Dilapidations - The landlord's claim

By Trevor Dawson Chartered Surveyors

02 Apr 2019

Under the majority of leases for commercial properties the tenant covenants to return the property to the landlord in good repair. This may be a point not considered at the commencement of the lease.

Today, many tenants will take a lease subject to a Schedule of Condition which will limit the tenant’s liability to handing back the property in the condition in which it is originally taken. However, if there is no Schedule of Condition then it is usually implied that the tenant must hand back the property in good condition, no matter what the state of repair at commencement.

It is the tenant’s responsibility to repair and hand back the property at the end of the term. On occasions the tenant and landlord may enter into a dialogue to agree the works that are required, or the landlord may serve on the tenant a Schedule of Dilapidations outlining the works that the landlord believes are required. However, what often happens is that the landlord and tenant do not enter into any discussions prior to the lease coming to an end and no Schedule is served upon the tenant. The tenant leaves the property in a state of some disrepair, leaving the landlord with the problem. It is at this stage that the landlord instructs a surveyor to prepare a Schedule of Dilapidations to serve on the tenant and make a claim for a financial settlement. What can the landlord claim? The landlord can claim for their loss. This is usually regarded as the cost of putting the property back into repair. However, this is not always the case. The landlord’s loss may be lower than the cost of repairing the property. Section 18 of the Landlord & Tenant Act sets to limit the measure of the landlord’s loss where the landlord proposes to demolish or redevelop the property. Professionals and commentators argue that this relates to repair only and does not extend to other matters such as redecoration or reinstatement of alterations. However, in reality, the common law limit on damages is the loss that is incurred and if the landlord proposes to demolish or substantially reconstruct the property then any redecoration, alteration or repair works carried out by the tenant would be undone and rendered valueless. In the circumstances the landlord cannot claim for such works as they are not suffering any loss. Alternatively, the property may be of a type that any future tenant would fit out to their own style or requirements. The market for the property may have changed such that a new tenant would require a different configuration or accept a different standard. These could all impact upon the works that the landlord needs to carry out to re-let the property, and therefore their loss. When a landlord serves a Schedule of Dilapidations at the end of the lease they are obliged to set out their intentions for the property. These intentions could have a significant impact upon the measure of any claim.

Latest news

1

Business board launches to support county's economic growth Lancashire Business Board

Business board launches to support county's economic growth

18 Jul 2024

2

Breck to deliver £150m of affordable homes over four years Breck Development In Progress

Breck to deliver £150m of affordable homes over four years

18 Jul 2024

3

Thompsons Contracts sponsors Elmer's Big Parade in Blackpool thompsons-csr.jpg.jpg

Thompsons Contracts sponsors Elmer's Big Parade in Blackpool

18 Jul 2024

4

Should I gift my wealth to my family to avoid inheritance tax? Should-I-gift-my-wealth-to-my-family-to-avoid-inheritance-tax-WEB.jpeg.jpg

Should I gift my wealth to my family to avoid inheritance tax?

18 Jul 2024

5

New AfterAthena partnership helps care providers deliver great care QCS.png.png

New AfterAthena partnership helps care providers deliver great care

18 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Lancashire Economic Breakfast
LBV Hub Seminars
18 Jul 2024

Lancashire Economic Breakfast

The Mill, St Catherine's Park, Preston, Lancashire

07:15 - 09:00

The Business Network Central & East Lancashire
LBV Header (10).png.png
LBV Hub Networking
18 Jul 2024 - 18 Jul 2024

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Conversations in Creativity - Creative Networking Event
Untitled design-4.png.png
LBV Hub Networking
18 Jul 2024

Conversations in Creativity - Creative Networking Event

Society1 Coworking Space, Preston, PR1 3LT

17:30 - 19:30

Business Networking in Fylde, Blackpool
Blackpool Fylde Image.jpg.jpg
LBV Hub Networking
19 Jul 2024

Business Networking in Fylde, Blackpool

Village Hotel Blackpool, Blackpool, FY3 8LL

07:30 - 09:30

What are Menopause Action Plans & How to Write One
Menopause Action Plan 2024.png.png
LBV Hub Webinar
19 Jul 2024

What are Menopause Action Plans & How to Write One

~ Online ~, ~ Online ~, ~ Online ~

12:30 - 13:00

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin