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Schedule of Dilapidations

Schedule of Dilapidations

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Schedule of Dilapidations

A schedule of dilapidations is the basis of a dilapidations claim and is essentially a list in a prescribed format detailing items of repair, maintenance, reinstatement and decoration which a Landlord considers are in need of remedy in order to comply with the terms of a lease.

The type of Schedule of Dilapidation the Landlord serves depends upon the time it is served in relation to the term of the lease.

  1. An interim schedule is served during the term of the lease, giving the tenant the opportunity to remedy any breaches before outstanding works escalate. Regular interim schedules are considered best practice and often prevent larger dilapidations claims arising when the lease is terminated.
  2. A terminal schedule is one that is served towards, or soon after, the end of the lease.

Serving a schedule prior to the end of the lease term gives the tenant early warning of any potential claim and the opportunity to remedy breaches (including reinstatement of any tenants alterations) before the termination of the lease. It is often the case that completing outstanding repairs and maintenance proves less financially onerous than a claim for financial compensation once the lease has terminated.

Serving a schedule after the tenancy has expired  will normally also incorporate a detailed financial claim as the tenant will not be entitled to undertake remedial works themselves once their right of occupation has come to an end so that negotiating a claim for damages is the only method of compensating the landlord for its loss.

 

Civil Procedure Rules and the ‘Dilapidations Protocol’

Dilapidations is a specialist and sometimes complex area and claims are normally best handled by experts with appropriate knowledge of landlord and tenant legislation and relevant survey experience in building defects.

Guidance in dealing with dilapidations claims is available from The Royal Institution of Chartered Surveyors latest (7th Edition) Guidance Note and it is important that a terminal claim for dilapidations is prepared with substantial compliance  to the ‘Dilapidations Protocol’ (The Pre-Action Protocol for Claims to Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy) which applies to such claims relating to commercial property in England and Wales.