A dilapidations surveyor advises landlords and tenants on the repair, decoration and reinstatement obligations in a commercial lease. Our dilapidation services cover inspecting the property, preparing or responding to a schedule of dilapidations, assessing likely liability and supporting negotiation, whether the lease is mid-term, near a break date or at its end.
Sterlingworth Surveyors is a RICS-regulated firm (Firm Registration Number 850747) based in Chessington. We act for landlords, tenants and jointly instructed parties, and we confirm at the outset whether we are acting as your adviser or as an independent expert, because the two roles carry different duties. Our advice is surveying advice, not legal advice; where a point of law arises, we work alongside your solicitor.
Dilapidations are breaches of the obligations in a lease that deal with the physical state of a property — typically the covenants to repair, to redecorate, to remove alterations and reinstate the premises, and to hand the property back in the condition the lease requires. The word also describes the landlord’s claim when those obligations are not met.
Whether a liability exists, and how large it is, depends first on what the lease says. That is why every dilapidation assessment we carry out starts with the lease, not the building.
As early as possible. The options open to both sides narrow as the end of the lease approaches.
For a tenant, this is the best moment to limit future liability, by agreeing a schedule of condition (see below) and understanding what the repairing and reinstatement clauses will mean for this building.
A landlord may serve an interim schedule to get repairs done while the tenant is in occupation. A tenant may want a mid-term assessment to understand and budget for the likely liability. Some leases also let a landlord carry out the work and recover the cost from the tenant.
For longer leases the law adds a step: where a lease was originally granted for seven years or more and at least three years remain, the Leasehold Property (Repairs) Act 1938 can require the landlord to obtain the court’s permission before pursuing a damages claim for disrepair, if the tenant serves a counter-notice.
This is when advice gives the most room to manoeuvre. A tenant can choose between carrying out works and negotiating a financial settlement; a landlord can prepare a terminal schedule on a sound footing. If you plan to use a break clause, take legal advice early, as some break clauses come with conditions that must be met for the break to work; your solicitor will confirm what applies under your lease.
A landlord’s claim for lease-end dilapidations then normally follows the Dilapidations Protocol, explained below, and a tenant needs a considered, item-by-item response.
Interim dilapidations are breaches dealt with while the lease is running, usually with the aim of getting the work done. Terminal dilapidations are dealt with towards or after the end of the lease, when the landlord’s remedy is normally a claim for damages. The timing changes the documents used, the rules that apply and each side’s options.
| Interim dilapidations | Terminal dilapidations | |
|---|---|---|
| When | During the lease | Final months of the lease, or after it ends |
| Usual aim | Getting repairs carried out | Agreeing works, or settling a claim for damages |
| Dilapidations Protocol | Not aimed at interim claims | Sets out the steps the parties should follow |
| Points to check | 1938 Act for longer leases; any right to do works and recover the cost | Section 18(1) limit on damages; supersession; break conditions |
A schedule of dilapidations is a document, usually prepared by a surveyor for the landlord, that lists the alleged breaches of a lease’s repairing, decorating and reinstatement obligations and the work needed to put each one right. For a terminal claim it normally also sets out the cost of that work.
Under the Protocol, the landlord’s surveyor is expected to endorse a terminal schedule, confirming among other things that the works are reasonably required and the costs reasonable.
A schedule of condition is a written and photographic record of a property’s state, usually taken just before a lease starts. Depending on how the lease is worded, it can be used to limit the tenant’s repairing obligation so the property need not be handed back in better condition than it was taken, and it is a useful record of the original condition. Your solicitor will confirm its effect under your lease.
For a fuller picture of a building’s condition before you take a lease or buy, a commercial building survey goes further.
In England and Wales, terminal claims are expected to follow the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy — the Dilapidations Protocol. It sets out how the parties should exchange information and try to settle before court proceedings. In outline:
The landlord sends it within a reasonable time after the tenancy ends, endorsed by its surveyor.
The landlord sets out the sum claimed and how it is made up, which should be limited to its likely loss — not necessarily the same as the cost of the works.
The tenant replies item by item, saying what is accepted, what is disputed and why.
Where the legal limit on damages is relevant, valuation evidence of the effect of the disrepair may be exchanged.
