (e.g., specific room, fixture, or fitting).

A clear specification of the necessary repairs, reinstatement, or decoration required to rectify the breaches.

An itemized breakdown of the estimated costs associated with the remedial works.

Visual documentation (photos or videos) to support the identified breaches and the extent of the disrepair.

A detailed breakdown of the landlord’s financial claim, often included in terminal schedules.

Importance of early considerations

Addressing dilapidations early can help reduce liabilities and we recommend the following guidance:

  • Before agreeing a lease, seek early professional advice – give us a call!
  • A pre-lease building survey of the property will help you understand the risks associated with dilapidations and identify potential negotiation points to secure a better deal. 
  • Always make sure your repairing and decorating obligations is limited to no better condition that the pre-lease condition.  Do this by having a detailed schedule of condition prepared and attached to the lease.
  • Manage and plan regular maintenance.  A planned maintenance schedule will help with periodic tasks and managing maintenance budgets.
  • Understand your mid-term dilapidation liabilities via a notional assessment of dilapidations and begin to include dilapidation provisions within your commercial accounts and reduce tax burdens whilst also managing your exposure to lease end dilapidation claims. 
  • Don’t try to DIY!  Our early engagement and advice will usually pay for it self in the savings achieved for you.

Why Choose Pure Building Consultancy

At Pure Building Consultancy we aim to understand your interest in the property so we can focus our advice and support to the areas you need to achieve your goals.