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

Morecambe shortlisted in National Visa Awards celebrating the UK’s thriving towns David Waddington and John O'Neill

Morecambe shortlisted in National Visa Awards celebrating the UK’s thriving towns

04 Jul 2025

2

County council sets out 'areas of focus for 2025-26 in document Coun Stephen Atkinson

County council sets out 'areas of focus for 2025-26 in document

04 Jul 2025

3

Warden Construction completes project to help Preston school double pupil numbers Warden Construction completes project to help Preston school double pupil numbers

Warden Construction completes project to help Preston school double pupil numbers

04 Jul 2025

4

Grant Thornton advises RJ Power Networks on sale to Ipsum Jamie Roberts

Grant Thornton advises RJ Power Networks on sale to Ipsum

04 Jul 2025

5

College principal resigns Karen Buchanan

College principal resigns

04 Jul 2025

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
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

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 LBV122 Online Graphic
Subscribe now

Weekly news bulletin