The parties, usually through their surveyors, meet to narrow the issues, often recording positions in a Scott Schedule.
If the claim does not settle, options such as mediation, expert determination or arbitration should be considered. Court is a last resort, and a court can take account of how far each side followed the Protocol when deciding who pays the costs.
A schedule of dilapidations is a claim, not a bill. What is actually payable depends on several tests:
Measuring the effect on value needs a diminution valuation, a specialist form of commercial property valuation comparing the property as it is with its value had the lease been complied with.
For landlords, the aim is to protect the value of the property and recover a fair sum where a tenant has not met its obligations, with a claim that stands up to scrutiny.
For tenants, the aim is to know your real exposure early, budget for it, and respond to a claim on firm ground rather than paying the figure demanded.
Where both parties want one impartial view, we can be instructed jointly. Where a dispute needs deciding, we can act as arbitrator or independent expert, or give expert witness evidence, subject to the usual checks for conflicts of interest.
Most dilapidations claims settle through negotiation between the parties’ surveyors. Where they do not, and depending on the lease and what the parties agree, the next steps can include mediation, independent expert determination or arbitration. If a claim reaches court, a surveyor may give expert witness evidence, where the duty is to the court rather than to the party paying.
We can act in arbitration or as an independent expert, and provide expert witness evidence, on dilapidations matters.
Repairing, decorating, reinstatement and yield-up clauses, licences for alterations and any schedule of condition.
A detailed inspection to identify breaches, with photographs and notes that can be relied on later.
Interim and terminal schedules for landlords; item-by-item responses for tenants.
Negotiation with the other side’s surveyor towards a settlement that reflects the lease and the evidence.
Expert witness evidence, arbitration and independent expert determination.
The fee depends on the property, the lease, the stage the matter has reached and the scope of what you need. Tell us about the property and the lease, and we will confirm a fixed fee, or the basis on which we will charge, before you instruct us.
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Usually the tenant, for breaches of its own lease obligations. How much depends on the lease wording, the property’s condition at the start (especially if a schedule of condition was agreed), the reasonable cost of each item and legal limits such as section 18(1) of the Landlord and Tenant Act 1927. Whether the landlord’s fees are recoverable also depends on the lease.
It depends on the aim. An interim schedule is served during the lease to get repairs done. A terminal schedule is prepared towards the end of the lease or served within a reasonable time after it ends. Starting before the lease ends gives the tenant a chance to do the works, which can avoid a dispute.
Yes. Most claims are settled between the landlord’s and tenant’s surveyors, who work through the schedule item by item and agree a figure. A surveyor who knows the lease, the building and the rules that limit liability can negotiate on evidence rather than opinion, and advise when mediation or another route is worth considering.
Yes. We act for landlords, for tenants and for parties who instruct us jointly. Before we start, we confirm in writing who we are acting for and in what role — adviser to one party, or independent expert — because each role carries different professional duties.
Yes. For tenants, a mid-term assessment shows the likely liability while there is still time to budget or carry out works on your own terms. For landlords, it can support an interim schedule. Mid-term claims under some longer leases carry extra legal requirements, which we flag early so your solicitor can advise.
Our reports are evidence-based and can be relied on in negotiation and dispute resolution. If a matter goes to court, we can act as an expert witness; in that role our duty is to the court rather than to the party instructing us, and the report is prepared to meet the court’s requirements for expert evidence.
Yes. Reviewing the lease is at the heart of every dilapidations assessment: the repairing, decorating, reinstatement and yield-up clauses, licences for alterations and any schedule of condition. Where a clause raises a genuine point of law, we say so and recommend advice from your solicitor, as ours is surveying advice, not legal advice.
No. A schedule of condition records a property’s state, usually at the start of a lease. A schedule of dilapidations lists breaches of the lease and the work needed to remedy them, during the lease or at its end. A clear schedule of condition makes a later schedule of dilapidations much easier to agree.
Whether you are facing a schedule of dilapidations, planning a lease exit or preparing a claim, early advice keeps more options open. Tell us about the property, the lease and where you are in the process, and we will confirm the scope and fee before you instruct us.
If you are also negotiating a new rent, our rent review surveyors can advise alongside, and you can see all our commercial property services in one place.
