Understanding Dilapidations: Rights, Remedies, and Legal Advice for Property Owners
When a commercial lease comes to an end, landlords are often faced with questions of disrepair and financial liability. This is where “dilapidations” come into play—a critical area of property law that affects both property condition and profitability.
At Stretton Solicitors, we help property owners navigate the legal framework surrounding dilapidations claims. In this guide, we explain your rights, the remedies available, and how to enforce your claims effectively and legally.
What Are Dilapidations?
In property law, “dilapidations” refer to the breach of a tenant’s obligations under a lease to maintain, repair, or reinstate the property. These typically arise at lease expiry, where the property is returned in a condition worse than agreed upon.
Dilapidations can include:
- Structural or decorative disrepair
- Neglected maintenance of building services (e.g. HVAC, plumbing)
- Failure to remove alterations or reinstate the original layout
The landlord may seek compensation for these breaches, usually via a formal schedule of dilapidations.
Your Rights as a Landlord
If a tenant fails to meet their lease repair obligations, you have the legal right to:
- Serve a Schedule of Dilapidations
- Claim for damages to cover the cost of necessary repairs
- Apply pressure to ensure the tenant fulfils lease terms before vacating
However, your claim must comply with the Pre-Action Protocol for Dilapidations and reflect the actual financial loss, not just the repair cost. Overestimating damages or failing to follow due process can lead to disputes or reduced recovery.
Schedule of Dilapidations Explained
This formal document lists alleged breaches of the lease, along with required remedial works and associated costs. It is usually prepared by a building surveyor and served on the tenant prior to or immediately after lease expiry.
There are two types of schedules:
- Interim Schedule: Issued during the lease term
- Terminal Schedule: Issued near or after lease expiry
The tenant has the opportunity to respond and may negotiate the extent or cost of the works required. Legal support is essential at this stage to ensure fair settlement.
Legal Remedies and Settlement Options
Once a dilapidations claim is made, landlords can seek compensation in several ways:
- Negotiated settlement: Often the most time- and cost-efficient method
- Court proceedings: If disputes over liability or cost cannot be resolved
- Retaining deposit or guarantees: Where allowed under the lease
The landlord must demonstrate that the claimed loss reflects the actual reduction in the property’s value or its repair cost. In some cases, Section 18(1) of the Landlord and Tenant Act 1927 may limit recoverable damages to the reduction in the property’s market value.
According to RICS, more than 60% of commercial leases in the UK end with some form of dilapidations dispute, highlighting the importance of early legal and surveyor involvement.
Protect Your Investment With the Right Legal Support
Whether you’re preparing a dilapidations claim or responding to tenant negotiations, the legal complexities require expert handling. At Stretton Solicitors, we support landlords across the UK in securing fair outcomes that protect their property and finances.
Contact us today for tailored advice on dilapidations, lease obligations, and repair disputes. Let our team help you turn a complex legal issue into a resolved asset protection strategy.
Schedule a consultation now or call us directly to speak to a commercial property solicitor.