Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
When a commercial lease nears its end, the relationship between landlord and tenant often comes down to one question: what condition is the property being handed back in? The Schedule of Dilapidations sits at the heart of that question. It is the formal list a landlord uses to set out repair, reinstatement, and redecoration works they believe a tenant is liable for under the lease.
For tenants, it can mean a significant bill. For landlords, it is a way to protect the value of their asset. This guide walks you through how these schedules work in England and Wales, when they tend to appear, what they should contain, and the practical points both sides tend to argue about.
What this document is
A Schedule of Dilapidations is a document prepared on behalf of a landlord that itemises breaches of the tenant's repairing, decorating, and reinstatement obligations in a commercial lease. It is usually drafted by a building surveyor and references specific clauses in the lease, the nature of each alleged breach, and the remedial work required to put things right.
Depending on timing, the schedule may also include a costed valuation of those works. There are three common types. An interim schedule is served during the lease term, often where the landlord wants breaches fixed before matters worsen. A terminal schedule is served towards the end of the lease.
A final schedule, sometimes called a Quantified Demand, is served after the lease has ended and usually forms the basis of a financial claim. The process in England and Wales is shaped by the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of a Tenancy, commonly known as the Dilapidations Protocol. It sets expectations for how landlords present claims and how tenants should respond before any court action.
How to use this document
Read your lease carefully. Before reacting to any schedule, go back to the lease itself. The repairing covenant, the decorating clause, any schedule of condition attached at the start, and any alterations licences all shape what you are actually liable for. The schedule is only as strong as the lease clauses it relies on.
Check the timing and type of schedule. Identify whether you have received an interim, terminal, or final schedule. The type affects your options and the urgency of your response. A terminal schedule served close to lease expiry often signals that the landlord is preparing a financial claim, so the window for negotiation matters.
Get your own surveyor involved early. Dilapidations claims are rarely accepted at face value. A chartered building surveyor acting for the tenant can inspect the property, compare the claim against the lease, and flag items that are overstated, outside the tenant's liability, or already addressed. Early advice often reduces the final figure significantly.
Consider the section 18(1) cap. Under the Landlord and Tenant Act 1927, damages for disrepair at lease end are capped by the reduction in the value of the landlord's reversion caused by the breach. If the landlord plans to redevelop or substantially alter the property, the cap can sharply limit what is actually recoverable.
Negotiate or respond under the Protocol. Most dilapidations disputes settle without court proceedings. The tenant normally issues a Response to the schedule, scott schedule style, agreeing or disputing each item. From there, landlord and tenant negotiate a financial settlement, a works package, or a mix of both.
The landlord instructs a building surveyor, often a chartered surveyor, to inspect the property and prepare the schedule. A solicitor may also be involved, particularly where a formal claim is being prepared. Tenants typically instruct their own surveyor to review the schedule and respond. Having professionals on both sides tends to narrow the issues and helps avoid unnecessary disputes.
Q When can a landlord serve a Schedule of Dilapidations?
A landlord can serve one during the lease term (an interim schedule), towards the end of the lease (a terminal schedule), or after the lease has ended (a final schedule or Quantified Demand). Timing affects the remedies available. Interim schedules often seek works to be carried out, while terminal and final schedules are more commonly used to support a damages claim.
Q What is the section 18(1) cap?
Section 18(1) of the Landlord and Tenant Act 1927 limits the damages a landlord can recover for breach of a repairing covenant. The cap is the diminution in value of the landlord's reversion caused by the disrepair. If the property is going to be demolished or substantially altered, damages may be significantly reduced or even eliminated, regardless of the cost of works in the schedule.
Q Do I have to carry out the works myself, or can I pay the landlord instead?
That depends on the lease, the timing, and what is being negotiated. Before lease end, some tenants choose to carry out the works to control cost and quality. After lease end, disputes usually resolve as a financial settlement rather than physical works. Both routes are legitimate, and which makes sense often comes down to budget, time, and the commercial relationship.
Q What is a schedule of condition and why does it matter?
A schedule of condition is a photographic and written record of the property's state at the start of the lease. Where the lease limits the tenant's repairing obligation by reference to that schedule, the tenant is not required to hand the property back in better condition than they took it. This can dramatically reduce dilapidations exposure at the end of the term.
Q What happens if I ignore the Schedule of Dilapidations?
Ignoring it is rarely a good idea. The landlord can issue court proceedings for damages and, in some cases, for specific performance during the term. Costs can escalate quickly, and a failure to engage under the Dilapidations Protocol can be criticised by the court. Engaging early, even just to acknowledge receipt and instruct a surveyor, keeps your options open.
Q Can I negotiate the figures in a Schedule of Dilapidations?
Yes, and in practice most schedules are negotiated. Items may be overstated, outside the scope of the lease covenants, or already remedied. Costings are often challenged as well. A tenant's surveyor typically produces a response that goes through each item, and the parties then work towards a settlement figure that reflects what is actually recoverable.
Received a dilapidations schedule and unsure where to start?
Dilapidations claims often look bigger than they really are once the lease, the schedule of condition, and the section 18 cap are factored in. An experienced legal adviser can help you think through your position based on what you describe, so you know what questions to raise before agreeing anything.
✓A plain-English walkthrough of how dilapidations claims work in your situation
✓Practical perspective on what to challenge based on what you describe
✓Clarity on the section 18 cap and how it might affect your case
✓Help thinking through your next steps with the landlord or their surveyor
Personal call · For information only · Independent advisers
Written & reviewed by
Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.
