Schedule of Dilapidations

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 a 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 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
  • In accordance with the pre-action protocol for dilapidations
  • To encourage early settlement and avoid unnecessary litigation

As an additional service we can undertake the following works to include:

  • Preparing specification schedules
  • Inviting and administering tendering for remedial works
  • Appointing contractors
  • Monitoring the delivery of the project to ensure it is completed within budget, on time, and to the specified standard.

Section 18 Valuations – Diminution in value
If served a Schedule of Dilapidations from your Landlord, at first glance, the cost of yielding up the property in accordance with the lease can seem considerable. However, there is a legislative cap on the cost of works as set out within the 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.