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Preparation of Terminal Schedule of Dilapidations

Terminal Schedules of Dilapidations are prepared in the last three years of the lease term and detail the alleged breaches of the lease covenants.

Terminal Schedules of Dilapidations must be prepared in accordance with the Property Litigation Association’s “Dilapidations Protocol” to ensure that the landlord’s claim is fair and reasonable.

Accordingly, it should include:

  • References to specific lease clauses under which the obligation arises
  • Details of the alleged breaches
  • Suggested remedial works advised by the landlord’s surveyor to remedy the alleged breach
  • The landlord’s view of the associated remedial costs if the anticipated remedy is damages
  • An endorsement from the landlord’s surveyor confirming that in the opinion of the surveyor that all the works set out in the schedule are reasonably required to put the premises into a condition complying with the covenants of the lease and associated documentation.
  • Schedules of Dilapidations are typically commissioned by landlords to ensure either the tenant undertakes the works detailed within the Schedule or as the basis of a financial settlement.

In some instances the Schedule of Dilapidations may be accompanied by a valuation under s18 (1) Landlord and Tenant Act 1927 which limits the amount of damages to the loss in value of the landlord’s reversionary interest. Specialist advice must be sought when considering preparing s18 (1) valuations which TFT can advise on.

Following service of the Schedule, the tenant should respond with their assessment of the claim which is usually followed by a period of negotiation.

Features of a Schedule of Dilapidations:

  1. TFT prepare Schedules of Dilapidations after a thorough review of relevant documentation, such as the lease, and following a detailed inspection of the building.
  2. They are specific to each property and the landlord’s intentions for the building.
  3. Schedules of Dilapidations are central to making a successful claim and therefore must be prepared properly and professionally.

TFT prepare Schedules of Dilapidations which contain a correct assessment of the situation to ensure that your interest in your property is fully protected.