A guide to what a schedule of dilapidations is and when they are used.
What is a Schedule of Dilapidations?
A schedule of dilapidations is a formal document, typically prepared by a landlord’s surveyor, which sets out alleged breaches of a tenant’s repairing and other lease obligations. In practical terms, it acts as a “to-do list” of works the landlord says the tenant must carry out or pay for.
It commonly includes items relating to repair, reinstatement of alterations, and redecoration, all linked back to the specific wording of the lease. While the concept is straightforward, the detail can be complex, as obligations vary from lease to lease.
When is a Schedule needed?
A schedule of dilapidations is usually served towards the end of a lease or shortly after it expires, when the landlord is assessing the condition of the property and any breaches of covenant.
It may also be served as an interim or terminal schedule, particularly where a landlord wants to prompt remedial works before lease expiry. Timing can be important, especially where negotiations are ongoing or where the landlord is considering future plans for the property.
Who drafts the Schedule?
The schedule is typically prepared by a building surveyor acting on behalf of the landlord, often with input from solicitors. The surveyor identifies the physical condition issues, while legal advisers ensure that the items claimed properly reflect the tenant’s obligations under the lease.
Tenants will usually instruct their own surveyor and solicitor to review the schedule, assess its accuracy, and prepare a formal response.
What does the Schedule cost?
The cost of preparing a schedule of dilapidations will depend on the size and condition of the property, as well as the complexity of the lease. Surveyor and legal fees can vary but are generally proportionate to the scale of the claim.
It is worth noting that the potential financial exposure can be significantly higher than the professional costs involved. Importantly, under the Landlord and Tenant Act 1927, a landlord’s claim for damages is capped at the extent to which the property’s value has actually been reduced, meaning a large schedule does not automatically result in a large financial settlement.
Most dilapidations disputes are made worse by avoidable mistakes, such as landlords overstating claims and tenants burying their heads in the sand. The best results come from early engagement, honest communication, and a willingness to find commercially sensible solutions. If talks stall, mediation can break the deadlock without the cost of court proceedings.
What should the Schedule include?
A schedule of dilapidations should clearly identify each alleged breach of covenant, the works said to be required to remedy it, and the basis for the claim under the lease. It should be supported by sufficient detail to allow the tenant to understand and respond.
The document should also comply with the Dilapidations Protocol, which encourages a transparent and reasoned approach. Overstated or poorly evidenced claims can undermine credibility and hinder negotiations.
Who pays for the Schedule?
In most cases, the landlord will initially bear the cost of preparing the schedule. However, leases often allow the landlord to recover certain costs from the tenant as part of a dilapidations claim, depending on the wording.
Each party will typically be responsible for its own professional fees during negotiations, although cost recovery may become an issue if the dispute proceeds further. As a result, both sides have an incentive to act reasonably and seek an early resolution.
Schedules of dilapidations do not need to be contentious, but disputes often arise where positions become entrenched or issues are not addressed early. The most effective approach is to engage constructively, take proper advice, and focus on achieving a commercially sensible outcome.
At Field Seymour Parkes, our Property Litigation Team helps landlords and tenants navigate dilapidations with confidence. Whether you need help reviewing a schedule, preparing a response, or reaching a resolution that works in practice, we are here to support you. If you would like to discuss your situation or simply understand your position, please do reach out to our Property Litigation Team.
