Commercial Lease Repair Claims UK: Landlord & Tenant

What this document is

A repair claim in a commercial context is a demand, usually made by a landlord against a tenant, that work be carried out (or paid for) to put right physical issues with the leased premises. The claim is almost always rooted in the wording of the lease itself, which sets out what each party has agreed to maintain.

Claims may arise during the term of the lease or, more commonly, at or near the end, when the landlord prepares what is often called a schedule of dilapidations. That document lists alleged breaches of the tenant's repair, decoration, and reinstatement obligations, together with the landlord's estimated cost of remedying them.

Not every item on such a schedule is automatically payable. Statutory limits, the actual condition of the building at the start of the lease, the landlord's plans for the property after the lease ends, and the specific wording of the repair covenant all affect what a tenant genuinely owes. Understanding where the boundary sits between legitimate claim and overreach is where most disputes are won or lost.

How to use this document

1. Read the repair covenant carefully. The starting point is always the lease wording. Phrases like 'keep in repair', 'keep in good and substantial repair', or 'full repairing and insuring' carry different weight. Work out precisely what parts of the property the tenant covers, whether decoration and reinstatement are included, and whether there are any caveats linked to a schedule of condition.
2. Locate the schedule of condition, if one exists. A photographic or written schedule of condition attached to the lease can dramatically limit a tenant's exposure, because it fixes the standard the property must be returned in. If you have one, compare it to the current state of the premises before engaging with any claim. If you don't, gather whatever dated evidence you can about the property's original state.
3. Assess the schedule of dilapidations item by item. When a landlord serves a schedule, go through each alleged breach individually. Consider whether the item is genuinely disrepair rather than fair wear and tear, whether the remedial method proposed is reasonable, and whether the costs claimed are proportionate to the actual damage.
4. Consider the statutory cap on damages. Under section 18(1) of the Landlord and Tenant Act 1927, damages for breach of a repair covenant cannot exceed the reduction in the property's value caused by the disrepair. If the landlord intends to redevelop or substantially alter the premises, that can cap or even extinguish the claim entirely.
5. Try to settle before issuing proceedings. Most commercial repair claims settle. The Dilapidations Protocol encourages early exchange of information, endorsed surveyor's reports, and without prejudice negotiation. Litigation is expensive and uncertain, so a negotiated financial settlement is very often the most sensible outcome for both sides.

Common questions