Schedules of Dilapidations

When a commercial property, such as a shop, office or factory, is leased that lease will include obligations for both the Landlord and the Tenant.

Typical Tenant obligations will include keeping the premises in good and proper repair and not altering the premises without the consent of the Landlord (by way of a license for alternations).

Ideally there will be a schedule of condition attached to the lease which can be used as a reference if a tenant is only required to ‘keep’ the premises in repair. However, many leases will require a tenant to ‘put’ the property in to good repair regardless of the condition at the start of the lease.

Where consent to undertake alternations has been provided by a landlord it will normally come with a condition to reverse that alteration at the end of the lease.

Landlords

Schedules of dilapidations can be prepared either during or close to the end of a lease. An interim schedule is served on a tenant with a view to them undertaking repairs whereas a terminal schedule generally forms the basis of a negotiation for a financial settlement at the end of the lease.

Tenants

It’s important that you are fully aware of the terms of your lease and their dilapidations implications. It is likely that a costed terminal schedule of dilapidations will be prepared and served on you as the end of the lease approaches. You will have the option to bring the property in to repair and reverse alternations but if a financial settlement is to be agreed we can review the schedule and negotiate on your behalf.

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