Dilapidations & Schedules of Condition

A Schedule of Dilapidations is a description of defects, present during or at the expiry of a lease term, which are in breach of the repairing covenants of the Lease.

Our Building Surveying Team have the experience and expertise to assess or scrutinise any claims for dilapidations for most types of commercial property.  We can provide Interim Schedules or Terminal Schedules of Dilapidations for Landlords or Tenants:

Interim Schedules usually only detail items of disrepair that are of a significant nature but Terminal Schedules will usually include all items of disrepair, with a quantified demand setting out the cost.

We prepare our Schedule of Dilapidations:

  • During the lease term for Interim Schedules
  • Just prior to the expiration of the lease term or determination date for Terminal Schedules
  • Following RICS guidance
  • Prepared in accordance with the pre-action protocol for dilapidations
  • To encourage early settlement and avoid unnecessary litigation

As an additional service we can Project Manage any repair / remediation works to include:

  • Prepare specification schedules
  • Invite and administer tendering for remedial works
  • Appoint contractors
  • Monitor the delivery of the project to ensure it is competed within budget, on time, and to the specified standard.

Section 18 Valuations – Diminution in value
If you have received a Schedule of Dilapidations from your Landlord, you should seek advice. At first glance the cost of yielding up the property in accordance with your lease can seem considerable. However, there is a legislative cap on the cost of these works as set out within Landlord and Tenant Act 1927 Section 18(1).

Simply put, this statutory cap prevents the cost of works exceeding the amount by which the value of the property is diminished, owing to the disrepair.

Harrisons can advise how you may be able to rely on this legislation to reduce the cost of remediation. This process is usually dealt with by one of our RICS Registered Valuers who can provide the market valuation advice to assist with the negotiations of any dilapidations claim under this legislation.

Schedules of Condition
Schedules of Condition are often prepared and attached to leases, as part of the contract of occupation, particularly for small or older properties where full repairing obligations could be onerous. Where it is agreed that the property will be returned at the end of the lease in a ‘no better’ condition than that found at the start of the term, it is recommended that a Schedule of Condition is attached to the lease to avoid uncertainty of the repairing requirements at the end of a tenancy.