Dilapidations

Dilapidations are the lease exit costs a tenant faces when returning a property to its pre-let condition at the end of a lease. That can mean repairing damage, reinstating alterations, or addressing maintenance obligations that have accumulated during the tenancy. For landlords, it is the mechanism for recovering the cost of putting a property back into the condition the lease required.

Disputes are common following a dilapidations survey and the figures involved can be significant. The outcome for both sides is, therefore, heavily influenced by how well the process is managed from the outset.

BTG Eddisons provides specialist dilapidations advice to both landlords and tenants, supported by RICS-qualified building consultants with deep experience in lease-end negotiations, schedule preparation, and dispute resolution.

Our team is here to support you when a lease is coming to an end, so get in touch to arrange a survey or receive bespoke advice.

What is a schedule of dilapidations?

A schedule of dilapidations is the legal document a landlord serves on a tenant to formalise a dilapidations claim. It sets out the tenant's obligations under the lease, details the work required to return the property to its pre-let condition, and includes a costed figure for carrying out that work.

Receiving a schedule of dilapidations can come as an unwelcome surprise, particularly when the figure quoted is substantial. It is worth bearing in mind, however, that the initial figure presented by a landlord does not necessarily reflect what it will cost to settle the claim.

Negotiation is a normal and expected part of the process, and the right adviser can make a significant difference to the outcome. There are two main types of schedule:

1. Interim schedule of dilapidations – Served during the lease, typically where disrepair is affecting the property's value, at a break clause, or as part of a statutory lease renewal.
2. Terminal schedule of dilapidations – The most common form, served at or near the end of the lease. Landlords are advised to serve within 56 days of lease expiry, though technically they have up to six years from the end of the lease to bring a claim.

For tenants, protecting your position starts before the tenancy begins. The wording of your lease has a direct bearing on your eventual liability, so understanding your obligations from the outset, and keeping records throughout, is essential.

Before the lease starts

Read the lease carefully and take legal advice if anything is unclear. Ask for a schedule of condition to be included too, as this is a detailed record of the property's state at the start of the lease, which can be invaluable for limiting your liability at the end.

During the tenancy

If you want to alter the property, obtain written consent from the landlord and follow the procedures set out in the lease. Keep records of any alterations and photograph the property regularly. Carry out maintenance obligations as they arise rather than allowing them to accumulate.

At lease end

If you receive a schedule of dilapidations, you have three options: agree to carry out the repairs yourself, agree to pay compensation, or dispute the claim. If you intend to dispute, instruct a chartered surveyor with dilapidations experience as early as possible. They will review the lease, assess the landlord's schedule, and provide strategic advice on how to proceed.

If agreement cannot be reached through negotiation, alternative dispute resolution or court proceedings are available. However, in most cases, a negotiated settlement is preferable for both parties.

How does BTG Eddisons carry out a dilapidations survey?

Once instructed, our RICS-certified surveyors follow a structured process:

1. Inspection – A detailed assessment of the property's current condition, covering structural elements, interior and exterior finishes, and all relevant building components.
2. Documentation – Photographs and written records of defects, wear, and any non-compliance with lease obligations.
3. Lease review – Analysis of the lease terms to identify repair and reinstatement obligations specific to the instruction.
4. Schedule preparation – A comprehensive report detailing breaches and associated repair costs, prepared to the appropriate standard for negotiation or legal proceedings.
5. Negotiation support – Active involvement in the settlement process, ensuring both parties reach a fair and well-evidenced outcome.

In our experience, effective negotiation can reduce initial tenant liability figures by 40 to 45%, and we support clients at every stage of the process, no matter the side we are acting for.

• Preparation and production of schedules of condition.
• Preparation and production of interim schedules of dilapidations.
• Preparation and production of terminal schedules of dilapidations.
• Final claim negotiation.
• Strategic guidance for landlords approaching the end of a tenant's lease.
• Review of stalled dilapidations negotiations.

• Preparation and production of schedules of condition.
• Defence of interim schedules of dilapidations.
• Defence of terminal schedules of dilapidations.
• Dilapidations assessments for budgeting or acquisition purposes.
• Advice on repair notices.
• Building contract management.

Why choose BTG Eddisons for dilapidations?

• RICS-qualified surveyors – Our dilapidations team consists of RICS-chartered surveyors, which is the professional standard landlords, tenants, and their legal advisers expect.
• Proven outcomes for tenants – We have a successful track record. In our experience, careful lease analysis, schedule review, and experienced negotiation typically reduce initial tenant liability figures by 40-45%.
• Experience on both sides – We act for landlords and tenants, which means we understand how the other side approaches a claim and use that knowledge to get the best result for our clients.
• National coverage – With 35 offices across the UK, we have 550 experts close to wherever your property is located.
• Client satisfaction – We are committed to delivering quality customer service whenever we are instructed, and our positive reviews reflect that.

Discuss your dilapidations needs with our team now

Whether you are a landlord preparing a claim or a tenant facing one, our dilapidations team is ready to help. Do not hesitate to call 0800 051 2593 or complete the form below and a member of our team will contact you to discuss your needs in more detail.