[ Dilapidations ]

Common Dilapidations Issues at Lease End and How to Manage Them

Most dilapidations claims involve the same recurring issues: repair, reinstatement, decoration and yielding up. Knowing what landlords typically claim, and what the law actually allows them to recover, is the foundation of any sensible exit strategy.

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Key points

  • Repair, reinstatement, redecoration and yielding up drive most claims.
  • Section 18(1) of the Landlord and Tenant Act 1927 caps recoverable damages.
  • Supersession can defeat large parts of a claim.
  • An agreed Schedule of Condition narrows disputes significantly.
  • Tenants should plan exit strategy 12 to 18 months ahead.

Repair and disrepair

Most claims start with alleged disrepair. Landlords serve a Schedule of Dilapidations setting out items they say breach the repair covenant, with costed remedies. The tenant's surveyor reviews each item against the lease, the actual condition and any agreed Schedule of Condition.

Reinstatement of alterations

Tenant alterations carried out under a Licence for Alterations almost always carry reinstatement obligations. Common claim items include partitioning, comms cabling, kitchenettes, signage and external plant.

Redecoration

Periodic and end-of-term decoration clauses are standard. Disputes usually focus on whether the timing, scope or specification claimed is reasonable, and whether decoration is genuinely required.

Yielding up and statutory compliance

Yielding up covers the condition the property must be returned in. Statutory issues such as asbestos, fire safety and electrical compliance are regularly bundled into terminal schedules and need careful review.

How the law limits recovery

Section 18(1) of the Landlord and Tenant Act 1927 caps recoverable damages at the diminution in value of the landlord's reversion. If the landlord intends to redevelop or refurbish, large parts of a claim may be defeated by supersession.

Frequently asked questions

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