Schedules of Dilapidation

Usually prepared at or close to the end of a Lease by the Landlord, these Schedules should provide specific and detailed information relating to any breaches of covenant by the Tenant. The Landlord may require the Tenant to either put the property into repair, if served before the expiry of the Lease, or pay a cash settlement (which may include loss of rent) if no work is undertaken or it is served after the Lease has terminated.

Schedules of Dilapidation are regulated and controlled by various Acts including the Leasehold Property (Repair) Act 1938 (as amended) and Section 18(1) Valuations under the Landlord and Tenant Act 1927. The RICS have issued guidance and require surveyors to follow protocols to encourage settlement without recourse to legal action.

Both Landlords and Tenants are recommended to obtain early advice if they wish to avoid possible conflicts and litigation. Tenants can reduce their potential exposure to a claim by complying with their covenants and accepting that the buildings they occupy have to be maintained.  Landlords cannot expect the Tenant to return a property in 'pristine condition' and any claim will be limited by the diminution in value of the reversion.

Schedules of Condition

When new Leases are granted, Tenants are often required to 'keep' the property in full repair. The phrase 'keep' can mean 'put'. A Schedule can provide an effective way of a Tenant limiting the potential works that may be required by returning the property in the same condition as it was at the grant of the Lease.  The cost of obtaining a Schedule of Condition can be negligible when set against potential repair costs to 'put' the property into repair.

The Schedules that the Practice prepares are normally written and supported by photographic evidence and should be agreed between the parties at the commencement and referred to in the Lease to provide full protection.